Question

The GST of an article is reduced from 12% to 5% and due to this, the price paid for the article is cut down by ₹ 14. The original price of the article is ______.

Options

• ₹ 50

• ₹ 98

• ₹ 100

• ₹ 200

Answer 1

The GST of an article is reduced from 12% to 5% and due to this, the price paid for the article is cut down by ₹ 14. The original price of the article is ₹ 200.

Explanation:

Let the original base price (excluding GST) of the article be x.

When the GST is 12%, the total price paid is:

Initial Price = x + 0.12x = 1.12x

When the GST is reduced to 5%, the new total price paid is:

New Price = x + 0.05x = 1.05x

The price paid is reduced by ₹ 14 due to the decrease in GST:

∴ 1.12x − 1.05x = 14

∴ 0.07x = 14

x = `14/0.07`

x = 200

The original price of the article is ₹ 200.