ICSE Class 10 Answered
Marked price of an article = Rs. 20,000
For the dealer:
Cost price = Rs. 20,000
GST = 18% of Rs. 20,000 = Rs. 3600
So, the price of the article (inclusive of GST) for the shopkeeper is Rs. 23600.
GST paid by the shopkeeper = Rs. 3600
Cost price = 20000 + 25% of 20000 = Rs. 25000
GST paid by the consumer = 18% of 25000 = Rs. 4500
∴ Input tax for the shopkeeper = Rs. 3600
Output tax for the shopkeeper = Rs. 4500
Tax paid by the shopkeeper to the government = Output tax – Input tax = Rs. 900.Thus, the amount of tax, under GST, paid by the shopkeeper to the Government is Rs. 900.