## Chapter 4 - Financial Planning

**Practice set 4.1**

**1. ‘Pawan Medical’ supplies medicines. On some medicines the rate of GST is 12%, then what is the rate of CGST and SGST?**

**Solution:**

Rate of GST on medicines = 12%

**Ans:** Rate of CGST is 6% and Rate of SGST is 6%

**2. On certain article if rate of CGST is 9% then what is the rate of SGST? and what is the rate of GST?**

**Solution:**

Rate of CGST = 9%

∴ Rate of CGST = Rate of SGST = 9%

∴ Rate of GST

= Rate of CGST + Rate of SGST

= 9% + 9%

∴ Rate of GST = 18%

**Ans:** Rate of SGST is 9% and rate of GST is 18%.

**3. ‘M/s. Real Paint’ sold 2 tins of lustre paint and taxable value of each tin is ₹ 2800. If the rate of GST is 28%, then find the amount of CGST and SGST charged in the tax invoice. **

**Solution:**

Taxable value of 2 boxes of paints

= 2 × 2800

= ₹ 5600

Rate of GST = 28%

∴ Rate of CGST is 14% and rate of SGST is 14%.

∴ CGST

= 14% of ₹ 5600

= \(\large \frac {14}{100}\) × 5600

= ₹ 784

∴ CGST = SGST = ₹ 784

**Ans:** The amount of CGST is ₹ 784 and SGST is ₹ 784 charged in tax invoice.

**4. The taxable value of a wrist watch belt is ₹586. Rate of GST is 18%. Then what is price of the belt for the customer ? **

**Solution:**

Taxable value = ₹ 586

Rate of GST = 18%

∴ Rate of CGST = 9% and Rate of SGST = 9%

∴ CGST

= 9% of ₹ 586

= \(\large \frac {9}{100}\) × 586

= ₹ 52.74

∴ CGST = SGST = ₹ 52.74

∴ Amount to be paid by customer

= Taxable value + CGST + SGST

= 586 + 52.74 + 52.74

= ₹ 691.48

**Ans:** The price of belt for customer is ₹ 691.48.

**5. The total value (with GST) of a remote-controlled toy car is ₹ 1770. Rate of GST is 18% on toys. Find the taxable value, CGST and SGST for this toy-car.**

**Solution:**

Rate of GST = 18%

If taxable value is ₹ 100 then total value of toy car including GST will be (100 + 18) = ₹ 118.

Similarly, if taxable value is ₹ x, than total value of toy car including GST is ₹ 1770.

∴ \(\large \frac {100}{x}\) = \(\large \frac {118}{1770}\)

∴ x = \(\large \frac {100\,×\,1770}{118}\)

∴ x = 1500

Rate of GST = 18%

Rate of CGST is 9% and rate of SGST is 9%

∴ CGST

= 9% of ₹ 1500

= \(\large \frac {9}{100}\) × 1500

= ₹ 135

∴ CGST = SGST = ₹ 135

**Ans:** The taxable value of a car is ₹ 1500, CGST for the toy-car is ₹ 135 and SGST for the toy-car is ₹ 135.

**6. ‘Tiptop Electronics’ supplied an AC of 1.5 tons to a company. Cost of the AC supplied is ₹51,200 (with GST). Rate of CGST on AC is 14%. Then find the following amounts as shown in the tax invoice of Tiptop Electronics. **

**(1) Rate of SGST **

**(2) Rate of GST on AC **

**(3) Taxable value of AC**

**(4) Total amount of GST **

**(5) Amount of CGST **

**(6) Amount of SGST **

**Solution:**

(1) Rate of CGST on A.C. = 14% …*[Given]*

Ans: Rate of SGST on A.C. = 14%

(2) Rate of GST on A.C.

= Rate of CGST + Rate of SGST

= 14% + 14%

= 28%

**Ans:** Rate of GST on A.C. = 28%

(3) If taxable value of A.C. is ₹ 100, then total value including GST will be (100 + 28) = ₹ 128.

Similarly, if taxable value of an A.C. is ₹ x then total value including GST is ₹ 51,200.

∴ \(\large \frac {100}{x}\) = \(\large \frac {128}{51200}\)

∴ x = \(\large \frac {51200\,×\,100}{11l28}\)

∴ x = 40000

Ans: The taxable value of an A.C. is ₹ 40,000

(4) Total GST

= Total cost including GST – Taxable price

= 51,200 – 40,000

= ₹ 11,200

**Ans:** Total GST is ₹ 11,200

(5) Amount of CGST

= \(\large \frac {Total\,GST}{2}\)

= \(\large \frac {11200}{2}\)

= ₹ 5600

**Ans:** Amount of CGST = ₹ 5600

(6) Amount of CGST = Amount of SGST = ₹ 5600

**Ans:** Amount of SGST = ₹ 5600

**7. Prasad purchased a washing-machine from ‘Maharashtra Electronic Goods’. The discount of 5% was given on the printed price of ₹40,000. Rate of GST charged was 28%. Find the purchase price of washing machine. Also find the amount of CGST and SGST shown in the tax invoice.**

**Solution:**

The printed price of a washing machine = ₹ 40,000

Rate of Discount = 5%

∴ Discount

= 5% of ₹ 40,000

= \(\large \frac {5}{100}\) × 40000

= ₹ 2000

∴ Taxable value of washing machine

= Printed price – Discount

= 40,000 – 2000

= ₹ 38,000

Rate of GST on washing machine = 28%

∴ Rate of CGST is 14% and rate of SGST is 14%

∴ CGST

= 14% of ₹ 38000

= \(\large \frac {14}{100}\) × 38000

∴ CGST = ₹ 5320

∴ CGST = SGST = ₹ 5320

Purchase price of washing machine

= Taxable value + CGST + SGST

= 38000 + 5320 + 5320

= ₹ 48,640

**Ans:** Prasad paid ₹ 48,640 for washing machine and the CGST for the washing machine is ₹ 5320 and SGST for the washing machine is ₹ 5320.

**Practice set 4.2**

**1. ‘Chetana Store’ paid a total GST of ₹ 1,00,500 at the time of purchase and collected GST ₹ 1,22,500 at the time of sale during 1st of July 2017 to 31st July 2017. Find the GST payable by Chetana Stores. **

**1. ‘Chetana Store’ paid a total GST of ₹ 1,00,500 at the time of purchase and collected GST ₹ 1,22,500 at the time of sale during 1st of July 2017 to 31st July 2017. Find the GST payable by Chetana Stores.**

**Solution:**

**Input tax (ITC) = ₹ 1,00,500**

**Output tax = ₹ 1,22,500**

**∴ GST payable **

**= Output tax – ITC**

**= 1,22,500 – 1,00,500**

**= ₹ 22,000**

**Ans:** The GST payable by Chetana Stores is ₹ 22,000.

**2. Nazama is a proprietor of a firm, registered under GST. She has paid GST of ₹ 12,500 on purchase and collected ₹ 14,750 on sale. What is the amount of ITC to be claimed ? What is the amount of GST payable ?**

**2. Nazama is a proprietor of a firm, registered under GST. She has paid GST of ₹ 12,500 on purchase and collected ₹ 14,750 on sale. What is the amount of ITC to be claimed ? What is the amount of GST payable ?**

**Solution:**

**Input tax (ITC)= ₹ 12,500**

**Output tax = ₹ 14,750**

**∴ GST Payable **

**= Output tax – ITC**

**= 14,750 – 12,500**

**= ₹ 2250**

**Ans:** Input tax credit for Nazama is ₹ 12500 and GST to be paid is ₹ 2250.

**3. Amir Enterprise purchased chocolate sauce bottles and paid GST of ₹ 3800. He sold those bottles to Akbari Bros. and collected GST of ₹ 4100. Mayank Food Corner purchased these bottles from Akabari Bros and paid GST of ₹ 4500. Find the amount of GST payable at every stage of trading and hence find payable CGST and SGST. **

**3. Amir Enterprise purchased chocolate sauce bottles and paid GST of ₹ 3800. He sold those bottles to Akbari Bros. and collected GST of ₹ 4100. Mayank Food Corner purchased these bottles from Akabari Bros and paid GST of ₹ 4500. Find the amount of GST payable at every stage of trading and hence find payable CGST and SGST.**

**Solution:**

**(i) For Amir Enterprises:**

**ITC = ₹ 3800**

**Output tax = ₹ 4100**

**∴ GST payable **

**= Output tax – ITC**

**= 4100 – 3800**

**= ₹ 300**

**CGST = SGST = \(\large \frac {300}{2}\) = ₹ 150**

**(ii) For Akbari Brothers:**

**ITC = ₹ 4100**

**Output tax = ₹ 4500**

**∴ GST payable **

**= Output tax – ITC**

**= 4500 – 4100**

**= ₹ 400**

**CGST = SGST = \(\large \frac {400}{2}\) = ₹ 200**

**Ans:** GST payable by Amir Enterprises is ₹ 300 and CGST is ₹ 150 and SGST is ₹ 150 and GST payable by Akbari Brothers is ₹ 400 and CGST is ₹ 200 and SGST is ₹ 200.

**4. Malik Gas Agency (Chandigarh Union Territory) purchased some gas cylinders for industrial use for ₹ 24,500, and sold them to the local customers for ₹ 26,500. Find the GST to be paid at the rate of 5% and hence the CGST and UTGST to be paid for this transaction. (for Union Territories there is UTGST instead of SGST.)**

**4. Malik Gas Agency (Chandigarh Union Territory) purchased some gas cylinders for industrial use for ₹ 24,500, and sold them to the local customers for ₹ 26,500. Find the GST to be paid at the rate of 5% and hence the CGST and UTGST to be paid for this transaction. (for Union Territories there is UTGST instead of SGST.)**

**Solution:**

**Tax paid at the time of purchase (Input tax ITC)**

**= 5% of ₹ 24,500**

**= \(\large \frac {5}{100}\) × 24500**

**= ₹ 1225**

**Tax collected at the time of sale (Output tax)**

**= 5% of ₹ 26,500**

**= \(\large \frac {5}{100}\) × 26500**

**= ₹ 1325**

**∴ GST **

**= Output tax – ITC**

**= 1325 – 1225**

**= ₹ 100**

**∴ CGST = UTGST = \(\large \frac {100}{2}\) = ₹ 50 **

**Ans:** GST to be paid by Malik gas agency is ₹ 100, CGST = ₹ 50 and UTGST = ₹ 50

**5. M/s Beauty Products paid 18% GST on cosmetics worth ₹ 6000 and sold to a customer for ₹ 10,000. What are the amounts of CGST and SGST shown in the tax invoice issued ?**

**5. M/s Beauty Products paid 18% GST on cosmetics worth ₹ 6000 and sold to a customer for ₹ 10,000. What are the amounts of CGST and SGST shown in the tax invoice issued ?**

**Solution:**

**Tax paid at the time of purchase (ITC) **

**= 18% of ₹ 6000**

**= \(\large \frac {18}{100}\) × 6000**

**= ₹ 1080**

**Tax collected at the time of sale (Output tax)**

**= 18% of ₹ 10,000**

**= \(\large \frac {18}{100}\) × 10000**

**= ₹ 1800**

**∴ GST **

**= Output tax – ITC**

**= 1800 – 1080**

**= ₹ 720**

**Tax invoice for GST:**

**Ans:** CGST is ₹ 900 and SGST is ₹ 900.

**6. Prepare Business to Consumer (B2C) tax invoice using given information. Write the name of the supplier, address, state, Date, invoice number, GSTIN etc. as per your choice. **

**6. Prepare Business to Consumer (B2C) tax invoice using given information. Write the name of the supplier, address, state, Date, invoice number, GSTIN etc. as per your choice.**

**Supplier : **

**M/s – – – – – – – – Address – – – – – State – – – – – Date – – – – – – – Invoice No. – – – – – GSTIN – – – – – – – – – – – – – –**

**M/s – – – – – – – – Address – – – – – State – – – – – Date – – – – – – – Invoice No. – – – – – GSTIN – – – – – – – – – – – – – –**

**Particulars – **

**Rate of Mobile Battery – ₹ 200 Rate of GST 12% HSN 8507, 1 pc.**

**Rate of Mobile Battery – ₹ 200 Rate of GST 12% HSN 8507, 1 pc.**

**Rate of Headphone – ₹ 750 Rate of GST 18% HSN 8518, 1 pc.**

**Rate of Headphone – ₹ 750 Rate of GST 18% HSN 8518, 1 pc.**

**Solution:**

**(7) Prepare Business to Business (B2B) Tax Invoice as per the details given below. ****Name of the supplier, address, Date etc. as per your choice.**

**(7) Prepare Business to Business (B2B) Tax Invoice as per the details given below.**

**Name of the supplier, address, Date etc. as per your choice.**

**Supplier – ****Name, Address, State, GSTIN, Invoice No., Date**

**Supplier –**

**Name, Address, State, GSTIN, Invoice No., Date**

**Recipient – ****Name, Address, State, GSTIN, **

**Recipient –**

**Name, Address, State, GSTIN,**

**Items : **

**Items :**

**(1) Pencil boxes 100, HSN – 3924, Rate – ₹ 20, GST 12% **

**(1) Pencil boxes 100, HSN – 3924, Rate – ₹ 20, GST 12%**

**(2) Jigsaw Puzzles 50, HSN 9503, Rate – ₹ 100 GST 12%.**

**(2) Jigsaw Puzzles 50, HSN 9503, Rate – ₹ 100 GST 12%.**

**Solution:**

**Practice set 4.3**

**Practice set 4.3**

**(1) Complete the following table by writing suitable numbers and words.**

**(1) Complete the following table by writing suitable numbers and words.**

**Solution:**

**(2) Mr. Amol purchased 50 shares of Face Value ₹ 100 when the Market value of the share was ₹ 80. Company had given a 20% dividend. Find the rate of return on investment. **

**(2) Mr. Amol purchased 50 shares of Face Value ₹ 100 when the Market value of the share was ₹ 80. Company had given a 20% dividend. Find the rate of return on investment.****Solution:**

**FV of share = ₹ 100**

**Dividend per share**

**= 20% of ₹ 100**

**= \(\large \frac {20}{100}\) × 100**

**= ₹ 20**

**∴ Dividend on 50 shares**

**= 50 × 20**

**= ₹ 1000**

**MV of share = ₹ 80**

**Total investment **

**= 50 × 80**

**= ₹ 4000**

**Rate of return **

**= \(\large \frac {Total \,dividend received}{Total\, investment}\) × 100**

**= \(\large \frac {1000}{4000}\) × 100**

**= 25 %**

**Ans:** Rate of return is 25%

**(3) Joseph purchased following shares, Find his total investment. **

**(3) Joseph purchased following shares, Find his total investment.****Company A : 200 shares, FV = ₹ 2, Premium = ₹ 18.**

**Company A : 200 shares, FV = ₹ 2, Premium = ₹ 18.****Company B : 45 shares, MV = ₹ 500 **

**Company B : 45 shares, MV = ₹ 500****Company C : 1 share, MV = ₹ 10,540.**

**Company C : 1 share, MV = ₹ 10,540.****Solution:**

**Company A : **

**Premium = ₹ 18 and FV = ₹ 2**

**MV of 1 share **

**= FV + Premium**

**= 2 + 18**

**= ₹ 20**

**Total investment in Company A **

**= No. of shares × MV**

**= 200 × 20**

**= ₹ 4000**

**Company B : **

**No. of shares = 45 , MV = ₹ 500**

**∴ Total investment in Company B **

**= No. of shares × MV**

**= 45 × 500**

**= ₹ 22,500**

**Company C : **

**No. of shares = 1, MV = ₹ 10,540**

**∴ Total investment in Company C **

**= No. of shares × MV**

**= 1 × 10,540**

**= ₹ 10,540**

**Now,**

**Total investment **

**= 4000 + 22,500 + 10,540 **

**= ₹ 37,040**

**Ans:** Total investment is ₹ 37,040.

**(4) Smt. Deshpande purchased shares of FV ₹ 5 at a premium of ₹ 20. How many shares will she get for ₹ 20,000?**

**(4) Smt. Deshpande purchased shares of FV ₹ 5 at a premium of ₹ 20. How many shares will she get for ₹ 20,000?****Solution:**

**FV of share = ₹ 5, Premium = ₹ 20**

**∴ MV **

**= FV + Premium**

**= 5 + 20 **

**= ₹ 25**

**Total investment = ₹ 20,000**

**∴ Number of shares **

**= \(\large \frac {Total\,investment}{MV}\)**

**= \(\large \frac {20000}{25}\)**

**= 800**

**Ans:** Mrs. Deshpande will get 800 shares.

**(5) Shri Shantilal has purchased 150 shares of FV ₹ 100, for MV of ₹ 120. Company has paid dividend at 7%. Find the rate of return on his investment.**

**(5) Shri Shantilal has purchased 150 shares of FV ₹ 100, for MV of ₹ 120. Company has paid dividend at 7%. Find the rate of return on his investment.****Solution:**

**FV of share = ₹ 100**

** **

**Dividend on one share **

**= 7% of ₹ 100**

**= \(\large \frac {1}{2}\) × 100**

**= ₹ 7**

** **

**Dividend on 150 shares **

**= 150 × 7**

**= ₹ 1050**

** **

**MV of share = ₹ 120**

** **

**Total investment **

**= 150 × 120**

**= ₹ 18,000**

** **

**Rate of return **

**= \(\large \frac {Total \,dividend received}{Total\, investment}\) × 100**

**= \(\large \frac {1050}{18000}\) × 100**

**= 5.83 %**

** **

**Ans:** Rate of return on his investment is 5.83%

**(6) If the face value of both the shares is same, then which investment out of the following is more profitable? **

**(6) If the face value of both the shares is same, then which investment out of the following is more profitable?****Company A : dividend 16%, MV = ₹ 80.**

**Company A : dividend 16%, MV = ₹ 80.****Company B : dividend 20%, MV = ₹ 120.**

**Company B : dividend 20%, MV = ₹ 120.****Solution:**

**Suppose the amount invested in both the companies is ₹ 9600, (i.e ₹ 80 × ₹ 120)**

**Let x be the face value.**

** **

**For company A:**

**MV = ₹ 80**

**Dividend rate = 16%**

** **

**No of shares purchased**

**= \(\large \frac {Amount\,Invested}{MV}\)**

**= \(\large \frac {9600}{800}\)**

**= 120 **

** **

**Dividend per share **

**= Face value × rate**

**= x × 16%**

**= x × \(\large \frac {16}{100}\) **

**= 0.16x**

** **

**Dividend on shares **

**= Dividend per share × No. of share**

**= 120 × 0.16x**

**= 1.92x**

** **

**For company B:**

**MV = ₹ 120**

**Dividend rate = 20%**

** **

**No of shares purchased**

**= \(\large \frac {Amount\,Invested}{MV}\)**

**= \(\large \frac {9600}{800}\)**

**= 120 **

** **

**Dividend per share **

**= Face value × rate**

**= x × 20%**

**= x × \(\large \frac {20}{100}\) **

**= 0.20x**

** **

**Dividend on shares **

**= Dividend per share × No. of share**

**= 80 × 0.20x**

**= 1.60x**

** **

**Now,**

**Company A gives more amount of dividend than company B,**

**∴ Investment in Company A is more profitable**

**Practice set 4.4**

**Practice set 4.4****1. Market value of a share is ₹ 200. If the brokerage rate is 0.3% then find ****the purchase value of the share. **

**1. Market value of a share is ₹ 200. If the brokerage rate is 0.3% then find****the purchase value of the share.****Solution:**

**MV = ₹ 200**

**Brokerage = 0.3%**

**Brokerage per share **

**= 0.3% of ₹ 200**

**= \(\large \frac {0.3}{100}\) × 200**

**= ₹ 0.60**

**Purchase value per share **

**= Market value + Brokerage**

**= 200 + 0.60**

**= ₹ 200.60**

**Ans:** Purchase value of the share is ₹ 200.60

**2. A share is sold for the market value of ₹ 1000. Brokerage is paid at the rate of 0.1%. What is the amount received after the sale ?**

**2. A share is sold for the market value of ₹ 1000. Brokerage is paid at the rate of 0.1%. What is the amount received after the sale ?****Solution:**

**MV = ₹ 1000**

**Brokerage = 0.1%**

**Brokerage per share **

**= 0.1% of ₹ 1000**

**= \(\large \frac {0.1}{100}\) × 1000**

**= ₹ 1**

**∴ Selling price per share **

**= MV – Brokerage**

**= 1000 – 1**

**= ₹ 999**

**Ans:** The amount obtained on selling the share is ₹ 999.

**3. Fill in the blanks given in the contract note of sale-purchase of shares. **

**3. Fill in the blanks given in the contract note of sale-purchase of shares.****(B – buy S – sell)**

**Solution:**

**4. Smt. Desai sold shares of face value ₹ 100 when the market value was ₹ 50 and received ₹ 4988.20. She paid brokerage 0.2% and GST on brokerage 18%, then how many shares did she sell ? **

**4. Smt. Desai sold shares of face value ₹ 100 when the market value was ₹ 50 and received ₹ 4988.20. She paid brokerage 0.2% and GST on brokerage 18%, then how many shares did she sell ?****Solution:**

**Market value of share = ₹ 50**

**Brokerage = 0.2%**

**∴ Brokerage per share **

**= 0.2% of ₹ 50**

**= \(\large \frac {0.2}{100}\) × 50**

**= ₹ 0.10**

**∴ GST on brokerage per share **

**= 18 % of ₹ 0.10**

**= \(\large \frac {18}{100}\) × 0.10**

**= ₹ 0.018**

**Total selling price per share **

**= MV – Brokerage – GST**

**= 50 – 0.10 – 0.018**

**= ₹ 49.882**

**∴ Number of shares sold **

**= \(\large \frac {Total \,amount \,received}{Selling \,price \,of \,one \,share}\) **

**= \(\large \frac {4988.20}{49.882}\)**

**= 100**

**Ans:** Smt. Desai sold 100 shares.

**5. Mr. D’souza purchased 200 shares of FV ₹ 50 at a premium of ₹ 100. He received 50% dividend on the shares. After receiving the dividend he sold 100 shares at a discount of ₹ 10 and remaining shares were sold at a premium of ₹ 75. For each trade he paid the brokerage of ₹ 20. Find whether Mr. D’souza gained or incurred a loss ? by how much ?**

**5. Mr. D’souza purchased 200 shares of FV ₹ 50 at a premium of ₹ 100. He received 50% dividend on the shares. After receiving the dividend he sold 100 shares at a discount of ₹ 10 and remaining shares were sold at a premium of ₹ 75. For each trade he paid the brokerage of ₹ 20. Find whether Mr. D’souza gained or incurred a loss ? by how much ?****Solution:**

**Share at premium = ₹ 100, FV = ₹ 50 and dividend = 50%**

**Dividend per share **

**= 50% of ₹ 50**

**= \(\large \frac {50}{100}\) × 50**

**= ₹ 25**

**Dividend on 200 share **

**= 200 × 25**

**= ₹ 5000**

**Purchase price per share **

**= FV + Premium**

**= 50 + 100**

**= ₹ 150**

**∴ Purchase price of 200 shares **

**= 200 × 150 + Brokerage**

**= 30,000 + 20**

**= ₹ 30,020**

**Now, 100 shares were sold at ₹ 10 discount**

**∴ Selling price per share **

**= FV – discount**

**= 50 – 10**

**= ₹ 40**

**∴ Selling price of first 100 shares **

**= 100 × 40 – Brokerage**

**= 4000 – 20 **

**= ₹ 3980**

**Now, remaining 100 shares were sold at ₹ 75 premium.**

**∴ Selling price per share **

**= FV + Premium**

**= 50 + 75**

**= ₹ 125**

**∴ Selling price of 100 shares **

**= 100 × 125 – Brokerage**

**= 12,500 – 20 **

**= ₹ 12,480**

**∴ Amount received on selling 200 shares**

**= Dividend + Selling Price**

**= 3,980 + 12,480**

**= ₹ 16,460**

**Net amount received **

**= 5000 + 16,450**

**= ₹ 21,460**

**Here, net amount invested = ₹ 30,020 and net amount received = ₹ 21,460**

**∴ Net amount received < Net amount invested**

**There is a loss in the transaction**

**Loss incurred **

**= Net amount invested – Net amount received**

**= 30,020 – 21,460**

**= ₹ 8560**

**Ans:** Mrs. D’Souza made a loss of ₹ 8560 in the whole transaction.

**Problem Set 4A**

**Problem Set 4A****1. Write the correct alternative for each of the following. **

**1. Write the correct alternative for each of the following.****(1) Rate of GST on essential commodities is _____. **

**(A) 5% **

**(B) 12% **

**(C) 0% **

**(D) 18%**

**Ans:** Option (C) : 0%

**(2) The tax levied by the central government for trading within state is _____.**

**(A) IGST **

**(B) CGST **

**(C) SGST **

**(D) UTGST**

**Ans:** Option (B) : CGST

**(3) GST system was introduced in our country from m _____.**

**(A) 31st March 2017 **

**(B) 1st April 2017**

**(C) 1st January 2017 **

**(D) 1st July 2017**

**Ans:** Option (D) : 1st July 2017

**(4) The rate of GST on stainless steel utensils is 18%, then the rate of State GST is _____.**

**(A) 18% **

**(B) 9% **

**(C) 36% **

**(D) 0.9%**

**Ans:** Option (B) : 9%

**(5) In the format of GSTIN there are _____ alpha-numerals. **

**(A) 15 **

**(B) 10 **

**(C) 16 **

**(D) 9**

**Ans:** Option (A) : 15

**(6) When a registered dealer sells goods to another registered dealer under GST, then this trading is termed as _____.**

**(A) BB **

**(B) B2B **

**(C) BC **

**(D) B2C**

**Ans:** Option (B) : B2B

**2. A dealer has given 10% discount on a showpiece of ₹ 25,000. GST of 28% was charged on the discounted price. Find the total amount shown in the tax invoice. What is the amount of CGST and SGST ?**

**2. A dealer has given 10% discount on a showpiece of ₹ 25,000. GST of 28% was charged on the discounted price. Find the total amount shown in the tax invoice. What is the amount of CGST and SGST ?****Solution:**

**The price of an article = ₹ 25,000**

**Rate of discount = 10%**

**∴ Discount **

**= 10% of × 25000**

**= \(\large \frac {10}{100}\) × 25000**

**= ₹ 2500**

**Taxable value of an article **

**= 25000 – 2500**

**= ₹ 22500**

**Rate of GST = 28%**

**∴ Rate of CGST = Rate of SGST = 14%**

**∴ CGST **

**= 14% of ₹ 22,500**

**= \(\large \frac {14}{100}\) × 22500**

**= ₹ 3,150**

**∴ CGST = SGST = ₹ 3,150**

**∴ Total cost of an article **

**= Taxable price + CGST + SGST**

**= 22500 + 3150 +3150**

**= ₹ 28,800**

**Ans:** Total bill amount is ₹ 28800, CGST is ₹ 3150 and SGST is ₹ 3150

**3. A ready-made garment shopkeeper gives 5% discount on the dress of ₹ 1000 and charges 5% GST on the remaining amount, then what is the purchase price of the dress for the customer ? **

**3. A ready-made garment shopkeeper gives 5% discount on the dress of ₹ 1000 and charges 5% GST on the remaining amount, then what is the purchase price of the dress for the customer ?****Solution:**

**Price of a dress = ₹ 1000**

**Rate of discount = 5%**

**Discount **

**= 5% of ₹ 1000**

**= \(\large \frac {5}{100}\) × 1000**

**= ₹ 50**

**Taxable value of a dress **

**= 1000 – 50 **

**= ₹ 950**

**Rate of GST = 5%**

**Rate of CGST is 2.5% and rate of SGST is 2.5%**

**∴ CGST **

**= 2.5% of ₹ 950**

**= \(\large \frac {2.5}{100}\) × 950**

**= ₹ 23.75**

**∴ CGST = SGST = ₹ 23.75**

**.Total cost of the dress **

**= Taxable value + CGST + SGST**

**= 950 +23.75 + 23.75**

**= ₹ 997.50**

**Ans:** The customer has to pay ₹ 997.50 for the dress.

**4. A trader from Surat, Gujarat sold cotton clothes to a trader in Rajkot, Gujarat. The taxable value of cotton clothes is ₹ 2.5 lacs. What is the amount of GST at 5% paid by the trader in Rajkot?**

**4. A trader from Surat, Gujarat sold cotton clothes to a trader in Rajkot, Gujarat. The taxable value of cotton clothes is ₹ 2.5 lacs. What is the amount of GST at 5% paid by the trader in Rajkot?****Solution:**

**Taxable value of cotton clothes = ₹ 2.5 lacs**

**Rate of GST applicable = 5%**

**∴ GST **

**= 5% of ₹ 2.5 lacs**

**= \(\large \frac {5}{100}\) × 250000**

**= ₹ 12,500**

**Ans:** The GST to be paid by the businessman from Rajkot is ₹ 12,500.

**5. Smt. Malhotra purchased solar panels for the taxable value of ₹ 85,000. She sold them for ₹ 90,000. The rate of GST is 5%. Find the ITC of Smt. Malhotra. What is the amount of GST payable by her ?**

**5. Smt. Malhotra purchased solar panels for the taxable value of ₹ 85,000. She sold them for ₹ 90,000. The rate of GST is 5%. Find the ITC of Smt. Malhotra. What is the amount of GST payable by her ?****Solution:**

**Input tax (ITC) **

**= 5% of ₹ 85,000**

**= \(\large \frac {5}{100}\) × 85000**

**= ₹ 4250**

**Output tax **

**= 5% of × 90,000**

**= \(\large \frac {5}{100}\) × 90000**

**= ₹ 4500**

**∴ GST Payable **

**= Output Tax – ITC**

**= 4500 – 4250**

**= ₹ 250**

**Ans:** ITC is ₹ 4250 and GST payable is ₹ 250

**6. A company provided Z-security services for the taxable value of ₹ 64,500. Rate of GST is 18%. Company had paid GST of ₹ 1550 for laundry services and uniforms etc. What is the amount of ITC (input Tax Credit) ? Find the amount of CGST and SGST payable by the company. **

**6. A company provided Z-security services for the taxable value of ₹ 64,500. Rate of GST is 18%. Company had paid GST of ₹ 1550 for laundry services and uniforms etc. What is the amount of ITC (input Tax Credit) ? Find the amount of CGST and SGST payable by the company.****Solution:**

**Taxable value for security provided = ₹ 64,500**

**Rate of GST = 18%**

**Output tax**

**= 18% of ₹ 64,500**

**= \(\large \frac {18}{100}\) × 64500**

**= ₹ 11,610**

**GST paid by company for laundry services and uniform etc. = ₹ 1550**

**∴ ITC = ₹ 1550**

**∴ GST payable by the company **

**= Output tax – ITC**

**= 11610 – 1550**

**= ₹ 10,060**

**Now CGST = SGST = \(\large \frac {10060}{2}\) = ₹ 5030**

**Ans:** ITC for the company is ₹ 1550 and CGST is ₹ 5030 and SGST is ₹ 5030

**7. In an A.P. the first term is – 5 and last term is 45. If the sum of all numbers in the A.P. is 120, then how many terms are there? What is the common difference? **

**7. In an A.P. the first term is – 5 and last term is 45. If the sum of all numbers in the A.P. is 120, then how many terms are there? What is the common difference?****Solution:**

**Here, **

**t₁ = a = – 5, tₙ = 45, Sₙ = 120, n = ?, d = ?**

**Now,**

**Sₙ = \(\large \frac {n}{2}\) [t₁ + tₙ]**

**∴ 120 = \(\large \frac {n}{2}\) [– 5 + 45]**

**∴ 240 = n [40]**

**∴ n = \(\large \frac {240}{40}\)**

**∴ n = 6**

**tₙ = a + (n – 1)d**

**∴ 45 = – 5 + (6 – 1)d**

**∴ 45 = – 5 + 5d**

**∴ 45 + 5 = 5d**

**∴ 5d = 50**

**∴ d = \(\large \frac {50}{5}\)**

**∴ d = 10**

**Ans:** There are 6 terms in the A.P and the common difference is 10.

**7. A dealer supplied Walky-Talky set of ₹ 84,000 (with GST) to police control room. Rate of GST is 12%. Find the amount of state and central GST charged by the dealer. Also find the taxable value of the set. **

**7. A dealer supplied Walky-Talky set of ₹ 84,000 (with GST) to police control room. Rate of GST is 12%. Find the amount of state and central GST charged by the dealer. Also find the taxable value of the set.****Solution:**

**Rate of GST = 12%**

**If taxable value is ₹ 100, then total value including GST will be (100 + 12) = ₹ 112.**

**Similarly, if taxable value is ₹ x then total value including GST is ₹ 84,000.**

**∴ \(\large \frac {100}{x}\) = \(\large \frac {112}{84000}\)**

**∴ x = \(\large \frac {84000\,×\,100}{112}\)**

**∴ x = 75000 **

**Rate of GST = 12%**

**∴ Rate of CGST is 6% and rate of SGST is 6%**

**CGST **

**= 6% of ₹ 75000**

**= \(\large \frac {6}{100}\) × 75000**

**= ₹ 4500**

**∴ CGST = SGST = ₹ 4500**

**Ans:** The taxable value of Walky Talky sets is ₹ 75,000 and the amount of CGST is ₹ 4500 and SGST is ₹ 4500.

**8. A wholesaler purchased electric goods for the taxable amount of ₹ 1,50,000. He sold it to the retailer for the taxable amount of ₹ 1,80,000. Retailer sold it to the customer for the taxable amount of ₹ 2,20,000. Rate of GST is 18%. Show the computation of GST in tax invoices of sales. Also find the payable CGST and payable SGST for wholesaler and retailer. **

**8. A wholesaler purchased electric goods for the taxable amount of ₹ 1,50,000. He sold it to the retailer for the taxable amount of ₹ 1,80,000. Retailer sold it to the customer for the taxable amount of ₹ 2,20,000. Rate of GST is 18%. Show the computation of GST in tax invoices of sales. Also find the payable CGST and payable SGST for wholesaler and retailer.****Solution:**

**(i) For wholesaler:**

**Taxable amount of Electric goods = ₹ 1,50,000**

**Rate of GST = 18%**

**∴ Tax paid at the time of purchase (ITC) **

**= 18% of ₹ 1,50,000**

**= \(\large \frac {18}{100}\) × 150000**

**= ₹ 27,000**

**Tax collected at time of sale (Output tax)**

**= 18% of ₹ 1,80,000**

**= \(\large \frac {18}{100}\) × 180000**

**= ₹ 32,400**

**∴ CGST and SGST shown in the tax invoice of wholesaler **

**= \(\large \frac {32400}{2}\)**

**= ₹ 16,200**

**∴ GST payable by wholesaler **

**= Output tax – ITC**

**= ₹ 32,400 – ₹ 27,000**

**= ₹ 5400**

**CGST to be paid by wholeseller **

**= \(\large \frac {5400}{2}\) **

**= ₹ 2700**

**∴ CGST = SGST = ₹ 2700 is payable by wholeseller**

**(ii) For retailer:**

**Tax paid at the time of purchase (ITC) = ₹ 32,400**

**Tax collected at the time of sale (Output tax)**

**= 18% of ₹ 2,20,000**

**= \(\large \frac {18}{100}\) × 220000**

**= ₹ 39,600**

**∴ CGST and SGST shown in the tax invoice of retailer **

**= \(\large \frac {39600}{2}\)**

**= ₹ 19,800**

**GST payable by retailer **

**= Output tax – ITC**

**= ₹ 39,600 – ₹ 32,400**

**= ₹ 7200**

**CGST payable by wholeseller = \(\large \frac {7200}{2}\) = ₹ 3600**

**Ans:** CGST and SGST shown in the tax invoice of retailer is ₹ 19,800 and CGST is ₹ 3600 and SGST is ₹ 3600 payable by retailer

**9. Anna Patil (Thane, Maharashtra) supplied vacuum cleaner to a shopkeeper in Vasai (Mumbai) for the taxable value of ₹ 14,000, and GST rate of 28%. Shopkeeper sold it to the customer at the same GST rate for ₹ 16,800 (taxable value). Find the following –**

**9. Anna Patil (Thane, Maharashtra) supplied vacuum cleaner to a shopkeeper in Vasai (Mumbai) for the taxable value of ₹ 14,000, and GST rate of 28%. Shopkeeper sold it to the customer at the same GST rate for ₹ 16,800 (taxable value). Find the following –****(1) Amount of CGST and SGST shown in the tax invoice issued by Anna Patil. **

**(1) Amount of CGST and SGST shown in the tax invoice issued by Anna Patil.****(2) Amount of CGST and SGST charged by the shopkeeper in Vasai. **

**(2) Amount of CGST and SGST charged by the shopkeeper in Vasai.****(3) What is the CGST and SGST payable by the shopkeeper in Vasai at the time of filing the return.**

**(3) What is the CGST and SGST payable by the shopkeeper in Vasai at the time of filing the return.****Solution:**

**(1) All the transactions are done in Maharashtra.**

**For Anna Patil in Thane:**

**Taxable value of Vacuum Cleaner = ₹ 14,000**

**Rate of GST = 28%**

**∴ GST **

**= 28% of 14,000**

**= \(\large \frac {28}{100}\) × 14000**

**= ₹ 3920**

**∴ CGST (shown in the tax invoice of Anna Patil) = \(\large \frac {3920}{2}\) = ₹ 1960**

**Ans:** Amount of CGST and SGST shown in the tax invoice issued by Anna Patil is ₹ 1960.

**(2) For Shopkeeper in Vasai:**

**Input tax credit (ITC) for shopkeeper = ₹ 3920**

**Taxable value at which Vacuum cleaner sold to customer = ₹ 16,800**

**Rate of GST = 28%**

**∴ GST **

**= 28% of ₹ 16800**

**= \(\large \frac {28}{100}\) × 16800**

**= ₹ 4704**

**∴ CGST charged by shopkeeper **

**= \(\large \frac {4704}{2}\)**

**= ₹ 2352**

**Ans:**Amount of CGST and SGST charged by the shopkeeper in Vasai is ₹ 2352.

**(3) GST to be paid by shopkeeper at Vasai **

**= Output tax – ITC**

**= 4704 – 3920**

**= ₹ 784**

**∴ CGST to be paid by shopkeeper at **

**Vasai **

**= \(\large \frac {784}{2}\)**

**= ₹ 392**

**Ans:** CGST and SGST payable by the shopkeeper in Vasai at the time of filing the return is ₹ 392.

**10. For the given trading chain prepare the tax invoice I, II, III. GST at the rate of 12% was charged for the article supplied.**

**10. For the given trading chain prepare the tax invoice I, II, III. GST at the rate of 12% was charged for the article supplied.**

**(1) Prepare the statement of GST payable under each head by the wholesaler, distributor and retailer at the time of filing the return to the government. **

**(1) Prepare the statement of GST payable under each head by the wholesaler, distributor and retailer at the time of filing the return to the government.****(2) At the end what amount is paid by the consumer ?**

**(2) At the end what amount is paid by the consumer ?****(3) Write which of the invoices issued are B2B and B2C ?**

**(3) Write which of the invoices issued are B2B and B2C ?****Solution:**

**(1) GST collected by wholesaler at the time of sale(Output tax)**

**= 12% of ₹ 5000**

**= \(\large \frac {12}{100}\) × 5000**

**= 600**

** **

**∴ GST payable by distributor = ₹ 600**

** **

**GST collected by distributor at the time of sale (Output tax)**

**= 12% of ₹ 6000**

**= \(\large \frac {12}{100}\) × 6000**

**= ₹ 720**

** **

**∴ GST payable by distributor **

**= Output tax – ITC**

**= 720 – 600**

**= ₹ 120**

** **

**GST collected by retailer at the time of sale (Output tax)**

**= 12% of ₹ 6500**

**= \(\large \frac {12}{100}\) × 6500**

**= ₹ 780**

** **

**∴ GST payable by retailer **

**= Output tax – ITC**

**= 780 – 720**

**= ₹ 60**

** **

**(2) Price at which article sold to customer**

**= Taxable value + GST**

**= 6500 + 780**

**= ₹ 7280**

** **

**(3) The tax invoice between wholesaler and distributor is B2B type.**

**Also the tax invoice between distributor and retailer is B2B type.**

**The tax invoice between retailer and customer is B2C type.**

**Problem Set 4B**

**Problem Set 4B****1. Write the correct alternative for each of the following. **

**1. Write the correct alternative for each of the following.****(1) If the Face Value of a share is ₹ 100 and Market value is ₹75, then which of the following statements is correct ?**

**(A) The share is at premium of ₹ 175 **

**(B) The share is at discount of ₹ 25**

**(C) The share is at premium of ₹ 25 **

**(D) The share is at discount of ₹ 75 **

** **

**Ans:** Option (B) : The share is at discount of ₹ 25.

** **

**(2) What is the amount of dividend received per share of face value ₹ 10 and dividend declared is 50%. **

**(A) ₹ 50 **

**(B) ₹ 5 **

**(C) ₹ 500 **

**(D) ₹ 100 **

** **

**Ans:** Option (B) : ₹ 5

** **

**(3) The NAV of a unit in mutual fund scheme is ₹ 10.65 then find the amount required to buy 500 such units.**

**(A) 5325 **

**(B) 5235 **

**(C) 532500 **

**(D) 53250**

** **

**Ans:** Option (A) : 5325

** **

**(4) Rate of GST on brokerage is _____.**

**(A) 5% **

**(B) 12% **

**(C) 18% **

**(D) 28%**

** **

**Ans:** Option (C) : 18%

** **

**(5) To find the cost of one share at the time of buying the amount of Brokerage and GST is to be _____ the MV of share . **

**(A) added to **

**(B) subtracted from **

**(C) Multiplied with **

**(D) divided by **

** **

**Ans:** Option (A) : Added to

**2. Find the purchase price of a share of FV ₹ 100 if it is at premium of ₹ 30. The brokerage rate is 0.3%.**

**2. Find the purchase price of a share of FV ₹ 100 if it is at premium of ₹ 30. The brokerage rate is 0.3%.****Solution:**

**FV = ₹ 100 and Premium = ₹ 30**

**∴ MV **

**= FV + Premium**

**= 100 + 30**

**= ₹ 130**

**Brokerage per share **

**= 0.3% of ₹ 130**

**= \(\large \frac {0.3}{100}\) × 130**

**= ₹ 0.39**

**∴ Purchase price per share **

**= 130 + 0.39**

**= ₹ 130.39**

**Ans:** The purchase price of one share is ₹ 130.39

**3. Prashant bought 50 shares of FV ₹ 100, having MV ₹ 180. Company gave 40% dividend on the shares. Find the rate of return on investment.**

**3. Prashant bought 50 shares of FV ₹ 100, having MV ₹ 180. Company gave 40% dividend on the shares. Find the rate of return on investment.****Solution:**

**FV of share = ₹ 100**

**Dividend on one share **

**= 40% of ₹ 100**

**= \(\large \frac {40}{100}\) × 100**

**= ₹ 40**

**Dividend on 50 shares **

**= 50 × 40**

**= ₹ 2000**

**MV of share = ₹ 180**

**∴ Total investment **

**= 50 × 80**

**= ₹ 9000**

**∴ Rate of return **

**= \(\large \frac {Total \,dividend received}{Total\, investment}\) × 100**

**= \(\large \frac {2000}{9000}\) × 100**

**= 22.22 %**

**Ans:** Rate of return = 22.22%

**4. Find the amount received when 300 shares of FV ₹ 100, were sold at a discount of ₹ 30.**

**4. Find the amount received when 300 shares of FV ₹ 100, were sold at a discount of ₹ 30.****Solution:**

**FV of share = ₹ 100**

**Discount = ₹ 30**

**∴ MV **

**= FV – discount**

**= 100 – 30**

**= ₹ 70**

**∴ Market value of 1 share = ₹ 70**

**Total amount obtained by selling 300 shares**

**= 300 × 70 **

**= ₹ 21000**

** **

**Ans:** The amount obtained by selling 300 shares is ₹ 21,000.

**5. Find the number of shares received when ₹ 60,000 was invested in the shares of FV ₹ 100 and MV ₹ 120.**

**5. Find the number of shares received when ₹ 60,000 was invested in the shares of FV ₹ 100 and MV ₹ 120.****Solution:**

**MV of share = ₹ 120**

**Total investment = ₹ 60,000**

**∴ Number of shares**

**= \(\large \frac {Total\,investment}{MV}\)**

**= \(\large \frac {60000}{120}\)**

**= 500**

**Ans:** The number of shares purchased is 500

**6. Smt. Mita Agrawal invested ₹ 10,200 when MV of the share is ₹ 100. She sold 60 shares when the MV was ₹ 125 and sold remaining shares when the MV was ₹ 90. She paid 0.1% brokerage for each trading. Find whether she made profit or loss? and how much ?**

**6. Smt. Mita Agrawal invested ₹ 10,200 when MV of the share is ₹ 100. She sold 60 shares when the MV was ₹ 125 and sold remaining shares when the MV was ₹ 90. She paid 0.1% brokerage for each trading. Find whether she made profit or loss? and how much ?****Solution:**

**Amount invested by Mrs. Agarwal = ₹ 10,200**

**MV = ₹ 100**

**Brokerage per share **

**= 0.1% of ₹ 100**

**= \(\large \frac {0.1}{100}\) × 100**

**= ₹ 0.10**

**Purchase price per share **

**= MV + Brokerage**

**= 100 + 0.10**

**= ₹ 100.10**

**Number of shares purchased **

**= \(\large \frac {Amount\,invested}{Purchase\,price\,per\,share}\)**

**= \(\large \frac {10200}{100.10}\)**

**= 102 (approx.)**

**Number of shares sold at ₹ 125 per share = 60**

**∴ MV per share while selling 60 shares = ₹ 125**

**Brokerage per share **

**= 0.1% of ₹ 125**

**= \(\large \frac {0.1}{100}\) × 125**

**= ₹ 0.125**

**Total selling price per share **

**= MV – Brokerage**

**= 125 – 0.125**

**= ₹ 124.875**

**Amount received on selling 60 shares **

**= 60 × 124.875**

**= ₹ 7492.50**

**Remaining shares **

**= 102 – 60**

**= 42**

**MV per share while selling 42 shares = ₹ 90**

**Brokerage per share **

**= 0.1% of ₹ 90**

**= \(\large \frac {0.1}{100}\) × 90**

**= ₹ 0.09**

**Total selling price per share **

**= MV – brokerage**

**= 90 – 0.09**

**= ₹ 89.91**

**Amount received on selling 42 shares **

**= 42 × 89.91**

**= ₹ 3776.22**

**Net amount received **

**= Amount received on selling 60 shares + Amount received on selling 42 shares**

**= 7492.50 + 3776.22**

**= ₹ 11268.72**

**Here,**

**Net amount received > Amount invested**

**∴ There is a gain in the transaction.**

**Gain incurred **

**= Net amount received – Amount invested**

**= ₹ 11268.72 – ₹ 10200**

**= ₹ 1068.72**

**Ans:** Mrs. Agarwal made a profit of ₹ 1068.72

**7. Market value of shares and dividend declared by the two companies is given below. Face Value is same and it is ₹ 100 for both the shares. Investment in which company is more profitable ?**

**7. Market value of shares and dividend declared by the two companies is given below. Face Value is same and it is ₹ 100 for both the shares. Investment in which company is more profitable ?****(1) Company A – ₹132 , 12% **

**(1) Company A – ₹132 , 12%****(2) Company B – ₹144, 16%**

**(2) Company B – ₹144, 16%****Solution:**

**Suppose the amount invested in both the companies is ₹ 19,008 (i.e. ₹ 132 × ₹ 144)**

**For company A:**

**MV = ₹132**

**Dividend rate = 12%**

**Face value = ₹100**

**No of shares purchased**

**= \(\large \frac {Amount\,Invested}{MV}\)**

**= \(\large \frac {19008}{132}\)**

**= 144 **

**Dividend per share **

**= Face value × rate**

**= 100 × 12%**

**= 100 × \(\large \frac {12}{100}\) **

**= ₹ 12**

**Dividend on shares **

**= Dividend per share × No. of share**

**= 144 × 12**

**= ₹ 1728**

**For company B:**

**MV = ₹ 19008**

**Dividend rate = 16%**

**Face value = ₹100**

**No of shares purchased**

**= \(\large \frac {Amount\,Invested}{MV}\)**

**= \(\large \frac {19008}{144}\)**

**= 132 **

**Dividend per share **

**= Face value × rate**

**= 100 × 16%**

**= 100 × \(\large \frac {16}{100}\) **

**= ₹ 16**

**Dividend on shares **

**= Dividend per share × No. of share**

**= 16 × 132**

**= ₹ 2112**

**Now,**

**Company B gives more amount of dividend than company A**

**∴ Investment in company B is more profitable**

**7. A dealer supplied Walky-Talky set of ₹ 84,000 (with GST) to police control room. Rate of GST is 12%. Find the amount of state and central GST charged by the dealer. Also find the taxable value of the set. **

**7. A dealer supplied Walky-Talky set of ₹ 84,000 (with GST) to police control room. Rate of GST is 12%. Find the amount of state and central GST charged by the dealer. Also find the taxable value of the set.****Solution:**

**Rate of GST = 12%**

**If taxable value is ₹ 100, then total value including GST will be (100 + 12) = ₹ 112.**

**Similarly, if taxable value is ₹ x then total value including GST is ₹ 84,000.**

**∴ \(\large \frac {100}{x}\) = \(\large \frac {112}{84000}\)**

**∴ x = \(\large \frac {84000\,×\,100}{112}\)**

**∴ x = 75000 **

**Rate of GST = 12%**

**∴ Rate of CGST is 6% and rate of SGST is 6%**

**CGST **

**= 6% of ₹ 75000**

**= \(\large \frac {6}{100}\) × 75000**

**= ₹ 4500**

**∴ CGST = SGST = ₹ 4500**

**Ans:** The taxable value of Walky Talky sets is ₹ 75,000 and the amount of CGST is ₹ 4500 and SGST is ₹ 4500.

**8. Shri. Aditya Sanghavi invested ₹ 50,118 in shares of FV ₹ 100, when the market value is ₹ 50. Rate of brokerage is 0.2% and Rate of GST on brokerage is 18%, then How many shares were purchased for ₹ 50,118 ?**

**8. Shri. Aditya Sanghavi invested ₹ 50,118 in shares of FV ₹ 100, when the market value is ₹ 50. Rate of brokerage is 0.2% and Rate of GST on brokerage is 18%, then How many shares were purchased for ₹ 50,118 ?****Solution:**

**Market value of share = ₹ 50**

**Brokerage = 0.2%**

**Brokerage per share **

**= 0.2% of ₹ 50**

**= \(\large \frac {0.2}{100}\) × 50**

**= ₹ 0.10**

**GST on brokerage per share **

**= 18% of ₹ 0.10**

**= \(\large \frac {18}{100}\) × 50**

**= ₹ 0.018**

**Total purchase price per share **

**= Market value + Brokerage + GST**

**= 50 + 0.10 + 0.018**

**= ₹ 50.118**

**Number of shares purchased **

**= \(\large \frac {Amount\,Invested}{Purchase\,price\,per\,share}\)**

**= \(\large \frac {50118}{50.118}\)**

**= 1000**

**Ans:** Mr. Sanghvi purchased 1000 shares.

**9. Shri. Batliwala sold shares of ₹ 30,350 and purchased shares of ₹ 69,650 in a day. He paid brokerage at the rate of 0.1% on sale and purchase. 18% GST was charged on brokerage. Find his total expenditure on brokerage and tax. **

**9. Shri. Batliwala sold shares of ₹ 30,350 and purchased shares of ₹ 69,650 in a day. He paid brokerage at the rate of 0.1% on sale and purchase. 18% GST was charged on brokerage. Find his total expenditure on brokerage and tax.****Solution:**

**Shri Batliwala sold shares of ₹ 30,350**

**Brokerage paid while selling shares **

**= 0.1% of ₹ 30,350**

**= \(\large \frac {0.1}{100}\) × 30350**

**= ₹ 30.35**

**GST paid while selling shares **

**= 18% of ₹ 30.35**

**= \(\large \frac {18}{100}\) × 30.35**

**= ₹ 5.463**

**Also, he purchased shares of ₹ 69,650**

**Brokerage paid while purchasing shares **

**= 0.1% of ₹ 69,650**

**= \(\large \frac {0.1}{100}\) × 69650**

**= ₹ 69.65**

**GST paid while purchasing shares **

**= 18% of ₹ 69.65**

**= \(\large \frac {18}{100}\) × 69.65**

**= ₹ 12.537**

**Total brokerage paid in this transaction**

**= 30.35 + 69.65**

**= ₹ 100**

**Total GST paid in this transaction **

**= 5.463 + 12.537**

**= ₹ 18**

**Total expenditure on brokerage and tax **

**= 100 + 18 **

**= ₹ 118**

**Ans:** Total expenditure on brokerage and tax is ₹ 118.

**10. Smt. Aruna Thakkar purchased 100 shares of FV 100 when the MV is ₹ 1200. She paid brokerage at the rate of 0.3% and 18% GST on brokerage.**

**10. Smt. Aruna Thakkar purchased 100 shares of FV 100 when the MV is ₹ 1200. She paid brokerage at the rate of 0.3% and 18% GST on brokerage.****Find the following –**

**(1) Net amount paid for 100 shares.**

**(1) Net amount paid for 100 shares.****(2) Brokerage paid on sum invested.**

**(2) Brokerage paid on sum invested.****(3) GST paid on brokerage.**

**(3) GST paid on brokerage.****(4) Total amount paid for 100 shares.**

**(4) Total amount paid for 100 shares.****Solution:**

**MV = ₹ 1200 and number of shares purchased = 100**

**∴ Net amount paid for 100 shares **

**= 1200 × 100**

**= ₹ 1,20,000**

**Brokerage = 0.3%**

**Brokerage per share **

**= 0.3% of ₹ 1200**

**= \(\large \frac {0.3}{100}\) × 1200**

**= ₹ 3.6**

**∴ Brokerage on 100 shares **

**= 100 × 3.6**

**= ₹ 360**

**GST per share **

**= 18% of ₹ 3.6**

**= \(\large \frac {18}{100}\) × 3 6.**

**= ₹ 0.648**

**GST on 100 shares **

**= 100 × 0.648**

**= ₹ 64.80**

**Total purchase price per share **

**= MV + brokerage + GST**

**= 1200 + 3.6 + 0.648**

**= ₹ 1204.248**

**Total purchase price of 100 shares **

**= 100 × 1204.248**

**= ₹ 1,20,424.80**

**Ans: **

**(1) Net amount paid for 100 shares is ₹ 1,20,000.**

**(2) Brokerage paid on sum invested is ₹ 360.**

**(3) GST paid on brokerage is ₹64.80.**

**(4) Total amount paid for 100 shares is ₹ 1,20,424.80**

**11. Smt. Anagha Doshi purchased 22 shares of FV ₹ 100 for Market Value of ₹ 660. Find the sum invested. After taking 20% dividend, she sold all the shares when market value was ₹ 650. She paid 0.1% brokerage for each trading done. Find the percent of profit or loss in the share trading. (Write your answer to the nearest integer.)**

**11. Smt. Anagha Doshi purchased 22 shares of FV ₹ 100 for Market Value of ₹ 660. Find the sum invested. After taking 20% dividend, she sold all the shares when market value was ₹ 650. She paid 0.1% brokerage for each trading done. Find the percent of profit or loss in the share trading. (Write your answer to the nearest integer.)****Solution:**

**Number of shares purchased = 22**

**MV = ₹ 660**

**∴ Brokerage per share **

**= 0.1% of ₹ 660**

**= \(\large \frac {0.1}{100}\) × 660**

**= ₹ 0.66**

**Purchase price per share **

**= MV + Brokerage**

**= 660 + 0.66**

**= ₹ 660.66**

**Purchase price of 22 shares **

**= 22 × 660.66**

**= ₹ 14534.52**

**FV = ₹ 100**

**Dividend per share **

**= 20% of ₹ 100**

**= \(\large \frac {20}{100}\) × 100**

**= ₹ 20**

**∴ Dividend on 22 shares **

**= 22 × 20**

**= ₹ 440**

**MV per share while selling = ₹ 650**

**Brokerage per share**

**= 0.1% of ₹ 650 **

**= \(\large \frac {0.1}{100}\) × 650**

**= ₹ 0.65**

**Total selling price per share **

**= MV – Brokerage**

**= 650 – 0.65**

**= ₹ 649.35**

**Total selling price of 22 shares**

**= 22 × 649.35**

**= ₹ 14,285.70**

**Amount invested = ₹ 14,534.52 **

**Total amount received **

**= Dividend + Selling Price**

**= 440 + 14285.70 **

**= ₹ 14,725.70**

**∴ Amount received > Amount invested**

**∴ There is a profit in the transaction **

**Profit **

**= Amount received – Amount invested**

**= 14725.70 – 14534.52**

**= ₹ 191.18**

**Profit percent **

**= \(\large \frac {Profit}{Amount\,invested}\) × 100**

**= \(\large \frac {191.18}{14534.52}\)**

**= 1.32 ≈ 1% (approx)**

**Profit percent = 1%**

**Ans:** Mrs. Anagha Doshi invested ₹ 14,534.52 and got profit of 1%.