Question

A shopkeeper buys an article whose marked price is ₹ 9,000 at some rate of discount from a wholesaler. He sells the article to a consumer at the list price and charge GST at the rate of 12%. If the sales are intra-state and the shopkeeper has to pay tax (under GST) of ₹ 54, to the state government, find the rate of discount at which he bought the article from the wholesaler.

Answer 1

SGST rate = `(12%)/2`

= 6%

SGST paid = 6% × (SP – CP)

SGST paid = 6% × Discount Amount

54 = `6/100xx"D"`

= `(54xx100)/6`

= 900

Rate of Discount = `"Discount Amount"/"Marked Price"xx100`

= `900/9000xx100`

= 10%