1

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.

Open in App

Solution

The correct option is **A** 7200

**L**et the shopkeeper buys the article at ₹x

**F**or the shopkeeper CP = ₹x and SP = ₹9000

**C**GST paid by him to the government = ₹162

**S**GST paid by him to the government = ₹162

**T**otal GST paid by him to the government = SGST + CGST = ₹162 + ₹162 = ₹324

Output GST - Input GST = ₹324

18% of ₹9000 - 18% of ₹x = 324

18100×(9000−x)=324

18x100=1620−324=1296

x=7200

So for the shopkeeper, cost price of the article is ₹72000

View More

Join BYJU'S Learning Program

Join BYJU'S Learning Program