The invoice value of a toy is ₹ 4,220 and rate of GST is 5%. Statement (1): GST paid = 5% of ₹ 4,220 Statement (2): The taxable value of the toy = × ₹ 4,220 1. Both the statements are true. 2. Both the statements are false. 3. Statement 1 is true, and statement 2 is false. 4. Statement 1 is false, and statement 2 is true.

Mathematics

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Option 4 is the correct option.

Reason

Given,

Invoice value = ₹ 4,220

GST = 5%

According to statement 1, GST paid = 5% of ₹ 4,220

Invoice value includes the GST. Therefore, GST is not calculated on ₹ 4,220 directly.

So, statement 1 is false.

According to statement 2, the taxable value of the toy = $\dfrac{100}{105}$ × ₹ 4,220

Let the taxable value of the toy be $x$ .

Since, invoice value includes the GST,

Invoice value = $x$ + 5% of $x$

= $x + \dfrac{5}{100} \times x$

= $x + 0.05x$

= $1.05x$

Given, Invoice Value = ₹ 4,220, we have,

$1.05x = 4220 \\[1em] x = \dfrac{1}{1.05} \times 4220 \\[1em] x = \dfrac{100}{105} \times 4220$

∴ Taxable value of the toy = $\dfrac{100}{105} \times ₹ 4220$

∴ Statement 2 is true.

Hence, statement 1 is false, and statement 2 is true.

Answered By

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Items	Marked price	Discount	Rate of GST
Face-cream	₹ 350	12%	12%
Hair oil	₹ 720	-	5%
Telecom powder	₹ 225	18%	18%