Question

C) A wrist watch was sold by a wholesaler from Mumbai (Maharashtra) to a dealer in Indore (MP) for Rs. 22000.

The dealer in Indore sold it to an end-user in Gwalior (MP) at a profit of Rs. 5000. If the rate of GST is 18%,
calculate
(i) the net IGST, CGST and SGST payable by dealer in Indore.
(ii) the cost price of the watch for the end-user.

Answer 1

(i) Net IGST = Rs. (22000 * 18%)/2 = Rs. 1980
Net CGST = Rs. 1980
Net SGST = Rs. 1980

(ii) Cost price of the watch for the end-user = Rs. 22000 + Rs. 5000 + Rs. 1980 + Rs. 1980 = Rs. 30880