The price includes VAT.
Thus, 8% VAT means that if the price without VAT is Rs 100, then price including VAT will be Rs 108.
When price including VAT is Rs 108, original price = Rs 100
When price including VAT is Rs 5400, Original price = Rs (100/108 x 5400) = Rs 5000
Thus, the price of the hair-dryer before the addition of VAT was Rs 5,000.3
