Question

A ready - made garment shopkeeper gives 5% discount on a dress of Rupee 2000 and charges 5% GST on the remaining amount. What is the purchase price of the dress for the customer ?

Answer 1

Correct Answer - The purchase price of the dress for the customer is Rupees 1995
Discount 5% of Rupees 2000.
`:.` discount `= ( 5)/( 100) xx 2000`
`= Rupees 100`
Taxable value `= Rupees ( 200- 100)`
`= Rupees 1900`
Rate of GST `= 5%`
`:. GST = ( 5)/( 100 ) xx 1900`
`= Rupees 95`
The purchase price for the customer
= taxable value `+` GST
`= Rupees ( 1900 + 95)`
`= Rupees 1995`