Question

The marked price of an article is ₹ 1,000, which is available at a discount of 20% with GST rate 12%. 

Assertion (A): The GST on the sale = 12% of discounted value

Reason (R): The GST on this transaction = (100 − 20 + 12)% of marked price

Options

• A is true, R is false.

• A is false, R is true.

• Both A and R are true and R is the correct reason for A.

• Both A and R are true and R is the incorrect reason for A.

Answer 1

A is true, R is false.