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Home » A dealer in Maharashtra buys an article from a wholesaler in Maharashtra at a discount of 25%, the printed price of the article being Rs. 20000. He sells the article to a consumer in Telangana at a discount of 10% on the printed price. If the rate of GST is 12%, find (i) the tax (under GST) paid by the wholesaler to Governments. (ii) the tax (under GST) paid by the dealer to the Governments. (iii) the amount which the consumer pays for the article.
A dealer in Maharashtra buys an article from a wholesaler in Maharashtra at a discount of 25%, the printed price of the article being Rs. 20000. He sells the article to a consumer in Telangana at a discount of 10% on the printed price. If the rate of GST is 12%, find (i) the tax (under GST) paid by the wholesaler to Governments. (ii) the tax (under GST) paid by the dealer to the Governments. (iii) the amount which the consumer pays for the article.
Class 10 | Exercise 1 | Goods and Service Tax | ICSE | Maths | ML Aggarwal
A dealer in Maharashtra buys an article from a wholesaler in Maharashtra at a discount of 25%, the printed price of the article being Rs. 20000. He sells the article to a consumer in Telangana at a discount of 10% on the printed price. If the rate of GST is 12%, find (i) the tax (under GST) paid by the wholesaler to Governments. (ii) the tax (under GST) paid by the dealer to the Governments. (iii) the amount which the consumer pays for the article.

The printed price of the article

    \[=\text{ }Rs.\text{ }2000\]

Discount rate

    \[=\text{ }25%\]

Discount

    \[=\text{ }\left( 25/100 \right)\text{ }x\text{ }Rs.\text{ }20000\]

    \[=\text{ }Rs.\text{ }5000\]

So, the selling price of the article by the wholesaler = Printed price – discount

    \[=\text{ }Rs.\text{ }20000\text{ }\text{ }Rs.\text{ }5000\]

    \[=\text{ }Rs.\text{ }15000\]

(i) The tax (under GST) paid by the wholesaler to the Governments

= 12% of the selling price

    \[=\text{ }\left( 12/100 \right)\text{ }x\text{ }Rs.\text{ }1500\]

    \[=\text{ }Rs.\text{ }1800\]

So, the CGST

= Rs. 900

and

    \[SGST\text{ }=\text{ }Rs.\text{ }900\]

And, the total amount paid by the dealer

 

= selling price + GST

 

    \[=\text{ }Rs.\text{ }15000\text{ }+\text{ }Rs.\text{ }1800\]

    \[=\text{ }Rs.\text{ }16800\]

(ii) The dealer resells the article at a discount of 10% from the marked price

So, the discount

    \[=\text{ }\left( 10/100 \right)\text{ }x\text{ }Rs.\text{ }20000\]

    \[=\text{ }Rs.\text{ }2000\]

Hence, the selling of the article from the dealer

= marked price – discount

 

    \[=\text{ }Rs.\text{ }20000\text{ }\text{ }Rs.\text{ }2000\]

    \[=\text{ }Rs.\text{ }18000\]

Now, the tax (under GST) paid by the dealer to the Governments

= 12% of the selling price

 

    \[IGST\text{ }=\text{ }\left( 12/100 \right)\text{ }x\text{ }Rs.\text{ }18000\]

    \[=\text{ }Rs.\text{ }2160\]

Thus, the net tax (under GST) paid by the dealer to the governments

    \[=\text{ }Rs.\text{ }2160\text{ }\text{ }Rs.\text{ }1800\]

    \[=\text{ }Rs.\text{ }360\]

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

= Selling price of the dealer + IGST

    \[=\text{ }Rs.\text{ }18000\text{ }+\text{ }12%\text{ }of\text{ }Rs.\text{ }18000\]

    \[=\text{ }Rs.\text{ }18000\text{ }+\text{ }Rs.\text{ }2160\]

or,

    \[=\text{ }Rs.\text{ }20160\]

i

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