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Mathematics

A dealer buys an article for ₹ 1,500. He sells it to a customer at 10% profit. The rate of GST is 18%.

Assertion (A) : The price which the customer pays for the article is ₹ 1,650 (excluding GST).

Reason (R) : GST is charged on the cost price of the article.

  1. Assertion (A) is true, but Reason (R) is false.

  2. Assertion (A) is false, but Reason (R) is true.

  3. Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct reason for Assertion (A).

  4. Both Assertion (A) and Reason (R) are correct, and Reason (R) is incorrect reason for Assertion (A).

GST

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Answer

Given,

Cost price for dealer = ₹ 1,500

Profit % of dealer on cost price = 10%

∴ Selling price of the article by dealer (excluding tax) = Cost Price + Profit

= 1,500 + 10% of 1,500

= 1,500 + 10100\dfrac{10}{100} x 1500

= 1,500 + 150

= ₹ 1,650

GST% = 18%

So, assertion (A) is true.

GST is charged on the selling price.

So, reason (R) is false.

Thus, Assertion (A) is true, and Reason (R) is false.

Hence, option 1 is the correct option.

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