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ICSEClass 10MathematicsGoods And Service Tax (GST)01 Mark2024 Moderate

QQuestion

For an Intra-state sale, CGST paid = ₹120. The marked price of the article is ₹2000. The rate of GST is:

(a) 6%

(b) 10%

(c) 12%

(d) 16.67%

Exam-ready answer • 01 Mark

Answer

(c) 12%

Explanation:

CGST% = \frac{\text{CGST}}{\text{Marked Price}} × 100

⇒ CGST% = \frac{120}{2000} × 100

⇒ CGST% = 6%

For an intra-state sale:

GST% = 2 × CGST%

⇒ GST% = 2 × 6%

⇒ GST% = 12%

Therefore, the rate of GST is 12%.

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