Question

The printed price of a machine is ₹ 90,000. The whole-saler allows a discount of 10% (on the printed price) to a shopkeeper. The shopkeeper sells this machine to a customer at a discount of 5% on the printed price. The GST is charged at the rate of 12% at every stage. Find: 

1. GST paid by the shopkeeper.
2. The total amount paid by the customer.

Answer 1

Given:

• Printed Price = ₹90,000
• Discount given by wholesaler = 10%
• Discount given by shopkeeper = 5%
• GST = 12%

Purchase price of the shopkeeper = 10% of ₹ 90,000

= ₹ 9000

Price paid by shopkeeper = ₹ 90,000 − ₹ 9000

= ₹ 81,000

GST paid by the shopkeeper to the wholesaler = 12% of ₹ 81,000

Input GST = ₹ 9,720

Selling price charged by the shopkeeper = 5% of ₹ 90,000

= ₹ 4,500

∴ Selling price = ₹ 90,000 − ₹ 4,500

= ₹ 85,500

GST collected by the shopkeeper = 12% of ₹ 85,500

Output GST = ₹ 10,260

i. GST paid by the shopkeeper = Output GST − Input GST

= ₹ 10,260 − ₹ 9,720

= ₹ 540

ii. Total amount paid by the customer = ₹ 85,500 − ₹ 10,260

= ₹ 95,760