List price of a cooler is Rs 2563. The rate of VAT is 10%.

Let the reduced price of the cooler, excluding VAT, be Rs. $x$.

VAT $=10 \%$ of Rs $x=\frac{10}{100} \times x$

$=R s . \frac{x}{10}$

Therefore, SP of the cooler will be $=$ Rs. $\left(x+\frac{x}{10}\right)=$ Rs. $\frac{11 x}{10}$

But the SP is already given as Rs. 2563 .

So,

$2563=\frac{11 x}{10}$

$11 x=25630$

$x=\frac{25630}{11}$

$=$ Rs. 2330

Hence, $d$ iscount allowed in the price of the cooler $=$ Rs. $(2563-2330)=$ Rs. 233 .