Question

A shopkeeper sells an article at the listed price of Rs.1500. The rate of
GST on the article is 18%. If the sales are intra state and the shopkeeper
paid Rs.36 as tax to central government, find the price he paid for the
article.​

Answer 1

Answer:

Let the profit of the shopkeeper is Rs.x.

The value of the article increased by the shopkeeper is Rs.x

VAT paid by the shopkeeper is Rs.36 at rate of sales tax 18%

∴ 18% of x=36

⇒ 18÷100x = 36

x= 100×36/18 = Rs. 200

∴ Profit of the shopkeeper = Rs.200

Price of the article at which shopkeeper bought the article fron the wholesaler =1500−200= Rs.1300

Sales tax paid by the shopkepper =18% of 1300

⇒ 18/100×1300= Rs. 234

∴ The price at which the shopkeeper purchased the article from the wholesaler=1300+234= Rs.1534