Q6 A manufacturer buys raw material worth 7500 paying GST at the rate of 5%. He sells the finished product to a dealer at 40% profit. If the purchase and the sale both are intra-state and the rate of GST for the finished product is 12%, find:

1. the input tax (under GST) paid by the manufacturer.
2. the output tax (under GST) collected by the manufacturer.
3. the tax (under GST) paid by the manufacturer to the Central and State Goverments.
4. the amount paid by the dealer for the finished product

Solution

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