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5 marksDifficulty: Hard

A shopkeeper in Lucknow buys an article from a dealer in Kanpur for ₹20,000 and sells it to a consumer in Lucknow at a profit of 20%. The rate of GST is 18%. Find (i) the tax paid by the shopkeeper on the purchase, (ii) the tax collected from the consumer, and (iii) the net tax paid by the shopkeeper.

Original Khojo Papers practice question — not from a past board paper.

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