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Mathematics

A retailer buys an article at its listed price from a wholesaler and sells it to a consumer in the same state after marking up the price by 20%. The list price of the article is ₹ 2500, and the rate of GST is 12%. What is the tax liability of the retailer to the central government?

  1. ₹ 0

  2. ₹ 15

  3. ₹ 30

  4. ₹ 60

GST

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Answer

For retailer,

C.P. = ₹ 2500

G.S.T. = 12%

C.G.S.T. = 122\dfrac{12}{2} % = 6%.

C.G.S.T. paid = 6100×2500\dfrac{6}{100} \times 2500 = ₹ 150.

Given,

Retailer sells the article to the consumer in the same state after marking up the price by 20%.

S.P. = ₹ 2500 + 20%

= ₹ 2500 + 20100×2500\dfrac{20}{100} \times 2500

= ₹ 2500 + ₹ 500

= ₹ 3000.

C.G.S.T. = 6%

C.G.S.T. charged = 6100×3000\dfrac{6}{100} \times 3000 = ₹ 180.

Tax liability = C.G.S.T. charged - C.G.S.T. given

= ₹ 180 - ₹ 150

= ₹ 30.

Hence, Option 3 is the correct option.

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