Q) Ashraf went to see a movie. He wanted to purchase a movie ticket for Rs. 80. As the ticket for Rs. 80 was not available he purchased a ticket for Rs. 120 of upper class. How much extra GST did he pay for the ticket? (GST for a ticket below Rs. 100 is 18% and GST for a ticket above Rs. 100 is 28%)

Ans: 

Step 1: Cost of movie ticket (planned) = Rs. 80

Applicable GST = 18%

∴ Amount paid in GST = Cost of ticket x GST

= 80 x 18% = Rs. 14.40

Step 2: Cost of movie ticket (purchased) = Rs. 120

Applicable GST = 28%

∴ Amount paid in GST = 120 x 28%

= Rs. 33.60

Step 3: The extra GST amount paid = GST paid for actually purchase ticket – GST to be paid for planned ticket

= 33.60 – 14.40 = 19.20

Therefore, Rs. 19.20 is paid extra in the GST

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