Problem Statement
A dealer in Mumbai buys an article from a manufacturer in Pune for ₹12,000. He marks up the price by 25% and sells it to a consumer in Mumbai at a discount of 10%. If the GST rate is 18%, calculate:
(i) The marked price of the article.
(ii) The amount of CGST and SGST paid by the consumer.
(iii) The total amount paid by the consumer.
Verified Solution & Marking Scheme
(i) Calculate Marked Price (MP)
Cost Price to dealer $= ₹12,000$.
$\text{Mark-up} = 25\% \text{ of } 12000 = \frac{25}{100} \times 12000 = ₹3,000$
$\text{Marked Price (MP)} = 12000 + 3000 = ₹15,000$
Calculate Selling Price to consumer
$\text{Discount} = 10\% \text{ of } 15000 = ₹1,500$
$\text{Selling Price (SP)} = 15000 - 1500 = ₹13,500$
(ii) Compute CGST and SGST (Intra-state Maharashtra)
Since dealer (Mumbai) and consumer (Mumbai) are in Maharashtra, it is an intra-state transaction.
$\text{CGST rate} = 9\%, \quad \text{SGST rate} = 9\%$
$\text{CGST} = 9\% \text{ of } 13500 = \frac{9}{100} \times 13500 = ₹1,215$
$\text{SGST} = 9\% \text{ of } 13500 = ₹1,215$
(iii) Total amount paid by consumer
$\text{Total Amount} = \text{SP} + \text{CGST} + \text{SGST} = 13500 + 1215 + 1215 = ₹15,930$