Description

This chapter focuses on applying mathematical concepts to understand and calculate Goods and Services Tax (GST) in everyday transactions. Here’s a breakdown of the essential topics and some example problems:

Concepts:

• Understanding Taxes: Briefly revisits concepts like Sales Tax and Value Added Tax (VAT) and how GST is different.
• GST Rates: Explains the concept of a single tax rate (GST) replacing multiple taxes. You might learn about CGST (Central GST) and SGST (State GST) for intra-state transactions and IGST (Integrated GST) for inter-state transactions.
• Calculating GST: You’ll learn formulas to calculate GST on various scenarios, including:

  • Finding GST amount when price and GST rate are given.
  • Calculating final bill amount considering discounts and GST.
  • Determining selling price when cost price and GST rate are known (and vice versa).

• Discounts and GST: Learn how to handle discounts and then apply GST on the final amount after discount.

Sample Problems:

1. The Marked Price (MRP) of a shirt is Rs. 1000. If the GST rate is 18%, find the amount of CGST and SGST each.

   • Solution: Here, GST rate is split into CGST (18%/2 = 9%) and SGST (9%).
   • CGST amount = Rs. (1000 * 9/100) = Rs. 90
   • SGST amount = Rs. (1000 * 9/100) = Rs. 90

2. A pen has a discount of 10% on its MRP of Rs. 50. If GST rate is 12%, calculate the final bill amount.

   • Solution: First find the discounted price (Rs. 50 * (100 – 10)% = Rs. 45)
   • Then calculate GST on the discounted price (Rs. 45 * 12/100 = Rs. 5.40)
   • Final bill amount = Rs. (45 + 5.40) = Rs. 50.40