Question

The monthly expenditure (Rs.) of a family on some important items and the Goods and Services Tax (GST) rates applicable to these items is as follows:

Item	Monthly Expense (Rs)	GST Rate %
Cereals	1500	0
Eggs	250	0
Fish, Meat	250	0
Medicines	50	5
Biogas	50	5
Transport	100	5
Butter	50	12
Babool	10	12
Tomato Ketchup	40	12
Biscuits	75	18
Cakes, Pastries	25	18
Branded Garments	100	18
Vacuum Cleaner, Car	1000	28

Calculate the average tax rate as far as this family is concerned.

Answer 1

	Monthly Expenditure (w)	GST Rate % (X)	WX
Cereals	1500	0	0
Eggs	250	0	0
Fish, Meat	250	0	0
Medicines	50	5	2.5
Biogas	50	5	2.5
Transport	100	5	5
Butter	50	12	6
Babool	10	12	1.2
Tomato Ketchup	40	12	4.8
Biscuits	75	18	13.5
Cakes, Pastries	25	18	4.5
Branded Garments	100	18	18
Vacuum Cleaner, Car	1000	28	280
Total	3500		338

The average tax rate for this family: `338/3500 = 0.0966` or 9.66%