ICSE Class 10 Answered

Question 13:
A retailer buys a TV from a manufacturer for rs 25000. he marks the price of the tv 20% above his cost price and sells it to a customer at 10% discount on the marked price. If the sales are inter-state and rate of GST is 12%, find:
(i) the marked price of the TV
(ii) consumer's cost price of TV inclusive of tax under GST
(iii) GST paid by the retailer to the Central and State Governments.
Solution:
(i)
Marked price of T.V. = 25000 + 20% of 25000 = Rs. 30000
(ii)
Marked price = Rs. 30000
Discount = 10% = Rs. 3000
∴ Cost price for consumer without tax = 30000 – 3000 = Rs. 27000
GST paid by the consumer = 12% of 27000 = Rs. 3240
∴ Consumer’s cost price of TV inclusive of tax under GST = Rs. (27000 + 3240) = Rs. 30240
(iii)
For the retailer:
Input tax = 12% of 25000 = Rs. 3000
Output tax = 12% of 27000 = Rs. 3240
GST paid by the retailer to the Central and State Governments = Output tax – Input tax
= Rs. (3240 – 3000)
= Rs. 240