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Mathematics

A retailer buys a T.V. from a manufacturer for ₹ 25000. He marks the price of the T.V. 20% above his cost price and sells it to a consumer at 10% discount on the, marked price. If the sales are inter-state and rate of GST is 12%, find :

(i) the marked price of the TV.

(ii) consumer's cost price of TV inclusive of tax under GST.

(iii) GST paid by the retailer to the Central and State Governments.

GST

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Answer

(i) Given,

Retailer marks the price of the T.V. 20% above his cost price

∴ M.P. = ₹ 25000 + 20% of ₹ 25000

= ₹ 25000 + 20100×25000\dfrac{20}{100} \times 25000

= ₹ 25000 + ₹ 5000 = ₹ 30000.

Hence, the marked price of the TV = ₹ 30000.

(ii) M.P. = ₹ 30000

Discount = 10%

C.P. (without tax) = ₹ 30000 - 10% of ₹ 30000

= ₹ 30000 - ₹ 3000 = ₹ 27000.

GST paid by consumer = 12% of ₹ 27000 = 12100×27000\dfrac{12}{100} \times 27000 = ₹ 3240

∴ Consumer's cost price of TV inclusive of tax = ₹ 27000 + ₹ 3240 = ₹ 30240.

Hence, consumer's cost price of TV inclusive of tax under GST = ₹ 30240.

(iii) For retailer :

Input tax = 12% of ₹ 25000 = 12100×25000\dfrac{12}{100} \times 25000 = ₹ 3000

Output tax = 12% of ₹ 27000 = 12100×27000\dfrac{12}{100} \times 27000 = ₹ 3240

GST paid by retailer = Output tax - Input tax = ₹ 3240 - ₹ 3000 = ₹ 240.

Hence, GST paid by the retailer to the Central Government = ₹ 240 and state government = ₹ 0.

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