For the following transaction with Delhi, find the amount of GST paid: MRP= Rs.15000; Discount%=30%; GST= 5%.

Category: Miscellaneous Indian Gk

Hint: Calculate the price after discount and then apply the GST rate.

Correct Answer: C) Rs.525

Exam Relevance: UPSC, SSC, Bank PO, CAT

Difficulty: Moderate

Explanations:

To understand the calculation of GST on a discounted price, we need to follow a step-by-step process. The given problem involves a product with an MRP of Rs.15,000, a discount of 30%, and a GST rate of 5%. The goal is to find the amount of GST paid after the discount is applied.

First, we need to calculate the price of the product after the discount is applied. The discount is 30% of the MRP. To find the discounted price, we use the formula:

Discounted Price = MRP - (Discount % * MRP)

Substituting the given values:

Discounted Price = Rs.15,000 - (30% * Rs.15,000)

Discounted Price = Rs.15,000 - (0.30 * Rs.15,000)

Discounted Price = Rs.15,000 - Rs.4,500

Discounted Price = Rs.10,500

Now that we have the discounted price, we can calculate the GST. The GST is 5% of the discounted price. To find the GST amount, we use the formula:

Amount of GST = GST Rate * Discounted Price

Substituting the values:

Amount of GST = 5% * Rs.10,500

Amount of GST = 0.05 * Rs.10,500

Amount of GST = Rs.525

Therefore, the amount of GST paid is Rs.525. This calculation demonstrates the importance of applying the discount before calculating the GST, as the GST is based on the discounted price, not the original MRP.

It is crucial to understand the sequence of operations: first, apply the discount to the MRP to get the discounted price, and then apply the GST rate to the discounted price. This ensures that the GST is calculated correctly and reflects the actual cost to the consumer after the discount.

Option Analysis:

Option A: This option is incorrect. The amount of Rs.75 is too low for the given MRP and discount percentage. The GST is calculated on the discounted price, which is higher than what would result in Rs.75 of GST.
Option B: This option is incorrect. The amount of Rs.750 is too high for the given MRP and discount percentage. The GST is calculated on the discounted price, which is lower than what would result in Rs.750 of GST.
Option C: This option is correct. The GST is calculated on the discounted price, which is Rs.10,500 (after a 30% discount on Rs.15,000). Applying a 5% GST rate to Rs.10,500 results in Rs.525.
Option D: This option is incorrect. The amount of Rs.500 is close but not accurate. The correct calculation involves applying the 5% GST rate to the discounted price of Rs.10,500, which results in Rs.525, not Rs.500.

Mnemonic: Discount first, then GST

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