Q) For a trader, market price of a refrigerator is Rs. 15,680 exclusive of GST (GST is 12%). Gagan, a customer for this refrigerator asks the trader to reduce the price of the refrigerator to such an extent that its reduced price plus GST is equal to the marked price of the refrigerator. Find the required reduction.

Ans: Let’s consider the reduction in the marked price is X

The old marked price = 15680

Hence, the new marked price = old marked price – reduction = 15680 – X

By given condition, new marked price + GST on new marked price = Old marked price

∴ new marked price (1 + % GST) = Old marked price

∴ (15680 – X)(1 + 12%) = 15680

∴ (15680 – X) = 15680

∴ 112 (15680 – X) = 15680 x 100

∴ 112 x 15680 – 112 X = 15680 x 100

∴ 112 x 15680 – 15680 x 100 = 112 X

∴ (112 – 100) x 15680 = 112 X

∴ 12 x 15680 = 112 X

∴ X =  = 1680

Therefore, the reduction in marked price is Rs. 1,680

Check: If reduction is 1,680, then new marked price is 15680 – 1680 = 14000

GST charged on new marked price = 14000 x 12% = 1680

Hence, total price to be paid = 14000 + 1680 = 15680

Since it is equal to original marked price, hence our answer is correct.

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