Question

A shopkeeper buys an article whose marked price is ₹ 16000 at some rate of discount from a wholesaler. He sells the article to a consumer at the marked price. The sales are intra-state and the rate of GST is 18%. If the shopkeeper pays a tax (under GST) of ₹ 144 to the State government, find the rate of discount at which he bought the article from the wholesaler.

Answer 1

Ouput SGST = 9% of 16,000

= `9/100xx16,000`

= ₹ 1,440

Net SGST = Output SGST − Input SGST

144 = 1,440 − Input SGST

Input SGST = 1,440 − 144

Input SGST = 1,296

Input SGST = 9% of CP

1296 = `9/100xx"CP"`

CP = `(1,296xx100)/9`

= 14,400

Discount Amount = MP − CP

= ₹ 16,000 − ₹ 14,400

= ₹ 1,600

Rate of Discount = `"Discount Amount"/"MP"xx100%`

= `"1,600"/"16,000"xx100%`

= 10%

∴ The rate of discount at which the shopkeeper bought the article from the wholesaler is 10%.