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Sales tax (GST) is calculated on which amount when an item is purchased?

Class 8Discount and TaxComparing Quantities
  • AThe selling price (price after discount)
  • BThe marked price always
  • CThe cost price of the shop
  • DThe discount amount

Step-by-Step Solution

Tax is charged on the actual price the customer pays, i.e. the selling price after any discount is deducted from the marked price.
Answer: A) The selling price (price after discount)

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