Question

Mr. Pankaj took Health Insurance Policy for his family and paid Rs. 900 as SGST. Find the total annual premium paid by him for this policy, rate of GST being 18%.

Mr. Pratima took Health Insurance Policy for her family and paid ₹ 900 as SGST. Find the total annual premium, including GST, paid by her for this policy. The rate of GST being 18%.

Answer 1

Let's say Policy Basic Amount without GST = Rs. P

GST = 18%

SGST = `18/2` = 9%

CGST = `18/2` = 9%

SGST = `(9/100)`P = Rs. 0.09P

0.09 P = 900

⇒ P = 10000

Policy Basic Amount = Rs. 10000

GST paid = 18%

= `(18/100)xx10000`

= Rs. 1800

Total Amount Paid = 10000 + 1800

= Rs. 11,800