Question

A shopkeeper marked a pressure cooker at ₹ 1800. The rate of GST on pressure cooker is 12%. The customer has only ₹ 1792 with him and he requests the shopkeeper to reduce the price so that he can buy the cooker in ₹ 1792. What percent discount must the shopkeeper give?

Answer 1

Given:

Marked price = ₹ 1800 price excluding GST

GST = 12%

Customer can pay total inclusive of GST = ₹ 1792

Step-wise calculation:

1. Let reduced price excluding GST = x.

2. Total to be paid = x + 12% of x = 1.12x, so 1.12x = 1792.

3. x = 1792 ÷ 1.12 = 1600.

4. Discount amount = 1800 – 1600 = ₹ 200.

5. Discount percent = (200 ÷ 1800) × 100

= 11.111...%

= `11 1/9%` 

= 11.11%

The shopkeeper must give a discount of `11 1/9%` (approximately 11.11%).