Anita returned the mixer grinder and got the full bill back. The price on the cash memo already includes 18% GST. How much of her refund is GST?
Class 8Comparing QuantitiesComparing Quantities
A₹ 849.60
B₹ 720
C₹ 4,000
D₹ 472
Step-by-Step Solution
The bill is 118% of the price before tax: price =1184720×100=₹4000. So the GST =4720−4000=₹720. Taking 18% of ₹ 4,720 (₹ 849.60) is wrong, because the tax was charged on ₹ 4,000.
Answer: B) ₹ 720
Key idea: Discount
A discount is a reduction off the **marked price** (MP), not the cost price. The selling price (SP) is what the customer actually pays.