Question

A dealer in Jhansi buys articles worth Rs 8000. If the rate of GST is 18%, how much will the dealer pay for the articles bought?

A) Rs 8000
B) Rs 9400
C) Rs 8480
D) Rs 9000

Answer 1

The total cost the dealer will pay for the articles including an 18% GST is Rs 9440, as the GST adds Rs 1440 to the original cost of Rs 8000.

Step-by-step explanation:

The question is asking to calculate the final cost that a dealer in Jhansi must pay for articles including the Goods and Services Tax (GST).

Firstly, we need to establish the cost of the articles before tax, which is stated as Rs 8000. The rate of GST is 18%, so to find out how much GST the dealer must pay, we use the formula:

GST amount = (Original Cost × GST rate) / 100

Substituting the known values:

GST amount = (8000 × 18) / 100

After calculating the above we get:

GST amount = 1440

To find the total cost including GST, we add the GST amount to the original cost:

Total cost = Original Cost + GST amount

So, the total cost would be:

Total cost = 8000 + 1440 = 9440

Therefore, the dealer will pay Rs 9440 for the articles.