An Article Was Purchased For $₹1239$ Including GST Of $18\%$. Find The Price Of The Article Before GST Was Added.

Feb 28, 2025 by ADMIN 114 views

$**An article was purchased for $₹1239$ including GST of $18\%$. Find the price of the article before GST was added.**$

Understanding the Problem

When a product is sold, the seller may charge a certain percentage of the product's price as Goods and Services Tax (GST). In this problem, we are given the total price of the article, which includes GST, and we need to find the original price of the article before GST was added.

Calculating the Original Price

To find the original price of the article, we can use the formula:

Original Price = Total Price / (1 + GST Percentage)

In this case, the total price is $₹1239$ , and the GST percentage is $18\%$ . We can convert the GST percentage to a decimal by dividing it by $100$ :

GST Percentage = $18\%$ = $18/100$ = $0.18$

Now, we can plug in the values into the formula:

Original Price = $1239 / (1 + 0.18)$

Simplifying the Expression

To simplify the expression, we can first calculate the value inside the parentheses:

$1 + 0.18$ = $1.18$

Now, we can rewrite the expression as:

Original Price = $1239 / 1.18$

Calculating the Original Price

To calculate the original price, we can divide $1239$ by $1.18$ :

Original Price = $1239 / 1.18$ = $1050$

Conclusion

Therefore, the original price of the article before GST was added is $₹1050$ .

Example Use Case

This problem can be applied to real-life scenarios where a product is sold with GST. For instance, if a customer buys a product for $₹1239$ , and the GST percentage is $18\%$ , the customer can calculate the original price of the product by using the formula:

Original Price = Total Price / (1 + GST Percentage)

In this case, the original price of the product would be $₹1050$ .

Step-by-Step Solution

Here's a step-by-step solution to the problem:

Convert the GST percentage to a decimal by dividing it by $100$ .
Plug in the values into the formula: Original Price = Total Price / (1 + GST Percentage)
Simplify the expression by calculating the value inside the parentheses.
Rewrite the expression with the simplified value.
Calculate the original price by dividing the total price by the simplified value.

Mathematical Operations

This problem involves the following mathematical operations:

Division: To calculate the original price, we need to divide the total price by the value inside the parentheses.
Addition: To simplify the expression, we need to add $1$ and the GST percentage.
Multiplication: To convert the GST percentage to a decimal, we need to multiply it by $100$ .

Real-World Applications

This problem has real-world applications in various fields, such as:

Business: When a company sells a product with GST, it needs to calculate the original price of the product to determine the profit margin.
Finance: When a customer buys a product with GST, they need to calculate the original price of the product to determine the total cost.
Economics: When a government imposes GST on a product, it needs to calculate the original price of the product to determine the tax revenue.

Conclusion

In conclusion, the original price of the article before GST was added is $₹1050$ . This problem can be applied to real-life scenarios where a product is sold with GST, and it involves mathematical operations such as division, addition, and multiplication.

Q1: What is GST, and how does it affect the original price of a product?

A1: GST, or Goods and Services Tax, is a type of consumption tax that is levied on the sale of goods and services. When a product is sold with GST, the seller charges a certain percentage of the product's price as GST. This increases the total price of the product, and the original price needs to be calculated to determine the profit margin or the total cost.

Q2: How do I calculate the original price of a product with GST?

A2: To calculate the original price of a product with GST, you can use the formula:

Original Price = Total Price / (1 + GST Percentage)

Where the GST percentage is the percentage of the product's price that is charged as GST.

Q3: What is the GST percentage, and how do I calculate it?

A3: The GST percentage is the percentage of the product's price that is charged as GST. It is usually expressed as a decimal value, such as 0.18 for an 18% GST. To calculate the GST percentage, you can divide the GST rate by 100.

Q4: Can I use a calculator to calculate the original price of a product with GST?

A4: Yes, you can use a calculator to calculate the original price of a product with GST. Simply enter the total price and the GST percentage into the calculator, and it will give you the original price.

Q5: What if I don't know the GST percentage?

A5: If you don't know the GST percentage, you can try to find it on the product's packaging or on the seller's website. Alternatively, you can contact the seller or the tax authority to find out the GST percentage.

Q6: Can I use this formula to calculate the original price of a product with other types of taxes?

A6: Yes, you can use this formula to calculate the original price of a product with other types of taxes, such as sales tax or value-added tax (VAT). However, you will need to use the correct tax rate and formula for the specific type of tax.

Q7: What if the GST percentage is not a whole number?

A7: If the GST percentage is not a whole number, you can still use the formula to calculate the original price. Simply enter the GST percentage as a decimal value, such as 0.18 for an 18% GST.

Q8: Can I use this formula to calculate the original price of a product with a discount?

A8: No, you cannot use this formula to calculate the original price of a product with a discount. The formula is designed to calculate the original price of a product with GST, not with a discount.

Q9: What if I make a mistake when calculating the original price?

A9: If you make a mistake when calculating the original price, you can try to recheck your calculations or use a calculator to double-check your answer.

Q10: Can I use this formula to calculate the original price of a product with multiple taxes?

A10: Yes, you can use this formula to calculate the original price of a product with multiple taxes. Simply add up the tax rates and use the formula to calculate the original price.

Conclusion

In conclusion, calculating the original price of a product with GST is a simple process that involves using a formula and knowing the GST percentage. By following the steps outlined in this article, you can easily calculate the original price of a product with GST and make informed purchasing decisions.