Question

A cycle is available for Rs. 1,712 inclusive of GST at the rate of 7%. Find its list price. If the GST is increased to 28%, how much more does the customer pay for the cycle.

Answer 1

Step 1: Given information:

Price of an article$=\mathrm{Rs}.1,712$

Rate of GST$=7\%$

Step 2: Calculate list price:

Let, the list price be y.

GST on the list price$=y\times \frac{7}{100}=\frac{7y}{100}$

Price of the article $=y+\frac{7y}{100}$

Since, Price of an article$=\mathrm{Rs}.1,712$

$$\begin{gathered} \Rightarrow y+\frac{7y}{100}=1,712 \\ \Rightarrow \frac{107}{100}y=1,712 \\ \Rightarrow y=1,712\times \frac{100}{107} \\ \Rightarrow y=\mathrm{Rs}.1,600 \end{gathered}$$

So that, list price $=\mathrm{Rs}.1,600$

Step 3: Calculating sale price:

Rate of GST$=28\%$

thus the selling price increased to :

$\mathrm{S}.\mathrm{P}.=\frac{1,600\times (100+28)}{100}=\mathrm{Rs}.2,048$

Thus the customer paid more amount of:

$$\begin{gathered} \mathrm{Extra}\mathrm{Amount}=\mathrm{S}.\mathrm{P}.\mathrm{with}28\%\mathrm{GST}-\mathrm{S}.\mathrm{P}.\mathrm{with}7\%\mathrm{GST} \\ \Rightarrow \mathrm{Extra}\mathrm{Amount}=2,048-1,712 \\ \Rightarrow \mathrm{Extra}\mathrm{Amount}=\mathrm{Rs}.336 \end{gathered}$$

Hence, the list price is Rs. 1,600 and the customer will pay Rs. 336 more.