Explanation: To understand the calculation of the bill amount in the context of Indian taxation, we need to follow a step-by-step process involving the application of a discount and then the addition of GST.
1. **Maximum Retail Price (MRP):** The MRP is the highest price at which a product can be sold. In this case, the MRP is Rs. 12000.
2. **Discount Calculation:** A discount is a reduction in the price of a product. Here, a 30% discount is applied to the MRP. The formula to calculate the discounted price is:
\[
\text{Discounted Price} = \text{MRP} \times \left(1 - \frac{\text{Discount Percentage}}{100}\right)
\]
Substituting the given values:
\[
\text{Discounted Price} = 12000 \times \left(1 - \frac{30}{100}\right) = 12000 \times 0.70 = 8400
\]
So, the discounted price is Rs. 8400.
3. **GST Calculation:** GST is a value-added tax levied on most goods and services sold for domestic consumption in India. The formula to calculate the final bill amount after adding GST is:
\[
\text{Final Bill Amount} = \text{Discounted Price} \times \left(1 + \frac{\text{GST Percentage}}{100}\right)
\]
Substituting the given values:
\[
\text{Final Bill Amount} = 8400 \times \left(1 + \frac{18}{100}\right) = 8400 \times 1.18 = 9912
\]
Therefore, the final bill amount is Rs. 9912.
It is important to note the order of operations: the discount is applied first to the MRP, and then GST is added to the discounted price. This ensures that the GST is calculated on the reduced price, not the original MRP. This method is consistent with Indian taxation practices and ensures that the final bill amount accurately reflects the discount and the applicable tax.
Understanding these steps and the correct order of operations is crucial for accurately calculating the bill amount in scenarios involving discounts and GST. This concept is frequently tested in various competitive examinations, including UPSC, SSC, and banking exams, where candidates are expected to apply these principles to solve similar problems.