The price of an article is Rs. 5120 inclusive of GST, at the rate of 28% on its listed price. A customer asks the dealer for a discount on the listed price so that after charging the GST, the selling price will be same as the listed price. What is the amount of discount that the dealer must allow for the deal?
Answers
Let dealer A sell to dealer B at Rs. x lower price.Then from the question,
Net Tax paid by dealer B is
⇒ Output tax – Input Tax = Rs. 324
⇒ 18% of 9000 – 18% of (9000 – x) = 324
⇒ 1620 – 1620 + 18% of x = 324
⇒ x = 1800
Therefore, the selling price of B = 9000 – 1800 = Rs. 7200
And,
The amount (inclusive of GST) paid by dealer B
= 7200 + 18% of 7200
= 7200 + 1296
= Rs. 8496
It is a example hope next u can do urself !!
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Let dealer A sell to dealer B at Rs. x lower price.Then from the question,
Net Tax paid by dealer B is
⇒ Output tax – Input Tax = Rs. 324
⇒ 18% of 9000 – 18% of (9000 – x) = 324
⇒ 1620 – 1620 + 18% of x = 324
⇒ x = 1800
Therefore, the selling price of B = 9000 – 1800 = Rs. 7200
And,
The amount (inclusive of GST) paid by dealer B
= 7200 + 18% of 7200
= 7200 + 1296
= Rs. 8496