Question

A ready-made garment shopkeeper gives 5% discount on the dress of Rs 1000 and charges 5% GST on the remaining amount, then what is the purchase price of the dress for the customer

Answer 1

Printed price of dress = Rs 1,000
Discount on dress = 5% of Rs 1,000 = 

\[\frac{5}{100} \times 1000\] = Rs 50
Taxable value of dress = Rs 1,000 − Rs 50 = Rs 950
Rate of GST = 5%
Amount of GST on dress = 5% of Rs 950 =  \[\frac{5}{100} \times 950\] = Rs 47.50
∴ Purchase price of dress = Taxable value of dress + Amount of GST on dress
= Rs 950 + Rs 47.50
= Rs 997.50
Thus, the purchase price of the dress for the customer is Rs 997.50.