Question

The taxable value of a wrist watch belt is 586. Rate of GST is 18%. find the price of the belt for the consumer.

Answer 1

Hint:
Here, we will first calculate the amount of GST by using the given information. Then we will add the obtained GST to the taxable value of the watch to find the amount paid by the consumer. We will then fill the information in the blank boxes.

Complete step by step solution:
The value of wrist watch belt is Rs.586.
Taxable value \[= Rs.586\]
The GST rate that will be added to it is 18%.
Now, we will find the amount of GST.
Amount of GST $ = 18\% $ of 586
$ \Rightarrow $ Amount of GST $ = \dfrac{{18}}{{100}} \times 586$
Multiplying the terms, we get
$ \Rightarrow $ Amount of GST $ = 105.48$
Now we will find the amount paid by the consumer which is the sum of taxable value and GST.
Amount paid by the consumer $ = $ Taxable value \[+\] GST
$ \Rightarrow $ Amount paid by the consumer $ = 586 + 105.48$
Adding the terms, we get
$ \Rightarrow $ Amount paid by the consumer $ = 691.48$
So the amount paid by the consumer is Rs. $ 691.48$
Now we can fill the detail in the box given in the question as follows:
Taxable value of wrist watch belt = Rs 586.
Rate of GST= 18%
$\therefore $ GST= $\dfrac{{18}}{{100}}$$ \times $ $586$ = Rs $105.48$
$\therefore $ Amount paid=Taxable value + GST
=$586 + 105.48$

= Rs$691.48$

Note:
GST is the tax that is added to the goods when it is sold to a consumer. GST is the amount we get by multiplying the rate to the original amount. Rate is given which is to be multiplied by the Taxable amount and then that GST amount is added to the taxable value. The taxable amount is the original amount of the goods.