A retailer purchases goods for Rs. $4000$ + $5\%$ GST and sells for Rs. $5000$ + $5\%$ GST. GST payable to…

A retailer purchases goods for Rs. $4000$ + $5\%$ GST and sells for Rs. $5000$ + $5\%$ GST. GST payable to government (after input tax credit) is
  1. Rs. $50$
  2. Rs. $250$
  3. Rs. $200$
  4. Rs. $300$

Solution

Output GST $= 250$. Input GST $= 200$. Net payable $= 250 - 200 = 50$.

Asked in: MH-SSC-9

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