Is it correct to say: Calculating dividend on the market value?

Dividend = rate × FACE value. The market value is used only for the cost of the shares and the rate of return.

Is it correct to say: Calculating brokerage on the face value?

Brokerage is a percentage of the MARKET value of the share.

Is it correct to say: Taking GST on brokerage as 18% of the market value?

GST is 18% of the brokerage amount only. E.g. brokerage Rs 0.50 gives GST Rs 0.09.

Is it correct to say: Adding brokerage and GST when shares are SOLD?

Buying: MV + brokerage + GST. Selling: MV − brokerage − GST.

Is it correct to say: Splitting IGST into two halves?

Only intra-state GST is split into CGST and SGST. Inter-state supply carries the full rate as IGST.

Is it correct to say: Charging GST on the marked price when a discount is given?

Subtract the discount first; GST is charged on the discounted (taxable) value.

📄 Formula sheet (PDF)

Financial Planning

GST (CGST, SGST, IGST), tax invoice, input tax credit, shares, face value and market value, dividend, brokerage with GST, rate of return and mutual funds — Maharashtra SSC Std X Algebra Ch 4

📐 18 formulas✏️ 4 examples🎯 6 practice🏫 Maharashtra State Board📚 Class 10✓ 2025–26 syllabus

💡

Board Exam Tips

→Always use the GST rate given in the question. The textbook's rate chart lists 0%, 5%, 12%, 18% and 28%, and notes that GST rates are subject to change.
→Sale within a state: split the GST equally into CGST and SGST. Sale to another state: charge the full rate as IGST — do not split it.
→Dividend is always on the face value (FV); brokerage is always on the market value (MV); GST on brokerage is 18% of the brokerage, not of the MV.
→Work out the purchase (or sale) value of ONE share first, then multiply by the number of shares.
→In input tax credit questions, write output tax, input tax and GST payable on separate lines, then split the payable amount into CGST and SGST.

📐 Formulas(18)

GST on a Supply★ Board fav

GST = \frac{GST rate}{100} \times Taxable value

Intra-State Supply: CGST and SGST★ Board fav

CGST rate = SGST rate = \frac{GST rate}{2}

Inter-State Supply: IGST

IGST = \frac{GST rate}{100} \times Taxable value

Total Amount of a Tax Invoice

Total = Taxable value + CGST + SGST

Taxable Value After Discount

Taxable value = Marked price - Discount

Taxable Value from the Total Amount

Taxable value = \frac{100 \times Total amount}{100 + GST rate}

Input Tax Credit (ITC)★ Board fav

GST payable = Output tax - Input tax (ITC)

Shares at Premium, at Par, at Discount

MV > FV : premium, MV = FV : at par, MV < FV : discount

Symbol	Meaning
$FV$	Face value of a share (printed value, Rs)
$MV$	Market value of a share (price on the stock market, Rs)

Dividend per Share★ Board fav

Dividend per share = \frac{Rate of dividend}{100} \times FV

Total Dividend

Total dividend = Number of shares \times Dividend per share

Number of Shares Bought

Number of shares = \frac{Total investment}{MV of one share}

Brokerage

Brokerage = \frac{Rate of brokerage}{100} \times MV

GST on Brokerage

GST on brokerage = \frac{18}{100} \times Brokerage

Purchase Value of a Share★ Board fav

Purchase value = MV + Brokerage + GST

Sale Value of a Share

Sale value = MV - Brokerage - GST

Rate of Return★ Board fav

Rate of return = \frac{Income (dividend)}{Investment} \times 100

Profit or Loss on Shares

Profit = Total sale value - Total purchase value

Units of a Mutual Fund

Number of units = \frac{Amount invested}{NAV per unit}

✏️ Solved Examples

1Solved Exampleeasy3 steps

A shopkeeper in Pune sells a mixer to a customer in Pune. The taxable value is Rs 3500 and the rate of GST is 12%. Find the CGST, SGST and the total amount on the tax invoice.

Both are in the same state, so GST is split: CGST 6% and SGST 6%.

CGST = \frac{6}{100} \times 3500 = 210

2Solved Exampleboard4 steps

A wholesaler in Maharashtra buys goods of taxable value Rs 40,000 and sells them to a retailer in Maharashtra for a taxable value of Rs 50,000. The rate of GST is 18%. Find the GST payable by the wholesaler, and the CGST and SGST payable.

Input tax = GST paid on purchase.

Input tax = \frac{18}{100} \times 40000 = 7200

3Solved Exampleboard4 steps

Sneha buys 200 shares of face value Rs 10 at a market value of Rs 250 each. Brokerage is 0.2% and GST on brokerage is 18%. Find the total amount she pays.

Brokerage on one share (on MV).

Brokerage = \frac{0.2}{100} \times 250 = 0.50

4Solved ExampleHOTS5 steps

Mr Joshi has Rs 24,000 to invest. Option A: shares of FV Rs 100 at MV Rs 120 paying 15% dividend. Option B: shares of FV Rs 10 at MV Rs 25 paying 30% dividend. Ignoring brokerage, find the dividend income and the rate of return in each case. Which option is better?

Option A: number of shares and dividend per share (on FV).

\frac{24000}{120} = 200 shares, \frac{15}{100} \times 100 = 15 per share

⚠️ Traps & Common Mistakes

⚠️Common Mistakes6

1
Calculating dividend on the market value
✓Dividend = rate × FACE value. The market value is used only for the cost of the shares and the rate of return.
2
Calculating brokerage on the face value
✓Brokerage is a percentage of the MARKET value of the share.
3
Taking GST on brokerage as 18% of the market value
✓GST is 18% of the brokerage amount only. E.g. brokerage Rs 0.50 gives GST Rs 0.09.
4
Adding brokerage and GST when shares are SOLD
✓Buying: MV + brokerage + GST. Selling: MV − brokerage − GST.
5
Splitting IGST into two halves
✓Only intra-state GST is split into CGST and SGST. Inter-state supply carries the full rate as IGST.
6
Charging GST on the marked price when a discount is given
✓Subtract the discount first; GST is charged on the discounted (taxable) value.

🎯 Practice Yourself

🎯Practice Yourself6 questions

Q1
A dealer in Gujarat sells goods of taxable value Rs 12,000 to a dealer in Maharashtra. The rate of GST is 28%. Find the IGST and the total amount of the invoice.
Q2
The price of a watch including 18% GST is Rs 5900. Find its taxable value and the GST.
Q3
The marked price of a bag is Rs 2000. The shopkeeper gives a 10% discount and charges 12% GST (intra-state). Find the CGST, SGST and the amount the customer pays.
Q4
A trader buys goods for Rs 15,000 plus 5% GST and sells them within the state for Rs 18,000 plus 5% GST. Find the GST payable by the trader and the CGST and SGST payable.
Q5
Rohan sells 100 shares at a market value of Rs 1200 each. Brokerage is 0.1% and GST on brokerage is 18%. How much does he receive?
Q6
Priya buys 50 shares of FV Rs 10 at MV Rs 40 (ignore brokerage). The company declares a 30% dividend. Find her dividend income and rate of return.

📝 Notes

Financial Planning

This chapter has two halves: GST, the tax on the supply of goods and services, and investment in shares and mutual funds. Both are mostly percentage calculations; the marks are lost on which amount the percentage is applied to.

GST in one picture

GST was introduced in India from 1 July 2017. Every registered dealer has a 15-character GSTIN; its first two digits are the state code (27 for Maharashtra).
A tax invoice shows the GSTIN, invoice number and date, HSN code (goods) or SAC (services), taxable value and the tax.
Within a state: GST = CGST + SGST, each at half the rate.
Between states: the full rate is charged as IGST.

Input tax credit

In a supply chain (manufacturer → wholesaler → retailer → consumer), each trader pays the government only on the value added: GST payable = output tax − input tax. When every stage uses the same rate, the total GST the government receives from all the stages equals the GST paid by the final consumer.

Shares: FV, MV, dividend, brokerage

Remember three "on what?" rules:

Dividend is calculated on the face value (FV).
Brokerage is calculated on the market value (MV).
GST on brokerage (18%) is calculated on the brokerage.

Buying adds brokerage and GST to the MV; selling subtracts them. The rate of return compares the dividend income with the money actually invested, which is why a share with a high dividend rate can still give a low return if its MV is far above its FV.