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

Output SGST = 9% of 16,000

= `9/100 xx 16,000`

= ₹ 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 = 9/100 xx CP`

`CP = (1,296 xx 100)/9`

= 14,400

Discount Amount = MP − CP

= ₹ 16,000 − ₹ 14,400

= ₹ 1,600

Rate of Discount = `"Discount Amount"/"MP" xx 100%`

= `(1,600)/(16,000) xx 100%`

= 10%

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