Multiple choice

A shopkeeper buys an iphone at a discount of 15% from an apple store. Marked price of iphone is Rs. 82,000 and then shopkeeper sells it to a customer on the marked price. The sale is intra-state and rate of GST is 18%. What is GST (in Rs.) paid by the shopkeeper to central government?

  1. 1107

  2. 1000

  3. 6273

  4. 8400

  5. 8000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The shopkeeper buys at 15% discount on 82000, which is 69700. He sells at 82000. The GST is paid on the value added (profit). Profit = 82000 - 69700 = 12300. GST = 18% of 12300 = 2214. Since it is intra-state, the Central GST (CGST) is half of the total GST, which is 2214 / 2 = 1107.

AI explanation

The shopkeeper buys the iphone at a 15% discount on the marked price of Rs. 82,000, making the purchase price 69,700. The shopkeeper sells it at the marked price of 82,000, so the output tax is 18% of 82,000, which is 14,760. The input tax is 18% of 69,700, calculated as 0.18 times 69,700, resulting in 12,546. The GST paid by the shopkeeper to the central government for an intra-state sale is half of the net tax liability, which is half of (14,760 minus 12,546), giving a result of Rs. 1,107.

Keep practicing — related questions