Question

An iron was sold for Rs. 990 including GST of 10%. Find its price before GST was added.​

Answer 1

Correct Question : An iron was sold for Rs. 990 including GST of 10%. Find its price before GST was added.

Answer :-

• Rupees 900

Explanation : -

☯️ Given :

• SP = Rupees 990
• GST % = 10

☯️ To find :

• Original price

☯️ Solution :

Let the original price ( selling price before tax) be Rupees 100.

Then, the selling price after the inclusion of tax

= 100 + 10% of 100

= 100 + 10/100 × 100

= Rupees 110

When the selling price including tax is rupees 110, the original price is rupees 100.

When the selling price including tax is rupees 1, the original price is rupees 100/110.

When the selling price including tax is rupees 990, the original price is,

Rupees 100/110 × 990 = Rupees 900

Therefore, the original price is rupees 900.

Extra Information :

Goods and Services Tax is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.

The types of GST in India are CGST, SGST and IGST. This simple division helps distinguish between inter- and intra-state supplies and mitigates indirect taxes.