Some goods/services are supplied for Rs 20,000 from Mathura (U.P.) to Ratlam (M.P.) and then from Ratlam to Indore (M.P.). If at each stage, the rate of tax under GST system is 12% and the profit made by the dealer in Ratlam is Rs 3,750, find the cost of the article (in Indore) under GST.

Answer

To find the cost of the article in Indore under GST, we will break down the problem step by step.

### Step 1: Initial Cost from Mathura to Ratlam
The initial cost of the goods/services supplied from Mathura to Ratlam is given as Rs. 20,000.

### Step 2: Calculate GST from Mathura to Ratlam
The GST rate is 12%. We need to calculate the GST on the initial cost:
\[ \text{GST} = 12\% \text{ of } 20,000 = \frac{12}{100} \times 20,000 = 2,400 \]

### Step 3: Calculate Invoice Price from Mathura to Ratlam
Now, we add the GST to the initial cost to find the invoice price:
\[ \text{Invoice Price} = \text{Initial Cost} + \text{GST} = 20,000 + 2,400 = 22,400 \]

### Step 4: Calculate Cost Price in Ratlam
The dealer in Ratlam makes a profit of Rs. 3,750. Therefore, we need to add this profit to the invoice price:
\[ \text{Cost Price in Ratlam} = \text{Invoice Price} + \text{Profit} = 22,400 + 3,750 = 26,150 \]

### Step 5: Calculate GST from Ratlam to Indore
Now, we need to calculate the GST on the cost price in Ratlam:
\[ \text{GST} = 12\% \text{ of } 26,150 = \frac{12}{100} \times 26,150 = 3,138 \]

### Step 6: Calculate Final Cost in Indore
Finally, we add the GST to the cost price in Ratlam to find the final cost of the article in Indore:
\[ \text{Final Cost in Indore} = \text{Cost Price in Ratlam} + \text{GST} = 26,150 + 3,138 = 29,288 \]

### Final Answer
The cost of the article in Indore under GST is Rs. 29,288.

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