Question
A shopkeeper gives two consecutive discount of 10% and
5% respectively on his items. He then adds 20% GST on his items. If an item has marked price Rs. 2,000/-, how much more or less than the cost price the item a customer has to pay?Solution
ATQ,
Marked Price = โน2,000 After 10% and 5% consecutive discounts โ Price becomes โน1,710 Assume โน1,710 is the cost price (no profit/loss for shopkeeper) 20% GST on โน1,710 = โน342 Final price paid by customer = โน1,710 + โน342 = โน2,052 Since GST goes to the government, the shopkeeper only gets โน1,710, which is equal to the cost price. So, customer pays neither more nor less than the cost price (excluding GST).
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