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Question

There was a famous barber shop in Lucknow. He used to charge ₹400 per haircut and ₹200 per shave. On an average he used to get 20 customers per day for haircut and 30 per day for shave. The GST rate for haircut was 18% and for shave was 12%. What was the total GST on an average which he used to collect in a day to pay to the Government?

A
₹1940
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B
₹2280
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C
₹2160
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D
₹2440
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Solution

The correct option is C ₹2160
Cost of a haircut = ₹400

Average number of haircuts in a day = 20

Total charge of haircuts = 400×20 = ₹8000

GST on Haircut = 18%

Total GST collected for haircut

= 18100×8000 = ₹1440

Cost of a shave = ₹200

Average number of shaves in a day = 30

Total charge of shaves = 200×30 = ₹6000

GST on Shave = 12%

Total GST collected for shave

= 12100×6000 = ₹720

Total GST collected by Barber per day on an average = ₹1440 + ₹720 = ₹2160.

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