Question

A retailer buys a moving camera from a wholesaler for ₹ 50000. He marks the price 20% above the cost price and sells it to a consumer at 10% discount on the marked price. If the sales are intra-state and the rate of GST is 12%, find:

1. the marked price of the camera.
2. Consumer’s cost price of camera inclusive of tax (under GST).
3. GST paid by the retailer to the Central and State governments.

Answer 1

(i) Marked price = 50,000 + (20% of 50,000)

= 50,000 + 10,000

= 60,000

(ii) Selling Price = 60,000 – (10% of 60,000)

= 60,000 – 6,000

= 54,000

GST = 12% of 54,000 = 6,480

Consumer’s cost price = 54,000 + 6480

= 60,480

(iii) Input tax = 12% of 50,000 = 6,000

Output tax = 12% of 54,000 = 6,480

Net GST Payable = 6,480 – 6,000

= 480

CGST Paid = `480/2` = 240

SGST Paid = `480/2` = 240