Discount and GST

Discount and GST

Discount, service charge and GST

Learning Outcomes

What will learn in this chapter

Why percentage has useful applications in real life, discount, Goods and Services Tax

Discount

Very often, retailers are not able to sell defective merchandise, overstocked items or discontinued models at retail selling price.

to clear the merchandise inn stock, the items are usually sold at a lower price, called the sale price. the original selling price is also known as the marked price. The discount is difference between the marked price and the sale price:

Discount

 $discount=marked\ price-sale\ price$  
the discount is often given as a percentage of the marked price:
 $Percentage\ discount=\frac{discount}{marked\ price}\times100\%$  

Poll

Is it easy?

• very easy

• easy

• hard

Good and service tax

finding seeling price inclusive of GST

A piece of furniture cost $640 before GST. Assuming that GST is at 7%, calculate the total amount of money Devi has to pay for the peace of furniture.

Methode 1
 $GST=7\%\times$  $640
 $=\frac{7}{100}\times$  $640
 $=$  $684.80

Method 2

100% +7% = 107%
total amount of money devi has to pay for the furniture
= $107\%\times$  $640

= $\frac{107}{100}\times$  $640
=$684.80

Challenge yourself

Page 33 on New Syllabus Mathematics 8^th Edition