Name: Carol
Who is asking: Other
Level of the question: All

Question: If I have $1700 how much of that is GST? Before the GST was changed to 6% you would multiply $1700 by .06542. Now what number do you multiply for 6% GST. No PST involved.

 

Hi Carol,

When the GST was 7% you bought an item that cost you $1700 including GST. Whoever sold you the item had a price of $x and calculated

1.07 $x = $1700

to get the $1700 which you paid. Dividing both sides by 1.07 gives

$x = $1700  1/1.07 

Thus the selling price was $x and hence the GST was 0.07 of $x. But

0.07 $x = $1700  1/1.07  0.07 = $1700 0.06542

This is the multiplier you know,  1/1.07  0.07 = 0.0642. Now that the GST is 6% the multiplier is

1/1.06  0.06 = 0.05660

Penny