Question

For an Intra-state sale, the CGST paid by a dealer to the Central government is ₹ 120. If the marked price of the article is ₹ 2000, the rate of GST is ______.

Options

• 6%

• 10%

• 12%

• 16.67%

Answer 1

For an Intra-state sale, the CGST paid by a dealer to the Central government is ₹ 120. If the marked price of the article is ₹ 2000, the rate of GST is 12%.

Explanation:

CGST paid = ₹ 120

M.P. of article ₹ 2,000

In case of intra-state sales,

CGST = SGST

And GST amount = CGST + SGST

= 120 + 120

= 240

Then, GST Rate = `"GST Amount"/"Marked Price" xx 100`

= `240/2000 xx 100` 

= 12%