Question

For a transaction, MRP = ₹14,000, discount = 20%, and CGST = 9%. Within a state, the amount of CGST is equal to:

[1 Mark]

• A. ₹808
  
• B. ₹1,008
• C. ₹1,108
• D. ₹1,208

Answer 1

The correct option is B ₹1,008

$\text{Given,}$

$\text{MRP = ₹14,000}$

$\text{Discount = 20\%}$

$\text{CGST = 9\%}$

Discount $=20\%$ of $₹14,000$
$=\frac{20}{100}\times 14000=₹2,800$

Discounted value $=14000-2800=₹11,200$

$\text{CGST = 9\% of ₹ 11,200}$$=\frac{9}{100}\times 11200=₹1,008$