Question

A readymade garment shopkeeper gives 5% discount on a dress of  2,000 and charges  5% GST on the remaining amount. What is the purchase price of the dress for the customer?

Answer 1

Printed price of dress = Rs 2000

Discount on dress = 5% of Rs 2000 = `5/100 xx 2000 = 100`

Taxable value of dress = Rs 2000 - Rs 100 = Rs 1900

Rate of GST = 5%

Amount of GST on dress = 5% of Rs 1900 = `5/100 xx 1900 = "Rs"  95` 

∴ Purchase price of dress = Taxable value of dress + Amount of GST on dress

= Rs 1900 + Rs. 95

= Rs 1995

Thus, the purchase price of the dress for the customer is Rs 1995.