Class 10 – Goods and Services Tax

$\displaystyle \textbf{Question 1: }\ \text{For an Intra-state sale, the CGST paid by a dealer to the Central} \\ \text{Government is Rs }120. \text{If the marked price of the article is Rs }2000,\ \text{then the rate of} \\ \text{GST is} \hspace{11.0cm} \text{[ICSE 2024]}$
$\displaystyle (a)\ 6\%\qquad (b)\ 10\%\qquad (c)\ 12\%\qquad (d)\ 16.67\%$
$\displaystyle \text{Answer:}$
$\displaystyle (a)\ \text{Given, marked price of article}=\text{Rs }2000$
$\displaystyle \text{CGST paid by dealer to government}=\text{Rs }120$
$\displaystyle \therefore\ \text{Rate of GST}=\frac{120}{2000}\times 100=6\%$

$\displaystyle \textbf{Question 2: }\ \text{The printed price of an article is Rs }3080.\ \text{If the rate of GST is 10\%,} \\ \text{then the GST charged is} \hspace{7.0cm} \text{ICSE 2023}$
$\displaystyle (a)\ \text{Rs }154\qquad (b)\ \text{Rs }308\qquad (c)\ \text{Rs }30.80\qquad (d)\ \text{Rs }15.40$
$\displaystyle \text{Answer:}$
$\displaystyle (b)\ \text{Given, printed price}=\text{Rs }3080\ \text{and GST}=10\%$
$\displaystyle \therefore\ \text{GST charged}=\frac{\text{Printed Price}\times \%\ \text{of GST}}{100}$
$\displaystyle =\text{Rs }\left(\frac{3080\times 10}{100}\right)=\text{Rs }308$

$\displaystyle \textbf{Question 3: }\ \text{The selling price of a shirt excluding GST is Rs }800.\ \text{If} \\ \text{the rate of GST is 12\%,} \text{then the total price of the shirt is}\qquad \text{ICSE Semester I 2022}$
$\displaystyle (a)\ \text{Rs }704\qquad (b)\ \text{Rs }96\qquad (c)\ \text{Rs }896\qquad (d)\ \text{Rs }848$
$\displaystyle \text{Answer:}$
$\displaystyle (c)\ \text{Given, SP without GST}=\text{Rs }800$
$\displaystyle \text{and rate of GST}=12\%$
$\displaystyle \text{So, }12\%\ \text{of Rs }800\ \text{is}=\frac{800\times 12}{100}=\text{Rs }96$
$\displaystyle \text{Thus, SP of shirt with GST i.e. total price}$
$\displaystyle =\text{Rs }800+\text{Rs }96$
$\displaystyle =\text{Rs }896$

$\displaystyle \textbf{Question 4: }\ \text{The marked price of an article is Rs }5000.\ \text{The shopkeeper gives a} \\ \text{discount of 10\%.} \text{If the rate of GST is 12\%, then the amount paid by the customer} \\ \text{including GST is} \hspace{7.0cm} \text{ICSE Semester I 2022}$
$\displaystyle (a)\ \text{Rs }5040\qquad (b)\ \text{Rs }6100\qquad (c)\ \text{Rs }6272\qquad (d)\ \text{Rs }6160$
$\displaystyle \text{Answer:}$
$\displaystyle (a)\ \text{Given, MP}=\text{Rs }5000\ \text{and discount}=10\%$
$\displaystyle \therefore\ \text{SP}=\text{MP}-\text{Discount on MP}$
$\displaystyle =\text{Rs }\left(5000-\frac{5000\times 10}{100}\right)$
$\displaystyle =\text{Rs }\left(5000-500\right)=\text{Rs }4500$
$\displaystyle \text{and rate of GST}=12\%$
$\displaystyle \therefore\ 12\%\ \text{of SP}=\text{Rs }\left(\frac{4500\times 12}{100}\right)=\text{Rs }540$
$\displaystyle \text{Thus, the amount paid by the customer with GST}=\text{SP}+12\%\ \text{GST}$
$\displaystyle =\text{Rs }\left(4500+540\right)=\text{Rs }5040$

$\displaystyle \textbf{Question 5: }\ \text{The following bill shows the GST rates and the marked price of} \\ \text{articles A and B} \hspace{7.0cm} \text{ICSE Specimen Semester I 2022}$
$\displaystyle \text{BILL : GENERAL STORE}$
$\displaystyle \begin{array}{|c|c|c|}\hline \text{Articles} & \text{Marked price} & \text{Rate of GST} \\ \hline A & \text{Rs }300 & 12\% \\ \hline B & \text{Rs }1200 & 5\% \\ \hline \end{array}$
$\displaystyle \text{The total amount to be paid for the above bill is}$
$\displaystyle (a)\ \text{Rs }1548\qquad (b)\ \text{Rs }1596\qquad (c)\ \text{Rs }1560\qquad (d)\ \text{Rs }1536$
$\displaystyle \text{Answer:}$
$\displaystyle (b)\ \text{For article A, GST is 12\% on price Rs }300$
$\displaystyle \text{So, GST charged}=12\%\ \text{of Rs }300$
$\displaystyle =\frac{12}{100}\times 300=\text{Rs }36$
$\displaystyle \text{For article B, GST charged is 5\% on marked price}$
$\displaystyle \text{So, GST charged}=5\%\ \text{of Rs }1200$
$\displaystyle =\frac{5}{100}\times 1200=\text{Rs }60$
$\displaystyle \text{Hence, the total amount to be paid}$
$\displaystyle =\text{Total marked price}+\text{Total GST}$
$\displaystyle =300+1200+36+60=\text{Rs }1596$

$\displaystyle \textbf{Question 6: }\ \text{Rohan bought the following eatables for his friends}\qquad \text{ICSE 2024}$
$\displaystyle \text{Soham Sweet Mart: Bill}$
$\displaystyle \begin{array}{|c|c|c|c|c|}\hline \text{S.\ No.} & \text{Item} & \text{Price} & \text{Quantity} & \text{Rate of GST} \\ \hline 1 & \text{Laddu} & \text{Rs }500\ \text{per kg} & 2\ \text{kg} & 5\% \\ \hline 2 & \text{Pastries} & \text{Rs }100\ \text{per piece} & 12\ \text{pieces} & 18\% \\ \hline \end{array}$
$\displaystyle \text{Calculate }(i)\ \text{Total GST paid.}\ (ii)\ \text{Total bill amount including GST.}$
$\displaystyle \text{Answer:}$
$\displaystyle (a)\ \text{Price of Laddu}=\text{Rs }500\ \text{per kg}$
$\displaystyle \text{Price for 2 kg laddus}=2\times 500=\text{Rs }1000$
$\displaystyle \text{Rate of GST on laddu}=5\%$
$\displaystyle \text{GST}=\text{Rs }1000\times \frac{5}{100}=\text{Rs }50$
$\displaystyle \text{Cost of laddus}=\text{Rs }1000+\text{Rs }50=\text{Rs }1050$
$\displaystyle \text{Also, price of pastries}=\text{Rs }100\ \text{per piece}$
$\displaystyle \text{Price for 12 pieces}=12\times 100=\text{Rs }1200$
$\displaystyle \text{Rate of GST}=18\%$
$\displaystyle \text{GST}=\frac{1200\times 18}{100}=\text{Rs }216$
$\displaystyle \text{Cost of pastries}=\text{Rs }1200+\text{Rs }216=\text{Rs }1416$
$\displaystyle \text{Total GST paid}=\text{Rs }50+\text{Rs }216=\text{Rs }266$

$\displaystyle \textbf{Question 7: }\ \text{Mrs.\ Arora bought the following articles from a departmental store. }\text{ICSE 2023}$
$\displaystyle \begin{array}{|c|c|c|c|c|}\hline \text{S.\ No.} & \text{Item} & \text{Price} & \text{Rate of GST} & \text{Discount} \\ \hline 1 & \text{Hair Oil} & \text{Rs }1200 & 18\% & \text{Rs }100 \\ \hline 2 & \text{Cashew nuts} & \text{Rs }600 & 12\% & - \\ \hline \end{array}$
$\displaystyle \text{Find the }(i)\ \text{total GST paid.}\ (ii)\ \text{total bill amount including GST.}$
$\displaystyle \text{Answer:}$
$\displaystyle \begin{array}{|c|c|c|c|c|}\hline \text{S.\ No.} & \text{Item} & \text{Price} & \text{Rate of GST} & \text{Discounted Value} \\ \hline 1 & \text{Hair Oil} & \text{Rs }1200 & 18\% & \text{Rs }1100 \\ \hline 2 & \text{Cashew nuts} & \text{Rs }600 & 12\% & \text{Rs }600 \\ \hline \end{array}$
$\displaystyle \text{GST on Hair oil}=18\%\ \text{of }1100$
$\displaystyle =1100\times \frac{18}{100}=\text{Rs }198$
$\displaystyle \text{GST on cashew nuts}=12\%\ \text{of }600=600\times \frac{12}{100}=\text{Rs }72$
$\displaystyle (i)\ \text{Total GST Paid}=\text{Rs }\left(198+72\right)=\text{Rs }270$
$\displaystyle (ii)\ \text{Total bill amount including GST}$
$\displaystyle =\text{Total discounted amount}+\text{Total paid GST}$
$\displaystyle =\text{Rs }\left(1100+600\right)+270$
$\displaystyle =\text{Rs }1970$

$\displaystyle \textbf{Question 8: }\ \text{Miss Anjali goes to a mall to purchase a saree whose cost is} \\ \text{Rs }885\ \text{(list price).} \text{She tells the shopkeeper to reduce the price in such an extent} \\ \text{that she has to pay Rs }885, \text{inclusive GST which is at the rate of 18\%. Find the} \\ \text{reduction of price needed in the saree.}\hspace{7.0cm} \text{ICSE 2022}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Let the reduced price of saree be Rs }x.$
$\displaystyle \text{Then, amount of GST on Rs }x=18\%\ \text{of }x$
$\displaystyle =\frac{18}{100}\times x$
$\displaystyle \therefore\ \text{Miss Anjali pays the amount for saree}$
$\displaystyle =x+\frac{18x}{100}=\left(1+\frac{9}{50}\right)x=\frac{59}{50}x$
$\displaystyle \text{According to the given condition,}$
$\displaystyle \frac{59x}{50}=885\Rightarrow x=\frac{885\times 50}{59}=\text{Rs }750$
$\displaystyle \therefore\ \text{Reduced price of the saree}=\text{Rs }750$
$\displaystyle \text{Hence, the reduction needed is the price of saree}=\text{Rs }\left(885-750\right)=\text{Rs }135$

$\displaystyle \textbf{Question 9: }\ \text{Sandeep purchased a digital camera for Rs }25488,\ \text{which includes} \\ \text{10\% rebate} \text{on the list price and 18\% tax (under GST) on the remaining price.} \\ \text{Find the marked price of the digital camera.} \hspace{4.0cm} \text{ICSE 2023}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Price of digital camera}=\text{Rs }25488$
$\displaystyle \text{Rate of GST}=18\%$
$\displaystyle \text{CP of a digital camera}=x-10\%\ \text{of }x$
$\displaystyle =x-\frac{10}{100}x=\frac{9x}{10}$
$\displaystyle \text{Amount of GST on CP on Camera}$
$\displaystyle =\frac{9x}{10}+\left[\frac{18}{100}\times \frac{9x}{10}\right]$
$\displaystyle =\frac{9x}{10}\left[1+\frac{18}{100}\right]=\frac{9x}{10}\times \frac{118}{100}$
$\displaystyle \therefore\ \text{CP of a camera including tax}=\text{Rs }25488$
$\displaystyle \frac{118\times 9x}{1000}=25488$
$\displaystyle \Rightarrow x=\frac{25488\times 1000}{118\times 9}=\text{Rs }24000$

$\displaystyle \textbf{Question 10: }\ \text{The price of a spider toy is Rs }3136\ \text{inclusive tax (under GST)} \\ \text{at the rate of 12\%} \text{on its listed price. A buyer asks for a discount on the listed price,} \\ \text{so that after charging GST,} \text{the selling price becomes equal to the listed price. Find the} \\ \text{amount of discount which the seller has to allow.} \hspace{4.0cm} \text{ICSE 2024}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Let the listed price of spider toy be Rs }x\ \text{and the discount be Rs }y.$
$\displaystyle \text{Amount of GST on Rs }x=12\%\ \text{of }x$
$\displaystyle =\frac{12}{100}\times x=\text{Rs }\frac{3x}{25}$
$\displaystyle \text{Selling price of spider toy including tax}$
$\displaystyle =\text{Rs }\left(x+\frac{3x}{25}\right)=\text{Rs }\frac{28x}{25}$
$\displaystyle \text{According to the given condition,}$
$\displaystyle \frac{28x}{25}=3136$
$\displaystyle \Rightarrow x=\frac{3136\times 25}{28}=\text{Rs }2800$
$\displaystyle \therefore\ \text{List price of the spider toy}=\text{Rs }2800$
$\displaystyle \text{Now, the reduced price of the spider toy}$
$\displaystyle =\text{Rs }\left(2800-y\right)$
$\displaystyle \text{Now, amount of GST on Rs }\left(2800-y\right)$
$\displaystyle =12\%\ \text{of }\left(2800-y\right)$
$\displaystyle =\frac{12}{100}\times \left(2800-y\right)=\frac{3\left(2800-y\right)}{25}$
$\displaystyle \text{Now, new selling price of the spider toy}$
$\displaystyle =\left(2800-y\right)+\frac{3}{25}\left(2800-y\right)$
$\displaystyle =\left(2800-y\right)\left(1+\frac{3}{25}\right)=\left(2800-y\right)\times \frac{28}{25}$
$\displaystyle \text{According to the given condition, selling price of spider toy including GST = Listed price of spider toy}$
$\displaystyle \therefore\ \frac{28}{25}\left(2800-y\right)=2800$
$\displaystyle \Rightarrow \left(2800-y\right)=\frac{2800\times 25}{28}$
$\displaystyle \Rightarrow 2800-y=2500$
$\displaystyle \Rightarrow y=\text{Rs }300$
$\displaystyle \text{Hence, amount of discount is Rs }300.$

$\displaystyle \textbf{Question 11: }\ \text{Mr.\ Bedi visits the market and buys the following articles}\qquad \text{ICSE 2020}$
$\displaystyle \text{Medicines costing Rs }950,\ \text{GST @ 5\%}$
$\displaystyle \text{A pair of shoes costing Rs }3000,\ \text{GST @ 18\%}$
$\displaystyle \text{A laptop bag costing Rs }1000\ \text{with a discount of 30\%, GST @ 18\%. Calculate}$
$\displaystyle (i)\ \text{the total amount of GST paid.}$
$\displaystyle (ii)\ \text{the total bill amount including GST paid by Mr.\ Bedi.}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{GST amount on medicines}$
$\displaystyle =950\times \frac{5}{100}=\text{Rs }47.5$
$\displaystyle \text{GST amount on a pair of shoes}$
$\displaystyle =3000\times \frac{18}{100}=\text{Rs }540$
$\displaystyle \text{and GST amount on a laptop bag}$
$\displaystyle =1000\times \frac{70}{100}\times \frac{18}{100}=\text{Rs }126$
$\displaystyle (i)\ \text{Total amount of GST paid}$
$\displaystyle =\text{Rs }\left(47.5+540+126\right)=\text{Rs }713.5$
$\displaystyle (ii)\ \text{The total bill amount including GST paid by Mr.\ Bedi}$
$\displaystyle =\text{Cost of articles}+\text{Total amount of GST}$
$\displaystyle =950+3000+700+713.5=\text{Rs }5363.5$

Question 12: The price of a T.V. set inclusive of Sales Tax of 9% is Rs.13407. Find its marked price. If Sales Tax is increased to 13%, how much more does the customer has to pay for the T.V. [ICSE2002]
$\displaystyle \text{Answer:}$
Let Sales price of the T.V. $\displaystyle = \text{ Rs. } x$
Sales Tax on the T.V. $\displaystyle =9\% \text{ of Rs. } x = 0.09 x$
Total amount paid $\displaystyle x+0.09x = 1.09x = 13407 \Rightarrow x = \text{ Rs. } 12300$
If Sales Tax on the T.V. $\displaystyle =13 \% \text{ of Rs. } 12300$
The customer will have to pay $\displaystyle (13-9)\% \times 12300 = \text{ Rs. } 492$ more.

Question 13: The price of a washing machine, inclusive of Sales tax, is Rs.13530. If the Sales Tax is 10% find its basic cost price. [ICSE2003]
$\displaystyle \text{Answer:}$
Let Sales Price of the washing machine be $\displaystyle = \text{ Rs. } x$
Total amount paid $\displaystyle = \text{ Rs. } 13530$
Sales Tax $\displaystyle = 10\% \text{ of Rs. } x$
Therefore $\displaystyle x+10\% \text{ of Rs. } x = 13530 \Rightarrow x = \text{ Rs. } 12300$

Question 14: The catalog price of a colored T.V. is Rs.24000. The shopkeeper gives a discount of 8% on the list price. He gives a further off season discount of 5% on the balance, But Sales Tax at 10% is charged on the remaining amount. Find:
The sales Tax a customer has to pay.
The final price he has to pay for the T.V. [ICSE2001]
$\displaystyle \text{Answer:}$
Catalog price of a colored T.V. $\displaystyle = \text{ Rs. } 24000$
$\displaystyle \text{ Price after} 8\% \text{ discount } = \frac{100-8}{100} \times 24000 = 22080$
$\displaystyle \text{Price after} 5\% \text{off season discount } = \frac{100-5}{100} \times 22080 = \text{ Rs. } 20976$
$\displaystyle \text{Sales Tax } = \frac{10}{100} \times 20976 = \text{ Rs. } 2097.60$
Price paid by the customer $\displaystyle = \text{ Rs. } 20976 + Rs. 2097.60 = \text{ Rs. } 23073.60$

Question 15: A manufacturer marks an article at Rs.5000. He sells this article to a wholesaler at a discount of 25% on the marked price and the wholesaler sells it to a retailer at a discount of 15% on its marked price. If the retailer sells the article without any discount and at each stage the sales-tax is 8%, calculate the amount of VAT paid by:
The Wholesaler
The Retailer [ICSE2010]
$\displaystyle \text{Answer:}$
Market Price of the article for wholesaler $\displaystyle = \text{ Rs. } 5000$
$\displaystyle \text{Cost Price of the article for wholesaler } = \frac{100-25}{100} \times 5000 =Rs. 3750$
$\displaystyle \text{Amount of tax paid by the wholesaler } = \frac{8}{100} \times 3750 = \text{ Rs. } 300$
$\displaystyle \text{Cost Price of the article for retailer } = \frac{100-15}{100} \times 5000 =Rs. 4250$
$\displaystyle \text{Amount of tax paid by the retailer } = \frac{8}{100} \times 4250 = \text{ Rs. } 340$
Selling price of the article for retailer $\displaystyle = \text{ Rs. } 5000$
$\displaystyle \text{Amount of tax paid by the end customer } = \frac{8}{100} \times 5000 = \text{ Rs. } 400$
Vat paid by retailer $\displaystyle = 400 - 340 = \text{ Rs. } 60$
Vat paid by wholesaler $\displaystyle = 340 - 300 = \text{ Rs. } 40$

Question 16: The catalog price of a computer is Rs. 45000. The shopkeeper gives a discount of 7% on the listed price. He gives a further off season discount of 4% on the balance. However, Sales Tax at 8% is charged on the remaining amount. Find: i) the amount of sales tax that the customer has to pay ii) the final price he has to pay for the computer set. [ICSE2005]
$\displaystyle \text{Answer:}$
Listed Price $\displaystyle = \text{ Rs. } 45000$
$\displaystyle \text{Discount given } = \frac{7}{100} \times 45000 = \text{ Rs. } 3150$
Price after discount $\displaystyle = 45000 - 3150 = \text{ Rs. } 41850$
$\displaystyle \text{Off season discount } = \frac{4}{100} \times 41850 = \text{ Rs. } 1674$
Therefore Sale Price $\displaystyle = 41850-1674 = \text{ Rs. } 40176$

Question 17: Dinesh bought an article for Rs. 374, which included a discount of 15% on the marked price and a sales tax of 10% on the reduced price. Find the marked price of the article. [2007]
$\displaystyle \text{Answer:}$
Let the marked price $\displaystyle = \text{ Rs. } x$
$\displaystyle \text{Discount } = \frac{15}{100} \times x = 0.15x$
Sale price $\displaystyle = x-0.15x = \text{ Rs. } 0.85x$
$\displaystyle \text{Sales tax } = \frac{10}{100} \times 0.85x = \text{ Rs. } 0.085x$
Total price paid by Dinesh $\displaystyle = 0.85x + 0.085x = 0.935x = 374 \Rightarrow x = \frac{374}{0.935} = \text{ Rs. } 400$

Question 18: A manufacturer sells a washing machine to a wholesaler for Rs. 15000. The wholesaler sells it to a trader at a profit of Rs. 1200 and the trader in turns sells it to a consumer at a profit of Rs. 1800. If the rate of VAT is 8% find: i) the amount of VAT received by the state government on the sale of this machine from the manufacturer and the wholesaler. ii) the amount that the consumer pays for the machine. [ICSE2011]
$\displaystyle \text{Answer:}$
$\displaystyle \text{Tax received by the manufacturer } = \frac{8}{100} \times 1500 = \text{ Rs. } 1200$
For the trader the price $\displaystyle = 15000+1200= \text{ Rs. } 16200$
$\displaystyle \text{Tax paid by the trader } = \frac{8}{100} \times 16200 = \text{ Rs. } 1296$
Therefore VAT received from wholesaler $\displaystyle = 1296-1200 = \text{ Rs. } 96$
Price for the consumer $\displaystyle = 16200+1800 = \text{ Rs. } 18000$
$\displaystyle \text{Tax paid by the consumer } = \frac{8}{100} \times 18000 = \text{ Rs. } 1440$
Hence the total price paid by the consumer $\displaystyle = 18000+1440 = \text{ Rs. } 19440$

Question 19: The printed price of an article is Rs. 60000. The wholesaler allows a discount of 20% to the shopkeeper. The shopkeeper sells the article to the customer at the printed price. Sales tax (under VAT) is charged at the rate of 6% at every stage. Find: i) the cost to the shopkeeper inclusive of the tax ii) VAT paid by the shopkeeper to the Government iii) the cost to the customer inclusive of the tax. [ICSE2012]
$\displaystyle \text{Answer:}$
Printed Price $\displaystyle = \text{ Rs. } 60000$
$\displaystyle \text{Discounted price } = 60000 \times \Big(1- \frac{20}{100} \Big) = \text{ Rs. } 48000$
$\displaystyle \text{Price charged by the wholesaler } = 48000 + \frac{6}{100} \times 48000 = \text{ Rs. } 50880$
The cost to the shopkeeper inclusive of the tax $\displaystyle = \text{ Rs. } 50880$
VAT paid by the shopkeeper = Tax Charged – Tax Paid
$\displaystyle = \frac{6}{100} \times 60000 - \frac{6}{100} \times 48000 = \text{ Rs. } 720$
The cost to the customer inclusive of the tax $\displaystyle = 60000+ 3600 = \text{ Rs. } 63600$

Question 20: A shopkeeper buys a camera at a discount of 20% from the wholesaler, the printed price of the camera being Rs.1600 and the rate of sales tax is 6%. The shopkeeper sells it to the buyer at the printed price and charges tax at the same rate. Find:
The price at which the camera can be bought from the shopkeeper.
The VAT paid by the shopkeeper [ICSE2008]
$\displaystyle \text{Answer:}$
Printed Price of the camera $\displaystyle = \text{ Rs. } 1600$
Discount $\displaystyle = 20\%$
Sales Tax $\displaystyle = 6\%$
Cost Price of the shopkeeper $\displaystyle = 1600 \times 0.8 = \text{ Rs. } 1280$
$\displaystyle \text{Sales Tax on Cost Price } = 1280 \times \frac{6}{100} = \text{ Rs. } 76.80$
Sale Price $\displaystyle = \text{ Rs. } 1600$
$\displaystyle \text{Price the the customer have to pay } = 1600+1600 \times \frac{6}{100} = \text{ Rs. } 1696$
$\displaystyle \text{Sales Tax paid by the customer } = 1600 \times \frac{6}{100} = \text{ Rs. } 96$
VAT $\displaystyle = 96-76.80 = \text{ Rs. } 19.2$

Question 21: Tarun bought an article for Rs.8000 and spent Rs.1000 for transportation. He marked the article at Rs.11700 and sold it to a customer. If the customer had to pay 10% sales tax, Find:
The customer’s Price
His’s Profit percent [ICSE2010]
$\displaystyle \text{Answer:}$
Cost Price $\displaystyle = \text{ Rs. } 8000$
Overheads $\displaystyle = \text{ Rs. } 1000$
Listed Price $\displaystyle = \text{ Rs. } 11700$
Sales Tax rate $\displaystyle = 10\%$
$\displaystyle \text{Customer Price } = 11700+11700 \times \frac{10}{100} = \text{ Rs. } 12870$
Profit $\displaystyle = \frac{11700-8000-1000}{9000} = 30\%$

Question 22: A Shopkeeper sells an article at the listed price of Rs.1500 and the rate of VAT is 12% at each stage of sale. If the shopkeeper pays a VAT of Rs.36 to the Government, what was the price, inclusive of Tax, at which the shopkeeper purchased the article from the wholesaler? [ICSE2013]
$\displaystyle \text{Answer:}$
Listed price $\displaystyle = \text{ Rs. } 1500$
$\displaystyle \text{Sales Tax paid by the shopkeeper }= 1500 \times \frac{12}{100} = \text{ Rs. } 180$
Let the price at which the shopkeeper purchased the article $\displaystyle = \text{ Rs. } x$
Therefore
$\displaystyle 180 - x \times \frac{12}{100} = 36 \Rightarrow x = \text{ Rs. } 1200$
$\displaystyle \text{Sales tax paid }= 1200 \times \frac{12}{100} = \text{ Rs. } 144$
Total price paid by the shopkeeper $\displaystyle = 1200+144 = \text{ Rs. } 1344$

Question 23: A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being Rs.18000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the rate of sales tax is 8%, find:
The VAT paid by the shopkeeper
The total amount that the consumer pays for the washing machine. [ICSE2014]
$\displaystyle \text{Answer:}$
Printed Price $\displaystyle = \text{ Rs. } 18000$
Discount $\displaystyle =20\%$
Cost Price for the shopkeeper $\displaystyle = 18000 \times 0.80 = \text{ Rs. } 14400$
$\displaystyle \text{Sales Tax paid by the shopkeeper } = 14400 \times \frac{8}{100} = \text{ Rs. } 1152$
Selling price to the customer $\displaystyle = 18000 \times 0.90 = \text{ Rs. } 16200$
$\displaystyle \text{Sales tax paid by the customer } = 16200 \times \frac{8}{100} = \text{ Rs. } 1296$
VAT paid by the shopkeeper $\displaystyle = 1295 - 1152 = \text{ Rs. } 144$
The total amount paid by the customer $\displaystyle = 16200+1296 = \text{ Rs. } 17496$

$\displaystyle \textbf{Question 24: }\ \text{The SGST paid by a customer to the shopkeeper for an article} \\ \text{which is priced at Rs }500\text{ is Rs }15. \text{The rate of GST charged is}\qquad \text{ICSE Specimen 2023}$
$\displaystyle (a)\ 1.5\%\qquad (b)\ 3\%\qquad (c)\ 5\%\qquad (d)\ 6\%$
$\displaystyle \text{Answer:}$
$\displaystyle (d)\ \text{Given, the price of article is Rs }500$
$\displaystyle \text{and SGST}=\text{Rs }15$
$\displaystyle \therefore\ \text{GST}=2\times \text{SGST}=2\times \text{CGST}$
$\displaystyle \therefore\ \text{GST}=2\times 15=\text{Rs }30$
$\displaystyle \text{Now, GST rate}=\frac{\text{GST charged}}{\text{Price of article}}\times 100$
$\displaystyle =\frac{30}{500}\times 100=6\%$
$\displaystyle \text{Hence, the rate of GST is }6\%.$

$\displaystyle \textbf{Question 25: }\ \text{The percentage share of SGST of total GST for an Intra-State sale of} \\ \text{an article is} \hspace{7.0cm} \text{ICSE Specimen Semester I 2022}$
$\displaystyle (a)\ 25\%\qquad (b)\ 50\%\qquad (c)\ 75\%\qquad (d)\ 100\%$
$\displaystyle \text{Answer:}$
$\displaystyle (b)\ 50\%$

$\displaystyle \textbf{Question 26: }\ \text{The following bill shows the GST rates and the marked price of articles.}\text{ICSE Specimen 2023}$
$\displaystyle \text{Bill : Computers}$
$\displaystyle \begin{array}{|c|c|c|}\hline \text{Articles} & \text{Marked Price} & \text{Rate of GST} \\ \hline \text{Graphic Card} & \text{Rs }15500.00 & 18\% \\ \hline \text{Laptop adapter} & \text{Rs }1900.00 & 28\% \\ \hline \end{array}$
$\displaystyle \text{Find the total amount to be paid for the above bill.}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Given, the marked price of Graphic card is Rs }15500$
$\displaystyle \text{and rate of GST is }18\%$
$\displaystyle \therefore\ \text{Amount to be paid for graphic card}$
$\displaystyle =\text{Marked price}+\text{GST}$
$\displaystyle \text{Now, }18\%\ \text{of Rs }15500=\frac{18\times 15500}{100}=\text{Rs }2790$
$\displaystyle \text{Now, marked price of Laptop adapter is Rs }1900\ \text{and GST rate is }28\%$
$\displaystyle \therefore\ 28\%\ \text{of Rs }1900=\frac{28\times 1900}{100}=\text{Rs }532$
$\displaystyle \text{Amount paid for Laptop adapter}$
$\displaystyle =\text{Rs }\left(1900+532\right)=\text{Rs }2432$
$\displaystyle \text{and amount paid for Graphic card}$
$\displaystyle =\text{Rs }\left(15500+2790\right)=\text{Rs }18290$
$\displaystyle \text{Hence, the total amount paid for bill}$
$\displaystyle =\text{Rs }\left(2432+18290\right)=\text{Rs }20722$

$\displaystyle \textbf{Question 27: }\ \text{The price of an article is Rs }9350\ \text{which includes VAT at 10\%.} \\ \text{Find how much less a customer pays for the article, if the VAT on the article} \\ \text{decreases by 3\%.}\qquad \text{ICSE Specimen 2020}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{The price of an article}=\text{Rs }9350$
$\displaystyle \text{and VAT}=10\%$
$\displaystyle \text{So, VAT charge}=\frac{10}{100}\times 9350=\text{Rs }935$
$\displaystyle \text{If VAT is decrease by 3\%}$
$\displaystyle \text{Then, final VAT}=10\%-3\%=7\%$
$\displaystyle \text{So, VAT charge}=\frac{7}{100}\times 9350=\text{Rs }654.5$
$\displaystyle \text{Therefore, the difference between both charges}$
$\displaystyle =\text{Rs }\left(935-654.5\right)=\text{Rs }280.5$
$\displaystyle \text{The customer will pays Rs }280.5\ \text{less, if the VAT on the article decreases by 3\%.}$

$\displaystyle \textbf{Question 28: }\ \text{A manufacturer sells an article to a wholesaler with marked price} \\ \text{Rs }2000 \text{at a discount of 20\% on the marked price. The wholesaler sells it to a retailer} \\ \text{at a discount of 12\%} \text{on the marked price. The retailer sells the article at the} \\ \text{marked price. If the VAT paid by the wholesaler is Rs }11.20, \\ \text{find }(i)\ \text{rate of VAT.}\ (ii)\ \text{VAT paid by the retailer.}\qquad \text{ICSE Specimen 2020}$
$\displaystyle \text{Answer:}$
$\displaystyle \therefore\ \text{Marked price}=\text{Rs }2000$
$\displaystyle (i)\ \text{Discount got by wholesaler}=20\%$
$\displaystyle \text{So, price after discount (for wholesaler)}$
$\displaystyle =2000-2000\times \frac{20}{100}=\text{Rs }1600$
$\displaystyle \text{Let wholesaler paid }x\%\ \text{VAT.}$
$\displaystyle \text{Therefore, }x\%\ \text{of Rs }1600=\text{Rs }11.20$
$\displaystyle \Rightarrow \frac{x}{100}\times 1600=11.20$
$\displaystyle \Rightarrow x=\frac{11.2}{16}=0.7\%$
$\displaystyle (ii)\ \text{Now, retailer get discount of 12\% on the marked price.}$
$\displaystyle \text{So, price for retailer}=2000-\frac{12}{100}\times 2000=\text{Rs }1760$
$\displaystyle \text{and}\qquad \text{VAT}=0.7\%$
$\displaystyle \text{So, VAT paid by retailer}=\frac{0.7}{100}\times 1760=\text{Rs }12.32$

$\displaystyle \textbf{Question 29: }\ \text{The manufacturer sold a TV to a wholesaler for Rs }7000. \\ \text{The wholesaler sold it to a trader at a profit of Rs }1000. \text{If the trader sold it} \\ \text{to the customer at a profit of Rs }1500,\ \text{then find}$
$\displaystyle (i)\ \text{the total VAT (Value Added Tax) collected by the State Government at the rate of 5\%.}$
$\displaystyle (ii)\ \text{the amount that the customer pays for the TV.}\qquad \text{ICSE Specimen 2017}$
$\displaystyle \text{Answer:}$
$\displaystyle (i)\ \text{Amount of tax collected by the manufacturer}$
$\displaystyle =5\%\ \text{of Rs }7000=\frac{5}{100}\times 7000=\text{Rs }350$
$\displaystyle \text{Since, the wholesaler earns a profit of Rs }1000,\ \text{the value added by the wholesaler}=\text{Rs }1000$
$\displaystyle \therefore\ \text{The amount of VAT to be paid by wholesaler}$
$\displaystyle =5\%\ \text{of }1000=\frac{5}{100}\times 1000=\text{Rs }50$
$\displaystyle \text{Also, since the trader earns the profit of Rs }1500,\ \text{the value added by the trader}=\text{Rs }1500$
$\displaystyle \therefore\ \text{The amount of VAT to be paid by trader}$
$\displaystyle =5\%\ \text{of }1500=\frac{5}{100}\times 1500=\text{Rs }75$
$\displaystyle \therefore\ \text{The total VAT collected by the State Government}=350+50+75=\text{Rs }475$
$\displaystyle (ii)\ \text{The value of TV paid by customer}$
$\displaystyle =\text{The price charge by manufacturer}+\text{Profit of wholesaler}+\text{Profit of trader}$
$\displaystyle =7000+1000+1500=\text{Rs }9500$
$\displaystyle \text{Tax paid by customer}=5\%\ \text{of }9500=\frac{5}{100}\times 9500=\text{Rs }475$
$\displaystyle \therefore\ \text{The total amount paid by customer}$
$\displaystyle =9500+475=\text{Rs }9975$

$\displaystyle \textbf{Question 30. }\text{Dinesh bought an article for Rs. }374\text{, which included a discount of }15\%\text{ on}$
$\displaystyle \text{the marked price and a sales tax of }10\%\text{ on the reduced price. Find the marked}$
$\displaystyle \text{price of the article.}\hspace{0.2cm}\text{[ICSE 2007]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Let the marked price be Rs. }x$
$\displaystyle \text{Discount}=15\%\text{ of }x=\frac{15x}{100}$
$\displaystyle \text{Reduced price}=x-\frac{15x}{100}=\frac{85x}{100}$
$\displaystyle \text{Sales tax}=10\%\text{ of }\frac{85x}{100}=\frac{10}{100}\times\frac{85x}{100}$
$\displaystyle \text{Amount paid}=\frac{85x}{100}+\frac{10}{100}\times\frac{85x}{100}$
$\displaystyle =\frac{85x}{100}\times\frac{110}{100}$
$\displaystyle =\frac{935x}{1000}$
$\displaystyle \frac{935x}{1000}=374$
$\displaystyle x=\frac{374\times1000}{935}$
$\displaystyle x=400$
$\displaystyle \therefore \text{Marked price of the article = Rs. }400$
$\\$

$\displaystyle \textbf{Question 31. }\text{A dealer buys an article for Rs. }2400\text{ and allows a discount of }20\%\text{ on the}$
$\displaystyle \text{marked price and still makes a profit of }15\%.\text{ Find:} \hspace{0.2cm}\text{[ICSE 2015]}$
$\displaystyle \text{(i) the marked price of the article}$
$\displaystyle \text{(ii) the amount paid by a customer if there is a sales tax of }8\%\text{ charged on the}$
$\displaystyle \text{selling price.}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Cost Price (C.P.) = Rs. }2400$
$\displaystyle \text{Profit} = 15\%\text{ of C.P.}$
$\displaystyle \text{Selling Price (S.P.)}=2400+\frac{15}{100}\times2400$
$\displaystyle =2400+360$
$\displaystyle =2760$
$\displaystyle \text{Let the marked price be Rs. }x$
$\displaystyle \text{Discount}=20\%\text{ of }x$
$\displaystyle \text{S.P.}=x-\frac{20x}{100}=\frac{80x}{100}$
$\displaystyle \frac{80x}{100}=2760$
$\displaystyle x=\frac{2760\times100}{80}$
$\displaystyle =3450$
$\displaystyle \therefore \text{(i) Marked Price = Rs. }3450$
$\displaystyle \text{Sales Tax}=8\%\text{ of }2760$
$\displaystyle =\frac{8}{100}\times2760$
$\displaystyle =220.80$
$\displaystyle \text{Amount paid by customer}=2760+220.80$
$\displaystyle =2980.80$
$\displaystyle \therefore \text{(ii) Amount paid by customer = Rs. }2980.80$
$\\$

$\displaystyle \textbf{Question 32. }\text{A trader gives two successive discounts of }15\%\text{ and }10\%\text{ on the marked}$
$\displaystyle \text{price of an article.} \hspace{0.2cm}\text{[ICSE 1996]}$
$\displaystyle \text{(i) If the marked price was Rs. }100\text{, what would be the selling price?}$
$\displaystyle \text{(ii) The actual selling price is Rs. }7650.\text{ Calculate the actual marked price.}$
$\displaystyle \text{The actual marked price is }25\%\text{ more than the cost price. Calculate:}$
$\displaystyle \text{(i) The cost price}$
$\displaystyle \text{(ii) The profit or loss percent}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{(i) Marked Price = Rs. }100$
$\displaystyle \text{After first discount of }15\%,\text{ price}=100-\frac{15}{100}\times100$
$\displaystyle =85$
$\displaystyle \text{After second discount of }10\%,\text{ S.P.}=85-\frac{10}{100}\times85$
$\displaystyle =76.50$
$\displaystyle \therefore \text{Selling Price = Rs. }76.50$
$\displaystyle \text{(ii) Let the actual marked price be Rs. }x$
$\displaystyle \text{Selling Price after successive discounts}=\frac{85}{100}\times\frac{90}{100}\times x$
$\displaystyle =\frac{7650}{10000}x$
$\displaystyle =0.765x$
$\displaystyle 0.765x=7650$
$\displaystyle x=\frac{7650}{0.765}=10000$
$\displaystyle \therefore \text{Actual Marked Price = Rs. }10000$
$\displaystyle \text{Marked Price is }25\%\text{ more than Cost Price}$
$\displaystyle \text{Marked Price}=125\%\text{ of Cost Price}$
$\displaystyle \text{C.P.}=\frac{100}{125}\times10000$
$\displaystyle =8000$
$\displaystyle \therefore \text{Cost Price = Rs. }8000$
$\displaystyle \text{Loss}=8000-7650=350$
$\displaystyle \text{Loss \%}=\frac{350}{8000}\times100$
$\displaystyle =4.375\%$
$\displaystyle \approx 4.38\%$
$\displaystyle \therefore \text{Loss Percent = }4.38\%$
$\\$

$\displaystyle \textbf{Question 33. }\text{A colour T.V. is marked for sale for Rs. }17600\text{, which includes sales tax at}$
$\displaystyle 10\%.\text{ Calculate the sales tax in rupees.} \hspace{0.2cm}\text{[ICSE 2000]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Let the price of the T.V. excluding sales tax be Rs. }x$
$\displaystyle \text{Sales tax}=10\%\text{ of }x=\frac{10x}{100}$
$\displaystyle \text{Price including sales tax}=x+\frac{10x}{100}$
$\displaystyle =\frac{110x}{100}$
$\displaystyle \frac{110x}{100}=17600$
$\displaystyle x=\frac{17600\times100}{110}$
$\displaystyle =16000$
$\displaystyle \text{Sales tax}=17600-16000$
$\displaystyle =1600$
$\displaystyle \therefore \text{Sales tax = Rs. }1600$
$\\$

$\displaystyle \textbf{Question 34. }\text{The catalogue price of a colour T.V. is Rs. }24000.\text{ The shopkeeper gives a discount}$
$\displaystyle \text{of }8\%\text{ on the listed price. He gives a further off season discount of }5\%\text{ on the balance.}$
$\displaystyle \text{But sales tax at }10\%\text{ is charged on the remaining amount. Find}$
$\displaystyle \text{(a) The sales tax amount a customer has to pay.}$
$\displaystyle \text{(b) The final price he has to pay for the colour T.V.} \hspace{0.2cm}\text{[ICSE 2001]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Catalogue price = Rs. }24000$
$\displaystyle \text{After discount of }8\%,\text{ price}=24000-\frac{8}{100}\times24000$
$\displaystyle =24000-1920$
$\displaystyle =22080$
$\displaystyle \text{After further discount of }5\%,\text{ remaining amount}=22080-\frac{5}{100}\times22080$
$\displaystyle =22080-1104$
$\displaystyle =20976$
$\displaystyle \text{Sales tax}=10\%\text{ of }20976$
$\displaystyle =\frac{10}{100}\times20976$
$\displaystyle =2097.60$
$\displaystyle \therefore \text{(a) Sales tax amount = Rs. }2097.60$
$\displaystyle \text{Final price}=20976+2097.60$
$\displaystyle =23073.60$
$\displaystyle \therefore \text{(b) Final price = Rs. }23073.60$
$\\$

$\displaystyle \textbf{Question 35. }\text{The price of a T.V. set inclusive of sales tax of }9\%\text{ is Rs. }13407.\text{ Find its}$
$\displaystyle \text{marked price. If the sales tax is increased to }13\%,\text{ how much more does the customer pay}$
$\displaystyle \text{for the T.V.?} \hspace{0.2cm}\text{[ICSE 2002]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Let the marked price be Rs. }x$
$\displaystyle \text{Price including }9\%\text{ sales tax}=x+\frac{9x}{100}$
$\displaystyle =\frac{109x}{100}$
$\displaystyle \frac{109x}{100}=13407$
$\displaystyle x=\frac{13407\times100}{109}$
$\displaystyle =12300$
$\displaystyle \therefore \text{Marked price = Rs. }12300$
$\displaystyle \text{New price including }13\%\text{ sales tax}=12300+\frac{13}{100}\times12300$
$\displaystyle =12300+1599$
$\displaystyle =13899$
$\displaystyle \text{Extra amount paid}=13899-13407$
$\displaystyle =492$
$\displaystyle \therefore \text{Customer pays Rs. }492\text{ more}$
$\\$

$\displaystyle \textbf{Question 36. }\text{The price of a washing machine, inclusive of sales tax is Rs. }13530.\text{ If the}$
$\displaystyle \text{sales tax is }10\%,\text{ find its basic price.} \hspace{0.2cm}\text{[ICSE 2003]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Let the basic price be Rs. }x$
$\displaystyle \text{Price including }10\%\text{ sales tax}=x+\frac{10x}{100}$
$\displaystyle =\frac{110x}{100}$
$\displaystyle \frac{110x}{100}=13530$
$\displaystyle x=\frac{13530\times100}{110}$
$\displaystyle =12300$
$\displaystyle \therefore \text{Basic price = Rs. }12300$
$\\$

$\displaystyle \textbf{Question 37. }\text{Tarun bought an article for Rs. }8000\text{ and spent Rs. }1000\text{ for transportation.}$
$\displaystyle \text{He marked the article at Rs. }11700\text{ and sold it to a customer. If the customer had}$
$\displaystyle \text{to pay }10\%\text{ sales tax, find:} \hspace{0.2cm}\text{[ICSE 2010]}$
$\displaystyle \text{(i) The customer's price}$
$\displaystyle \text{(ii) Tarun's profit percent}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Cost Price}=8000+1000=9000$
$\displaystyle \text{Selling Price}=11700$
$\displaystyle \text{Sales tax}=10\%\text{ of }11700$
$\displaystyle =\frac{10}{100}\times11700$
$\displaystyle =1170$
$\displaystyle \text{Customer's price}=11700+1170$
$\displaystyle =12870$
$\displaystyle \therefore \text{(i) Customer's price = Rs. }12870$
$\displaystyle \text{Profit}=11700-9000=2700$
$\displaystyle \text{Profit \%}=\frac{2700}{9000}\times100$
$\displaystyle =30\%$
$\displaystyle \therefore \text{(ii) Tarun's profit percent = }30\%$
$\\$

$\displaystyle \textbf{Question 38. }\text{Ms. Chawla goes to a shop to buy a leather coat which costs Rs. }735. \text{ The}$
$\displaystyle \text{rate of sales tax is }5\%.\text{ She tells the shopkeeper to reduce the price of the coat,}$
$\displaystyle \text{such that she has to pay only Rs. }735\text{ inclusive of sales tax. Find the reduction}$
$\displaystyle \text{needed in the price of the coat.} \hspace{0.2cm}\text{[ICSE 2004]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Let the reduced price of the coat be Rs. }x$
$\displaystyle \text{Price including }5\%\text{ sales tax}=x+\frac{5x}{100}$
$\displaystyle =\frac{105x}{100}$
$\displaystyle \frac{105x}{100}=735$
$\displaystyle x=\frac{735\times100}{105}$
$\displaystyle =700$
$\displaystyle \text{Original price of the coat}=735$
$\displaystyle \text{Reduction needed}=735-700$
$\displaystyle =35$
$\displaystyle \therefore \text{Reduction needed in the price of the coat = Rs. }35$
$\\$

$\displaystyle \textbf{Question 39. }\text{A shopkeeper bought an article for Rs. }3450.\text{ He marks the price of the}$
$\displaystyle \text{article }16\%\text{ above the cost price. The rate of sales tax charged on the article}$
$\displaystyle \text{is }10\%.\text{ Find the:} \hspace{0.2cm}\text{[ICSE 2015]}$
$\displaystyle \text{(i) marked price of the article.}$
$\displaystyle \text{(ii) price paid by a customer who buys the article.}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Cost Price = Rs. }3450$
$\displaystyle \text{Marked Price}=3450+\frac{16}{100}\times3450$
$\displaystyle =3450+552$
$\displaystyle =4002$
$\displaystyle \therefore \text{(i) Marked Price = Rs. }4002$
$\displaystyle \text{Sales tax}=10\%\text{ of }4002$
$\displaystyle =\frac{10}{100}\times4002$
$\displaystyle =400.20$
$\displaystyle \text{Price paid by customer}=4002+400.20$
$\displaystyle =4402.20$
$\displaystyle \therefore \text{(ii) Price paid by customer = Rs. }4402.20$
$\\$

$\displaystyle \textbf{Question 40. }\text{Kiran purchases an article for Rs. }5400\text{ which includes }10\%\text{ rebate on the}$
$\displaystyle \text{marked price and }20\%\text{ sales tax on the remaining price. Find the marked}$
$\displaystyle \text{price of the article.} \hspace{0.2cm}\text{[ICSE 2006]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Let the marked price be Rs. }x$
$\displaystyle \text{Price after }10\%\text{ rebate}=x-\frac{10x}{100}=\frac{90x}{100}$
$\displaystyle \text{Sales tax}=20\%\text{ of }\frac{90x}{100}$
$\displaystyle =\frac{20}{100}\times\frac{90x}{100}$
$\displaystyle \text{Amount paid}= \frac{90x}{100}+\frac{20}{100}\times\frac{90x}{100}$
$\displaystyle =\frac{90x}{100}\times\frac{120}{100}$
$\displaystyle =1.08x$
$\displaystyle 1.08x=5400$
$\displaystyle x=\frac{5400}{1.08}$
$\displaystyle =5000$
$\displaystyle \therefore \text{Marked Price = Rs. }5000$
$\\$

$\displaystyle \textbf{Question 41. }\text{A manufacturer sells a washing machine to a wholesaler for Rs. }15000.\text{ The}$
$\displaystyle \text{wholesaler sells it to a trader at a profit of Rs. }1200\text{ and the trader in turn sells}$
$\displaystyle \text{it to a consumer at a profit of Rs. }1800.\text{ If the rate of VAT is }8\%,\text{ find:}$
$\displaystyle \text{(i) The amount of VAT received by the State Government on the sale of this machine}$
$\displaystyle \text{from the manufacturer and the wholesaler.}$
$\displaystyle \text{(ii) The amount that the consumer pays for the machine.}\hspace{0.2cm}\text{[ICSE 2011]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Manufacturer's selling price}=15000$
$\displaystyle \text{VAT from manufacturer}=8\%\text{ of }15000$
$\displaystyle =\frac{8}{100}\times15000=1200$
$\displaystyle \therefore \text{VAT received from manufacturer = Rs. }1200$
$\displaystyle \text{Wholesaler's selling price}=15000+1200=16200$
$\displaystyle \text{VAT on wholesaler's selling price}=8\%\text{ of }16200$
$\displaystyle =\frac{8}{100}\times16200=1296$
$\displaystyle \text{VAT already paid}=1200$
$\displaystyle \text{VAT paid by wholesaler}=1296-1200=96$
$\displaystyle \therefore \text{VAT received from wholesaler = Rs. }96$
$\displaystyle \text{Trader's selling price}=16200+1800=18000$
$\displaystyle \text{VAT}=8\%\text{ of }18000$
$\displaystyle =\frac{8}{100}\times18000=1440$
$\displaystyle \text{Amount paid by consumer}=18000+1440$
$\displaystyle =19440$
$\displaystyle \therefore \text{Amount paid by consumer = Rs. }19440$
$\\$

$\displaystyle \textbf{Question 42. }\text{A wholesaler buys a TV from the manufacturer for Rs. }25000.\text{ He marks the}$
$\displaystyle \text{price of the TV }20\%\text{ above his cost price and sells it to a retailer at a }10\%$
$\displaystyle \text{discount on the marked price. If the rate of VAT is }8\%,\text{ find the:}$
$\displaystyle \text{(i) marked price}$
$\displaystyle \text{(ii) retailer's cost price inclusive of tax.}$
$\displaystyle \text{(iii) VAT paid by the wholesaler.}\hspace{0.2cm}\text{[ICSE 2015]}$
$\displaystyle \text{Answer:}$
$\displaystyle \text{Cost price for wholesaler}=25000$
$\displaystyle \text{Marked Price}=25000+\frac{20}{100}\times25000$
$\displaystyle =25000+5000=30000$
$\displaystyle \therefore \text{(i) Marked Price = Rs. }30000$
$\displaystyle \text{Selling price after }10\%\text{ discount}=30000-\frac{10}{100}\times30000$
$\displaystyle =30000-3000=27000$
$\displaystyle \text{VAT}=8\%\text{ of }27000$
$\displaystyle =\frac{8}{100}\times27000=2160$
$\displaystyle \text{Retailer's cost price inclusive of tax}=27000+2160$
$\displaystyle =29160$
$\displaystyle \therefore \text{(ii) Retailer's cost price inclusive of tax = Rs. }29160$
$\displaystyle \text{Input VAT}=8\%\text{ of }25000$
$\displaystyle =\frac{8}{100}\times25000=2000$
$\displaystyle \text{Output VAT}=2160$
$\displaystyle \text{VAT paid by wholesaler}=2160-2000=160$
$\displaystyle \therefore \text{(iii) VAT paid by wholesaler = Rs. }160$
$\\$