1(xiii)
The marked price of an article is ₹1,375. If the CGST is charged at a rate of 4%, then the price of the article including GST is:
- (a)₹55
- (b)₹110
- (c)₹1,430
- (d)₹1,485
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Given,
Marked price of the article = ₹1,375.
The CGST (Central Goods and Services Tax) = 4%.
As we know that the total GST is composed of CGST and SGST (State Goods and Services Tax) at equal rates, the total GST rate is 8% (4% CGST + 4% SGST).
GST = 8% of marked price of the article
= $\frac{8}{100} \times 1375 = \frac{8 \times 1375}{100} = \frac{11000}{100}$ = ₹110
Final Price = Marked Price + GST Amount
= ₹1,375 + ₹110 = ₹1,485
Hence, option 4 is the correct option.