1(v)
The GST of an article is reduced from 12% to 5% and due to this, the price paid for the article is cut down by ₹ 14. The original price of the article is:
- (a)₹ 50
- (b)₹ 98
- (c)₹ 100
- (d)₹ 200
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Let the original price (before GST) = ₹ x
Price paid at 12% GST = x + 12% of (x)
= x + $\frac{12}{100}x$
= x + 0.12x
= 1.12x
Price paid at 5% GST = x + 5% of (x)
= x + $\frac{5}{100}x$
= x + 0.05x
= 1.05x
Given,
The price paid for the article is cut down by ₹ 14.
Difference in price paid = 1.12x - 1.05x
⇒ 14 = 1.12x - 1.05x
⇒ 14 = 0.07x
⇒ x = $\frac{14}{0.07}$
⇒ x = 200.
The original price of the article is = ₹ 200
Hence, option 4 is the correct option.