Question

A washing machine is marked at 40000. A dealer sells it to Jahid at 10% profit. If the rate of GST is 12%, find:

1. the selling price excluding tax of the washing machine.
2. the amount of tax (under GST) paid by Jahid.
3. the total amount paid by Jahid.

Answer 1

(i) Selling price excluding tax = 40000 + 10% of 40000

= 40000 × 1.10

= ₹ 44,000

(ii) GST (12%) = 12% of 44,000 

= 0.12 × 44,000

= ₹ 5,280

(iii) Total amount paid by Jahid = 44,000 + 5,280

= ₹ 49,280