Question

8. For a dealer A, the list price of an article is 27,000, which he sells to dealer B at some lower price. Further, dealer B sells the same article to a customer at its list price. If the rate of GST is 8% and dealer B paid a tax, under GST, equal to 1,944 to the government, find the amount (inclusive of GST) paid by dealer B.

Please provide the explanation along with the answer ​

Answer 1

Answer:

The amount paid by dealer B with GST is 26,244

Step-by-step explanation:

MRP=27000

GST % = 8%

GST paid = 1,944

Let dealer A sell to dealer B at rs. x low price.

then from the question

Net tax paid by dealer B

outpost tax-input tax=Rs.1944

8% of 27000-8% of (27000-x)=1944

2160 - 2160+8% of x=1944

x=24,300

therefore,the amount paid by the dealer B=24,300+1,944= Rs.26,244