A manufacturer sells a product to its wholesaler for ₹ 25000. He marks the
price 20% above his cost price and sells it to a retailer at 10% discount on
the marked price. If the sale is intra state and rate of GST is 9%, find
(i) The marked price
(ii) Retailer’s cost price inclusive of tax.
(iii) GST paid by the wholesaler
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Step-by-step explanation:
(i) Cost price for wholesaler =Rs.25,000
Marked price =Rs.25,000+ 20/100×Rs.25,000
=Rs.30,000
(ii) Discount =10% of 30,000=Rs.3,000
Cost price for retailer = Marked price − Discount
=Rs.30,000−Rs.3,000
=Rs.27,000
Cost price inclusive tax =Rs.27,000+ 9/100×Rs.27,000
=Rs.29,430
(iii) Cost price for wholesaler =Rs.25,000
Sale price for wholesaler =Rs.27,000
Profit for wholesaler =Rs27,000−Rs25,000
=Rs.2,000
GST = 9/100×Rs.2,000 =Rs.180
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