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?

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Solution

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

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

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

$\Rightarrow x = ₹ 1545.76$

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

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

$\Rightarrow x = ₹ 15254.24$

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

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