Question

A shopkeeper sells an article at the marked price of Rs 6000. The rate of GST on the article is 18%.

If the sales are intra state and the shopkeeper pays CGST of Rs 108 to the central government, find

the amount inclusive of tax at wh!ch the shopkeeper purchased the article from the wholesaler.​

Answer 1

Answer:

Given: Listed price of an article=Rs.1,500, Rate of VAT=12%

VAT on the article=

100

12

×1500,=Rs.180

Let C.P. of this article be x, then

VAT=

100

12

×x,=Rs.

100

12x

If the shopkeeper pays a VAT =Rs. 36

Then 180−

100

12x

=36

100

18000−12x

=36

18000−12x=3600

∴12x=18000−3600=14,400

x=Rs.1,200

∴ The price at which the shopkeeper purchased the article inclusive of sales tax

= Rs. 1,200+

100

12

×1,200

=1,200+144

= Rs. 1,344.