Question

Total invoice value of a toy- old in the same city) is us$281.60 to of GST is 28. Find the taxable value GST and SGST for this toy car​

Answer 1

The taxable value for the toy car is $220, the total GST is $61.60, which splits evenly to $30.80 for both CGST and SGST.

Step-by-step explanation:

The question asks us to find the taxable value, Goods and Services Tax (GST), and State Goods and Services Tax (SGST) for a toy car with an invoice value of $281.60, where the rate of GST is 28%.

To find the taxable value, we must first deduct the GST from the total invoice value. Given an 8.25% tax rate example, we know that the total amount paid after taxes is the cost of the goods plus the tax. Here, however, we need to work the other way around to find the original price before tax (the taxable value).

The GST can be split equally into CGST and SGST, which is common in some countries. Since the GST is 28%, we can assume that CGST and SGST are both 14% of the taxable value.

To calculate the taxable value:

1. Denote the taxable value as 'x'.
2. Since GST is added to the taxable value to get the final price, we can write the equation as x + 0.28x = $281.60.
3. Solving this gives us x = $281.60 / 1.28, which is approximately $220.
4. Now we know the taxable value, we can calculate the GST amount as 0.28 * $220.00, which is $61.60.
5. Since CGST and SGST are equal, both will be $61.60 / 2, giving us $30.80 for each.

Thus, the taxable value for the toy car is $220, the GST is $61.60, and SGST is $30.80.