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Mathematics

A shopkeeper bought a machine from a distributor at a discount of 25% of the listed price of ₹32000. The shopkeeper sells the machine to a consumer at listed price. If the sales are intra-state and the rate of GST is 18%, then choose the correct answer from the given four options for questions 7 to 11:

The selling price of the machine including tax(under GST) by the distributor is

  1. ₹32000
  2. ₹24000
  3. ₹28320
  4. ₹26160

GST

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Answer

Given:
Listed price of machine = ₹32000
Discount given by distributor to shopkeeper = 25% of Listed price =(25100)×32000=0.25×32000=₹8000= \Big(\dfrac{25}{100}\Big) \times 32000 \\[0.5em] = 0.25 \times 32000 \\[0.5em] = ₹8000

Selling price for distributer excluding tax (or cost price for shopkeeper) = Listed Price - Discount
= 32000 - 8000
= ₹24000

As the sales are intra-state and the rate of GST is 18%, so GST comprises of 9% as CGST and 9% as SGST. Distributor sells the machine to shopkeeper for ₹24000, amount of GST collected by distributor from shopkeeper(or paid by shopkeeper):

CGST = 9% of 24000 = 9100\dfrac{9}{100} x 24000 =₹2160

SGST = 9% of 24000 = 9100\dfrac{9}{100} x 24000 =₹2160

∴ The Input Tax(under GST) for shopkeeper:
Input CGST = 2160
Input SGST = 2160

∴ The selling price of machine including tax (under GST) by the distributor = Selling Price + CGST + SGST
= 24000 + 2160+2160
= ₹28320

∴ Option 3 is the correct option.

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