Question

For a trader, the marked price of a refrigerator = ₹15680 exclusive of GST (GST is 12%). Gagan, a customer for this refrigerator, asks the trader to reduce the price of the refrigerator to such an extent that its reduced price plus GST is equal to the marked price of the refrigerator. Find the required reduction.

Answer 1

given:

• Marked Price (MP) of the refrigerator = ₹15,680 (exclusive of GST)

• GST = 12%

• Gagan wants to pay a final price (after GST) equal to the marked price, i.e., ₹15,680

• Let the reduced price before GST be ₹x

Total Amount Paid After GST

Final Price = `x + 12% of  x = x (1+12/100) = 1.12x`

1.12x = 15680

`x = 15680/1.12 = 14000`

So, the reduced price before GST is ₹14,000.

Reduction = Marked Price – Reduced Price

= 15680 − 14000

= ₹1680