A wholesaler buys a TV from a manufacturer for ₹ $25,000$. The wholesaler marks the price of the TV $20 \%$ above the cost price and sells it to a retailer at a discount of $10 \%$ on the marked price. If the rate of GST is $28 \%$, find
- the marked price;
- retailer's cost price inclusive of tax;
- GST paid by the wholesaler.
- Cost Price of TV for wholesaler $= $ ₹ $25,000$
Marked price of TV $= $ ₹ $\left(25,000 + 20 \% \text{ of } 25,000\right)$
i.e $\;$ Marked price $= $ ₹ $\left(25,000 + \dfrac{20}{100} \times 25,000\right) = $ ₹ $\left(25,000 + 5,000\right) = $ ₹ $30,000$ - Discount given by wholesaler $= 10 \% \text{ of }$ ₹ $30,000$
i.e. $\;$ Discount $= $ ₹ $\dfrac{10}{100} \times 30,000 = $ ₹ $3,000$
$\therefore \;$ Amount paid by retailer without GST $= $ ₹ $\left(30,000 - 3,000\right) = $ ₹ $27,000$
Rate of GST $= 28\%$
$\therefore \;$ Amount of GST paid by retailer $= 28 \% \text{ of }$ ₹ $27,000$
i.e. $\;$ Amount of GST paid by retailer $= $ ₹ $\left(\dfrac{28}{100} \times 27,000\right) =$ ₹ $7,560$
$\therefore \;$ Retailer's cost price (inclusive of tax) $= $ ₹ $\left(27,000 + 7,560\right) = $ ₹ $34,560$ - Cost price for wholesaler $= $ ₹ $25,000$
$\therefore \;$ GST paid by wholesaler for purchase $= $ ₹ $28 \% \text{ of } 25,000$
i.e. $\;$ GST paid by wholesaler $= $ ₹ $\left(\dfrac{28}{100} \times 25,000\right) = $ ₹ $7,000$
Sale price for wholesaler $= $ ₹ $27,000$
GST charged by wholesaler on selling of TV $= $ ₹ $28 \% \text{ of } 27,000 = $ ₹ $7,560$
$\therefore \;$ GST paid by wholesaler $= $ GST charged on selling price $- $ GST paid against purchase price
i.e. $\;$ GST paid by wholesaler $= $ ₹ $\left(7,560 - 7,000\right) = $ ₹ $560$