Question

For a dealer A, the list price of an article is Rs. 9000, which he sells to dealer B at some lower price. Further, dealer B sells the same article to a customer at its list price. If the rate of GST is 18% and dealer B paid a tax, under GST, equal to Rs. 324 to the government, find the amount (inclusive of GST) paid by dealer B?

Answer 1

Let dealer $A$ sell to dealer $B$ at $Rs,x$ lower price.
Then from the question,
Net Tax paid by dealer B is
$$\begin{array}{cc}& \Rightarrow \text{Output tax}-\text{Input Tax}=\text{Rs.}324\\ & \Rightarrow 18\%\text{of}9000-18\%\text{of}(9000-x)=324\\ & \Rightarrow 1620-1620+18\%\text{of}x=324\\ & \Rightarrow 18\%\text{of}x=324\\ & \Rightarrow x=1800\end{array}$$
Therefore, the selling price of $B=9000-1800=$ Rs. 7200
And,
The amount (inclusive of GST) paid by dealer B
$$\begin{array}{cc}& =7200+18\%\text{of}7200\\ & =7200+1296\end{array}$$
= Rs. 8496