Question

b) The printed price of an article is 5,000. A shopkeeper sells the article to a consumer at the printed
price and charges GST at the rate 12%. If the shopkeeper pays GST of 84 to the Government, at
what price inclusive of GST did the shopkeeper buy the article from the wholesaler?
[3 M]​

Answer 1

Answer:

4,816 ( including GST )

Step-by-step explanation:

Retailer will pay GST to the govt for the amout added by the retailer ( profit )

As he paid Rs. 84 at 12% the profit will be

= 84*100/12

= 700

Hence out of listed price of Rs. 5000, Rs. 700 is the profit added by the retailer.

.°. retailer has bought the article for

5000 - 700 = 4300 ( excliding GST )

Price of article including GST for the shopkeeper

=> 4300 + 12%

=> 4300 + 12% ( 4300 )

=> 4300 + 516

=> 4,816 ( including GST )