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Question

# The Marked Price of an article is ₹50,000. A wholeseller 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%, find the amount of GST(in ₹) paid by the dealer.1620

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Solution

## The correct option is A 1620Marked Price of the article = ₹50,000 Discount = 10% Cost price for the dealer = ₹50,000 - (10% of ₹50,000) = ₹45000 Now, dealer sells it at a profit of 20% to a customer. Cost price for customer = ₹45000 + (20% of ₹45000) = ₹54000 Given that GST rate at every stage is 18%. ∴ Amount of GST paid by the dealer = GST collected by the dealer (Input Tax Credit, ITC) - GST paid by the dealer while purchasing = 18% of (₹54000−₹45000) =18% of ₹9000 =18100×9000 =₹1620

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