Question

4) Hamid purchased some educational stationary and paid GST of Rs.1800. He sold all

educational stationary Nishaben and collected GST of Rs.2100. Find the GST CGST and
SGST to be paid

Answer 1

Answer: Therefore, Hamid needs to pay Rs. 1050 as both CGST and SGST.

Explanation:

Assuming the GST rate is the same for both the purchase and the sale, we can calculate the GST rate as follows:

GST rate = GST paid / Cost of stationary purchased

= 1800 / Cost of stationary purchased

Since we don't have the cost of stationary purchased, we can't calculate the GST rate or the CGST and SGST amounts directly. However, we know that the GST collected from Nishaben was Rs. 2100, which is equal to the GST paid plus the profit earned on the sale. We can express this mathematically as follows:

GST collected = GST paid + Profit

Profit = GST collected - GST paid

= 2100 - 1800

= Rs. 300

Since the profit earned is Rs. 300, we can find the cost of the stationary purchased by subtracting the profit from the amount collected from Nishaben:

Cost of stationary purchased = GST collected - Profit

= 2100 - 300

= Rs. 1800

Now that we know the cost of the stationary purchased, we can calculate the GST rate as follows:

GST rate = GST paid / Cost of stationary purchased

= 1800 / 1800

= 1

Since the GST rate is 1 (or 100%), we can divide the total GST collected equally between CGST and SGST:

CGST = SGST = GST collected / 2

= 2100 / 2

= Rs. 1050

Therefore, Hamid needs to pay Rs. 1050 as both CGST and SGST.