Question

A shopkeeper bought an article from a dealer at ₹ 1000. He sold it to the customer at ₹ 1200. If the rate of GST is 12%, then:

1. GST paid by dealer is:
   1. ₹ 120
   2. ₹ 240
   3. ₹ 144
   4. ₹ 288
2. The amount paid by the customer to buy the item is:
   1. ₹ 1200
   2. ₹ 1300
   3. ₹ 1344
   4. ₹ 1350

Answer 1

i. Given,

A shopkeeper bought an article from a dealer at ₹ 1,000.

Rate of GST = 12%

GST charged by dealer = `12/100 xx 1000` = ₹ 120

This will be the GST paid by dealer to government.

Hence, option a is the correct option.

ii. Given,

Shopkeeper sells the article to the customer for ₹ 1,200.

GST = `12/100 xx 1200`

GST = ₹ 144

Amount paid by customer = ₹ 1,200 + ₹ 144

= ₹ 1,344

Hence, option c is the correct option.