KnowledgeBoat Logo

Mathematics

Some goods/services are supplied for ₹ 20,000 from Mathura (U.P.) to Ratlam (M.P.) and then from Ratlam to Indore (M.P.). If at each stage, the rate of tax under G.S.T. system is 12% and the profit made by the dealer in Ratlam is ₹ 3,750; find the cost of the article (in Indore) under GST.

GST

19 Likes

Answer

S.P. in Mathura = ₹ 20,000

GST = IGST = 12% of ₹ 20,000 = 12100×20000\dfrac{12}{100} \times 20000 = ₹ 2400 (Inter state transaction)

GST charged by the dealer in Mathura = Input GST for the dealer in Ratlam = ₹ 2400.

S.P. in Ratlam = ₹ 20000 + ₹ 3750 = ₹ 23750.

GST charged by the dealer in Ratlam = CGST + SGST (Intra-state transaction)

CGST = 6% of ₹ 23750 = 6100×23750\dfrac{6}{100} \times 23750 = ₹ 1425

SGST = CGST = ₹ 1425

GST = CGST + SGST = ₹ 1425 + ₹ 1425 = ₹ 2850

Cost of the article in Indore = S.P. for dealer in Ratlam + GST

= ₹ 23750 + ₹ 2850

= ₹ 26600.

Hence, cost of article in Indore = ₹ 26600.

Answered By

5 Likes


Related Questions