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 = ₹2,000 After 10% and 5% consecutive discounts → Price becomes ₹1,710 Assume ₹1,710 is the cost price (no profit/loss for shopkeeper) 20% GST on ₹1,710 = ₹342 Final price paid by customer = ₹1,710 + ₹342 = ₹2,052 Since GST goes to the government, the shopkeeper only gets ₹1,710, which is equal to the cost price. So, customer pays neither more nor less than the cost price (excluding GST).
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