The Marked Price of an article is ₹50,000. A wholesaler sells it to a dealer at 10% discount. The dealer further sells it to a customer at 20% profit. If the rate of GST at each stage is 18%, the amount of GST paid by the dealer is ₹_____.
The Marked Price of an article is ₹50,000. A wholesaler sells it to a dealer at 10% discount. The dealer further sells it to a customer at 20% profit. If the rate of GST at each stage is 18%, the amount of GST paid by the dealer is ₹_____.
The correct option is A 1,620
Marked price of the article = ₹50,000
DIscount (available for dealer) = 10%
Cost price for the dealer = Marked price of the article - DIscount
= ₹50,000 - (10% of ₹50,000)
= ₹50,000 - 10100×₹50,000
= ₹45,000
Now, the dealer sells it at a profit of 20% to a customer.
Cost price for customer
= ₹45,000 + (20% of ₹45,000)
= 45,000 + 20100×45,000
= ₹54,000
Given that GST rate at every stage is 18%.
∴ Amount of GST paid by the dealer
= GST collected by the dealer (while selling) - GST paid by the dealer(while purchasing)
= 18% of ₹54,000 - 18% of ₹45,000
= 18% of (₹54,000 - ₹45,000)
= 18% of ₹9,000
= 18100×9000
= ₹1,620
Marked price of the article = ₹50,000
DIscount (available for dealer) = 10%
Cost price for the dealer = Marked price of the article - DIscount
= ₹50,000 - (10% of ₹50,000)
= ₹50,000 - 10100×₹50,000
= ₹45,000
Now, the dealer sells it at a profit of 20% to a customer.
Cost price for customer
= ₹45,000 + (20% of ₹45,000)
= 45,000 + 20100×45,000
= ₹54,000
Given that GST rate at every stage is 18%.
∴ Amount of GST paid by the dealer
= GST collected by the dealer (while selling) - GST paid by the dealer(while purchasing)
= 18% of ₹54,000 - 18% of ₹45,000
= 18% of (₹54,000 - ₹45,000)
= 18% of ₹9,000
= 18100×9000
= ₹1,620
