Question

The taxable value of a wrist watch belt is Rs. 586. If the rate of GST is 18%, then find the price of the belt for the customer?

Answer 1

Hint: We start solving the problem by recalling the fact that the price for the customer is the sum of the taxable value and GST that laid on the taxable value. We then calculate the value of GST by using the fact that GST is laid on the taxable value. We calculate the value of GST by using the fact that x% of y is defined as $\dfrac{x}{100}\times y$. We then add the taxable value and GST to find the price for the customer.

Complete step-by-step answer:
According to the problem, we have given the taxable value of a wrist watch belt as Rs. 586 and the rate of GST is 18%. We need to find the price of the belt for the customer.
We know that the price for the customer is the sum of the taxable value and GST that laid on the taxable value.
So, we have the taxable value Rs. 586. We need to find the GST laid on it.
So, we have GST = 18% on the taxable value.
We know that x% of y is defined as $\dfrac{x}{100}\times y$.
$\Rightarrow GST=\dfrac{18}{100}\times 586$.
$\Rightarrow GST=18\times 5.86$.
$\Rightarrow GST=105.48$.
So, we have got the GST laid on the taxable value Rs. 586 as Rs. 105.48.
Now, we know that
$\Rightarrow $Price of the belt for the customer = Taxable value + GST.
$\Rightarrow $Price of the belt for the customer = $586+105.48$.
$\Rightarrow $Price of the belt for the customer = $Rs.691.48$.
We have found the price of the belt for the customer as $Rs.691.48$.
∴ The price of the belt for the customer is $Rs.691.48$.

Note: We should know that the tax should be laid on the taxable value not on the selling price for the customer. We should not make calculation mistakes while solving this problem. We can also find the profit if the cost that incurred for the shopkeeper is given in the problem by using the obtained selling price of the wrist watch belt. We should not directly multiply 18 with the taxable value which gives the tax more than the taxable value. Because this gives an error in the solution even if we make the correct calculations.