The price of a sewing machine is Rs.40000.The wholesaler allows a discount of 10% on it to the shopkeeper. The shopkeeper sells the sewing machine to a customer at a discount of 5% on the marked price. GST is charged at the rate of 28% .The sales are intra-state. Find the GST paid by the wholesaler to the state government.
A lot of sites are telling me that the SGST paid by the wholesaler is Rs. 5600
But that doesn't make any sense. Firstly, we don't know if the cost price of the article is Rs 40000. That is just the marked price. Realistically, the wholesaler bought it at a slightly lower price (let's say Rs 35000), and marked it up to Rs 40,000. Secondly, even if we were to take the cost price as Rs 40,000 (which is wrong in my opinion), the SGST paid by the wholesaler would be 14/100*(40000 - 36000) which is Rs 560.
Ideally, the GST for the wholesaler should be taken on the selling price, as that is the only concrete information we have. So it should be 14/100*36000 = Rs 5040. So how is the answer still Rs 5600?