Question

A shopkeeper sells an article for ₹16800 with GST = 18%. A customer willing to buy this article, asks the shopkeeper to reduce the price of the article so that he pays only ₹18000 including GST. If the shopkeeper agrees for this, how much reduction will the shopkeeper give?

• A. ₹1645.76
• B. ₹1445.24
• C. ₹1545.76
• D. ₹1585.26

Answer 1

The correct option is C ₹1545.76

Let the reduction given by shopkeeper be ₹ x.

Reduced price of the article = ₹(16800 - x)

Clearly, the reduced price of the article + GST on it should be = ₹18000

$\Rightarrow$ ₹(16800 - x) + 18% of ₹(16800 - x) = ₹18000

On solving we get

$16800-x+3024-\frac{18x}{100}=18000$

$\Rightarrow$ $\frac{118x}{100}=₹19824-₹18000=₹1824$

$\Rightarrow x=₹1545.76$

Hence, reduction given by the shopkeeper = ₹1545.76

Alternate method :
Let the reduced price be ₹x

Reduced Price + GST on it = ₹18000

x + 18% of x = ₹18000

$\Rightarrow$ $\frac{118x}{100}=₹18000$

$\Rightarrow x=₹15254.24$

Reduction given by the Shopkeeper
= ₹16800 - ₹15254.24
= ₹1545.76