Question

A ready-made garment shopkeeper gives 5% discount on the dress of Rs. 1000 and charges 5% GST on the remaining amount, then what is the purchase price of the dress for the customer?

Answer 1

Printed price of dress = Rs. 1000 

Rate of discount = 5% 

∴ Amount of discount = 5% of printed price

 = (5/100) × 1000 = Rs.50 

∴ Taxable value = Printed price – discount 

= 1000 – 50 

= Rs.950 

Rate of GST = 5% 

∴ GST = 5% of taxable value 

= (5/100)× 950 

∴ GST = Rs.47.5

 Purchase price of the dress 

= Taxable value + GST 

= 950 + 47.5 = Rs.997.50 

∴ Purchase price of the dress for the customer is Rs.997.50.