Question

A retailer purchased an item for ₹2500 from a wholesaler and sells it to a customer at 12% profit. The sales are intrastate and the rate of GST is 18%. The amount of tax paid by the customer to the central government is​

Answer 1

The amount of tax paid by the customer to the central government is ₹504.

Step-by-step explanation:

The amount of tax paid by the customer to the central government can be calculated using the following steps:

1. Calculate the selling price to the customer by adding the 12% profit to the purchasing price. 12% of ₹2500 is ₹300, so the selling price is ₹2500 + ₹300 = ₹2800.
2. Calculate the amount of tax paid by the customer by multiplying the selling price by the rate of GST. 18% of ₹2800 is ₹504.

Therefore, the amount of tax paid by the customer to the central government is ₹504.