The marked price of an article is ₹12500. A dealer in Kolkata sells the article to a consumer in the same city at a profit of 8%. If the rate of GST is 18%, find

(i) the selling price (excluding tax) of the article.

(ii) IGST, CGST and SGST paid by the dealer to the Central and State Governments.

(iii) the amount which the consumer pays for the article.

Marked price of the article = ₹12500
Profit = 8%
Rate of GST = 18%

(i) Selling price of the article (excluding tax) = Marked Price + Profit

$= 12500 + \Big(\dfrac{8}{100} \times 12500\Big) \\[0.5em] = 12500 + 1000 \\[0.5em] = \bold{₹13500}$

(ii) As the sales are intra-state and the rate of GST is 18%, so GST comprises of CGST at 9% and SGST at 9%

IGST = Nil (∵ sale is intra-state)

CGST = 9% of 13500 = $\dfrac{9}{100}$ x 13500 = ₹1215

SGST = 9% of 13500 = $\dfrac{9}{100}$ x 13500 = ₹1215

∴ Amount of tax paid by the dealer to the Central and State Governments:

CGST = ₹1215 to the Central government and

SGST = ₹1215 to the State government

(iii) The total amount paid by the consumer = Selling price of the article + GST paid by the consumer
= ₹13500 + CGST paid by the consumer + SGST paid by the consumer
= ₹13500 + ₹1215 + ₹1215
= ₹15930