Problem Statement
A retailer buys a washing machine from a wholesaler for ₹24,000. The retailer marks up the price by 25% and sells it to a consumer at a discount of 10% on the marked price. If the rate of GST is 18%, calculate:
(a) The marked price of the washing machine.
(b) The price paid by the consumer including GST.
(c) The CGST and SGST paid by the retailer to the government.
Verified Solution & Marking Scheme
Part (a): Find Marked Price
Cost Price to retailer $= ext{Rs } 24,000$.
Markup $= 25\% \text{ of } 24000 = \frac{25}{100} \times 24000 = ext{Rs } 6,000$.
$$\text{Marked Price (MP)} = 24000 + 6000 = ext{Rs } 30,000$$
Part (b): Find Consumer Selling Price and total price with GST
Discount $= 10\% \text{ of } 30000 = ext{Rs } 3,000$.
Selling Price to consumer $(\text{SP}) = 30000 - 3000 = ext{Rs } 27,000$.
$$\text{GST on consumer SP} = 18\% \text{ of } 27000 = \frac{18}{100} \times 27000 = ext{Rs } 4,860$$
$$\text{Total price paid by consumer} = 27000 + 4860 = ext{Rs } 31,860$$
Part (c): Calculate Net GST paid by retailer
Input Tax Credit (ITC) paid by retailer $= 18\% \text{ of } 24000 = ext{Rs } 4,320$.
Output GST collected by retailer $= ext{Rs } 4,860$.
$$\text{Net GST paid to government} = \text{Output GST} - \text{ITC} = 4860 - 4320 = ext{Rs } 540$$
Since GST is split equally between Central and State:
$$\text{CGST} = \frac{540}{2} = ext{Rs } 270, \quad \text{SGST} = \frac{540}{2} = ext{Rs } 270$$