Question

The marked price of an article is ₹9000 and rate of GST on it is 18%. A shopkeeper buys this article at a reduced price and sells it at its marked price.
If the shopkeeper pays ₹162 as CGST to the government as part of his net tax liability, find the amount (excluding GST) paid (in ₹) by the shopkeeper for the article.

• A. 7200
• B. 7500
• C. 7800
• D. 8100

Answer 1

The correct option is A 7200

Let the shopkeeper buys the article at ₹x
For the shopkeeper CP = ₹x and SP = ₹9000

CGST paid by him to the government = ₹162
SGST paid by him to the government = ₹162

Total GST paid by him to the government = SGST + CGST = ₹162 + ₹162 = ₹324

Output GST - Input GST = ₹324
18% of ₹9000 - 18% of ₹x = 324

$\frac{18}{100}\times (9000-x)=324$

$\frac{18x}{100}=1620-324=1296$

$x=7200$

So for the shopkeeper, cost price of the article is ₹7200