Question

.The price of an article is Rs. 8,250 which include GST at 10%. Find how much more or less does a customer pay for the article, if the GST on the article is decreased to 6%.

Answer 1

Step 1:Given information:

Price of an article$=\mathrm{Rs}.8,250$

Rate of GST$=10\%$

New rate of GST$=6\%$

Step 2: Calculating list price:

Let the list price be $\mathrm{Rs}.y$.

Then,

$\begin{array}{rcl}y+\left(10\%\mathrm{of}y\right)& =& 8,250\\ y+\left(\frac{10}{100}\times y\right)& =& 8,250\\ & \Rightarrow & y+\frac{y}{10}=8,250\\ & \Rightarrow & \frac{11}{10}y=8,250\\ & \Rightarrow & y=8,250\times \frac{10}{11}\\ \therefore y& =& \mathrm{Rs}.7,500\end{array}$

So, the list price is $\mathrm{Rs}.7,500$.

Step 3: Calculate the amount paid by the customer.

Calculate the selling price.

$\begin{array}{rcl}\mathrm{Selling}\mathrm{price}& =& \mathrm{List}\mathrm{price}+\left(6\%\mathrm{of}\mathrm{List}\mathrm{price}\right)\\ \mathrm{Selling}\mathrm{price}& =& 7,500+\left(\frac{6}{100}\times 75,00\right)\\ \therefore \mathrm{Selling}\mathrm{price}& =& \mathrm{Rs}.7,950\end{array}$

Calculate the lesser amount paid by the customer.

$\begin{array}{rcl}\mathrm{Amount}& =& 8,250-7,950\\ \therefore \mathrm{Amount}& =& \mathrm{Rs}.300\end{array}$

Hence, the customer will pay Rs. 300 less.