Saleem bought a car for Rs. 875,000 and paid 17% GST. How much tax did he pay

Calculating the Goods and Services Tax (GST) involves a straightforward percentage calculation. The foundational concept is to find a percentage of a given amount. Saleem bought a car for Rs. 875,000, and the GST rate is 17%. To find the amount of tax paid, you multiply the original price by the GST rate.

• Tax paid = 875,000 * 17% = 875,000 * (17/100) = 8750 * 17 = Rs. 148,750 (A).
• Options 138838 (B), 144321 (C), and 130832 (D) are incorrect. These values would result from miscalculations of the percentage or applying the percentage to an incorrect base amount, such as a discounted price or a misinterpretation of the tax calculation method.