Question

A student’s uniform show-room gives a 10% discount on the uniform of Rs. 700 and charges 5% GST on the remaining amount, then what is the purchase price of the uniform for the customers?

Answer 1

Hint:Find the discount in rupees and subtract it from the original price. Now GST is added to the revised price. Take GST of 5% in the discounted price and add the GST and price together to get the purchasing price of the customer.

Complete step-by-step answer:
It is said that a student’s uniform show-room gives a 10% discount.
The original cost of uniform = Rs. 700.
Now it is said that there is a 10% discount on Rs. 700 of the uniform.
\[\therefore \]Discount of 10% = 10% of 700 = \[\dfrac{10}{100}\times 700=70\].
\[\therefore \]A discount of Rs. 70 is given on the uniform.
Thus the price of uniform after the discount becomes,
Price = original cost of uniform – discount
= 700 – 70 = 630.
Thus the price of the uniform after the discount is Rs. 630.
Now it is said that a GST of 5% is given on the new price of the uniform.
Thus the GST on the uniform = 5% of Rs. 630 = \[\dfrac{5}{100}\times 630=31.5\] Rupees.
Thus the price of the uniform = price of the uniform with discount + GST
= Rs. 630 + Rs. 31.5 = Rs. 661.5
Thus the price of the uniform becomes Rs. 661.5 after discount and GST. So the customer purchases the uniform at Rs. 661.5.

Note:GST is the goods and services tax, which is an indirect tax used in India on the supply of goods and services. Thus GST is added to the price and not subtracted from it. So remember about GST and discount while solving it.