Class 10 Maths Chapter 1
Goods and Service Tax (GST)
Important Questions

Class 10 Mathematics Chapter 1, ‘Goods and Service Tax’ is a tax that the Government charges when you buy things (goods) or use services. We provide the important questions related to class 10 Goods and service tax. These questions are very helpful to practice for class tests, unit tests, and exams.  These questions are a valuable tool to boost students' confidence in their mathematical abilities. They are designed to address any doubts or difficulties students may face while studying this topic. By engaging with these questions, students can enhance their understanding of this essential mathematical concept, making it easier for them to excel in their Class 10 Mathematics exams. So, let's delve into important questions on gst class 10 ICSE  2023 questions and start the journey toward academic success!

Introduction

In the chapter GST  class 10 icse 2023, Goods and Service Tax is a taxation system introduced in India to replace several different taxes with a single, unified tax. GST is applied when you buy goods (physical items) or use services (like getting your hair cut or ordering food at a restaurant). GST as we study in  class 10 good and services tax replaces many different taxes that were applied to goods and services. It makes the tax system simpler. In your class 10 good and services tax chapter  you will learn more about how to calculate GST, understand the different tax rates, and analyze the impact of GST on prices and the economy. Knowing about GST is not only useful for your exams but also for understanding the economic system around you.

What are Goods and Service Tax?

"GST, or Goods and Services Tax, as we study in GST class 10 icse 2023 is a single, comprehensive tax system introduced in India to replace multiple indirect taxes. It applies when you buy goods or use services and is designed to simplify the tax structure. GST is calculated on the value added at each stage of production and distribution, with different tax rates for different items. Businesses can benefit from Input Tax Credit by offsetting the tax they paid on purchases. It's an essential concept to understand in the world of taxation and economics."GST is computed based on the value added at each stage of the production and distribution process, and it features varying tax rates for different categories of items. Businesses can gain an advantage through Input Tax Credit, which allows them to offset the taxes they've paid on their purchases. Understanding GST is fundamental in the realms of taxation and economics.

Class 10 Goods and Service Tax Important Questions and Answers

Q1. Let P, Q, and R be three traders in different states. Trader A sells some goods to Trader B for ₹ 1,000. Trader B sells the same goods to Trader C for ₹ 1,500. If the rate of GST is 18%, then the tax liability of trader B is .........................

Options

(a) ₹ 90
(b) ₹ 120
(c) ₹ 150
(d) ₹ 200

Ans. (a) ₹ 90

Explanation:
C.P. for trader B = ₹ 1,000        
S.P  for trader B = ₹ 1,500
Since the transaction is inter-state,
∴ Tax liability on B
= Output IGST - Input IGST
= 18% of  ₹ 1,500 - 18% of  ₹ 1,000
=  ₹ 270 -  ₹ 180
=  ₹ 90.

Q2. Shashi buys goods worth ₹ 7,000 from a grocery store. Since she has a membership card, she gets a discount of 15% on ₹ 5,000. If the GST charged is 18%, then the total amount she has to pay for the goods is:

Options

(a) ₹ 4,362.50
(b) ₹ 6,363.50
(c) ₹ 6,306.25
(d) ₹ 7,375

Ans. (d) ₹ 7,375

Explanation:
Total discounted price 
= ₹ [2,000 + (5,000 - 15% of 5,000)]
= ₹ [2,000 + 4,250]
= ₹ 6,250
∵ GST rate = 18% 
∴ CGST =SGST = 9% of ₹ 6,250
= ₹ 562.50
∴ Total amount Shashi has to pay
= ₹ 6,250 +₹ 562.50 + ₹ 562.50
= ₹ 7,375.

Q3. A wholesaler buys a TV from the manufacturer for ₹ 25,000. He marks the price of the TV 20% above his cost price and sells it to a retailer at a 10% discount on the marked price. If the rate of GST is 8%, Find the:
(i) marked price.
(ii) retailer’s cost price inclusive of tax.
(iii) GST paid by the wholesaler.

Explanation:
Sol. Given, wholesaler’s C.P. of a T.V.
= ₹ 25,000
(i) Marked price of a T.V.
= ₹ 25,000 + 20% of ₹ 25,000
= ₹ 25,000 + ₹ 5,000
= ₹ 30,000. Ans.

(ii) Discount = 10% of ₹ 30,000
\(= 30.000 ×\frac{10}{100}×₹30,000\)
Discount price
= ₹ 30,000 – ₹ 3,000
= ₹ 27,000
Tax for the wholesaler
= 8% of 27,000
= ₹ 2160
Retailer’s C.P. (Inclusive of all taxes)
= ₹ 27,000 + ₹ 2160
= ₹ 29,160. Ans.

(iii) Amount of GST to be paid by the wholesaler
= Tax on the value added by the wholesaler
= 8% of ₹ ( 27,000 – 25,000 )
\(=\frac{8}{100}×2000\)
= ₹ 160. Ans

Q4. Shyam went to watch a movie. He wanted to purchase a movie ticket for ₹ 90. As the ticket for ₹ 90 was not available, he purchased a ticket for ₹ 140 of the upper class.How much extra GST did he pay for the ticket if the GST for a ticket below ₹ 100 is 18% and the GST for a ticket above ₹ 100 is 28%?

Explanation:
According to the question,
GST on ticket of ₹ 90 = 18% of 90
\(=\frac{18}{100}×90\)
= ₹ 16.20
GST on ticket of ₹ 140= 28% of 140
\(=\frac{28}{100}×140\)
= ₹ 39.20
Difference between both GST = 39.20 - 16.20
= ₹ 23.00

Q5. Goods/Services are sold from Agra (U.P.) to Kanpur (U.P.) for ₹20,000 and then from Kanpur to Jaipur (Rajasthan). If the rate of GST is 18% and the profit made at Kanpur is ₹5,000 find: 
(a) The net GST payable by the dealer at Kanpur. 
(b) The cost of goods/services at Jaipur.

Explanation:
When the product is sold from Agra to Kanpur (intra - state transaction) :
For dealer in Agra:
S.P = ₹ 20,000
CGST = 9% of ₹ 20,000 = ₹ 1,800
SGST = 9% of ₹ 20,000 = ₹ 1,800
When product is sold from Kanpur to Jaipur (inter-state transaction):
For the dealer in Kanpur:
Input tax credit = ₹ 1,800 + ₹ 1,800 = ₹ 3,600
C.P = ₹ 20,000 and Profit = ₹ 5,000
S.P = ₹ 20,000 + ₹ 5,000 = ₹ 25,000
IGST = 18% of 25,000 = ₹ 4,500
Net GST paid by the dealer at Kanpur
= Output GST – Input GST
= 4,500 – 3,600 = ₹ 900
The cost of goods/services at Jaipur
= S.P in Kanpur + IGST
= 25,000 + 18% of 25,000
= 25,000 + 4,500 = ₹ 29,500

ICSE Class 10 Maths Chapter wise Important Questions

Conclusion

"Goods and Services Tax (GST) is a fundamental topic within the ICSE Class 10 Mathematics curriculum and carries substantial relevance in practical scenarios. It represents a consolidated tax system implemented in India to streamline and simplify the taxation framework by replacing a multitude of indirect taxes. If you seek additional practice and a deeper comprehension of the topics covered in the chapter, oswal.io offers an extensive array of questions on important questions on gst class 10 ICSE 2023 to facilitate a more profound understanding of the concepts.

Frequently Asked Questions

Q1 : What is GST?

Ans: GST stands for Goods and Services Tax. It's a unified tax system that replaces several indirect taxes in India.

Q2 : Why was GST introduced?

Ans:  GST was introduced to simplify the tax structure, reduce tax evasion, and create a more transparent tax system.

Q3 : How has GST affected the Indian economy?

Ans: GST has streamlined the tax system, boosted the formalization of the economy, and simplified inter-state trade.

Q4 : What is the Central Goods and Services Tax (CGST)?

Ans: CGST is a tax levied by the Central Government of India on the supply of goods and services within a state.
The revenue generated from CGST goes to the Central Government's coffers. For example, when you purchase goods or services within your state, a part of the GST you pay is CGST.

Q5 : What is the State Goods and Services Tax (SGST)?

Ans: SGST is a tax imposed by individual state governments on the supply of goods and services within their respective states.
The revenue collected from SGST stays within the state and is utilized by the state government for various purposes. It's important to note that the rates of CGST and SGST are usually the same, and they are applied on the same base (the transaction value).