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The marked price of an article is 12500. A dealer in Kolkata sells the article to a consumer in the same city at a profit of 8%. If the rate of GST is 18%, find (i) the selling price (excluding tax) of the goods. (ii) IGST, CGST and SGST paid by the dealer to the Central and State Governments. (iii) the amount which the consumer pays for the article

(i)The marked price of the article

\[=\text{ }Rs.\text{ }12500\]

When sold at a profit of 8%

Profit

\[=\text{ }\left( 8/100 \right)\text{ }x\text{ }Rs.\text{ }12500\]

\[=\text{ }Rs.\text{ }1000\]

Thus,

the selling price (excluding tax) of the article

\[=\text{ }Marked\text{ }price\text{ }+\text{ }profit\]

\[=\text{ }Rs.\text{ }12500\text{ }+\text{ }Rs.\text{ }1000\]

\[=\text{ }Rs.\text{ }13500\]

(ii) The rate of GST

\[=\text{ }18%\]

IGST is not applicable in this case since the dealing is intra state

CGST paid by the dealer to the Central Government

\[=\text{ }9%\text{ }of\text{ }the\text{ }selling\text{ }price\]

\[=\text{ }\left( 9/100 \right)\text{ }x\text{ }Rs.\text{ }13500\]

\[=\text{ }Rs.\text{ }1215\]

And,

SGST paid by the dealer to the State Government

\[=\text{ }9%\text{ }of\text{ }the\text{ }selling\text{ }price\]

\[=\text{ }\left( 9/100 \right)\text{ }x\text{ }Rs.\text{ }13500\]

\[=\text{ }Rs.\text{ }1215\]

(iii) Hence,

the total amount which the consumer pays for the article will be

= Selling price + CGST + SGST

\[=\text{ }Rs.\text{ }13500\text{ }+\text{ }Rs.\text{ }1215\text{ }+\text{ }Rs.\text{ }1215\]

\[=\text{ }Rs.\text{ }15930\]