A retailer purchased an air conditioner (A.C.) for ₹30,000. He marked up its price by 20% and then allows a discount of 10% on the marked price to a customer. If the sale is intra-state and the rate of GST is 28%, find the:
(a) marked price of A.C.
(b) total amount paid by the customer including GST.
(c) tax collected by the central and the state governments respectively.
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Given,
(a) Given,
Cost price = ₹30,000
Markup = 20%
Markup amount = 20% of cost price
= $\frac{20}{100} \times 30000$
= ₹ 6,000
Marked price = Cost price + Markup amount
= 30,000 + 6,000
= ₹ 36,000
Hence, marked price = ₹ 36,000.
(b) Given,
Discount = 10%
Discount amount = 10% of marked price
= $\frac{10}{100} \times 36000$
= ₹ 3,600
Selling price = Marked price - Discount
= 36000 - 3600
= ₹ 32,400
GST = 28%
GST amount = 28% of selling price
= $\frac{28}{100} \times 32400$
= ₹ 9,072.
Total amount paid by customer = Selling price + GST
= ₹ 32,400 + ₹ 9,072
= ₹ 41,472.
Hence, total amount paid by the customer = ₹ 41,472.
(c) From part (b),
Total GST = ₹ 9,072
GST = 28%
CGST= SGST = $\frac{GST}{2} = \frac{9072}{2}$
= ₹ 4,536.
Hence, tax collected by central government = ₹ 4,536 and tax collected by state government = ₹ 4,536.