Question

    A customer purchases a general insurance policy covering

    fire and burglary. The insurer charges a premium of ₹50,000 for the annual coverage. As per prevailing GST rules, what rate of GST is applicable, and what is the total premium including tax payable by the insured?
    A 12%; Total = ₹56,000 Correct Answer Incorrect Answer
    B 5%; Total = ₹52,500 Correct Answer Incorrect Answer
    C 28%; Total = ₹64,000 Correct Answer Incorrect Answer
    D 18%; Total = ₹59,000 Correct Answer Incorrect Answer
    E 0%; Total = ₹50,000 Correct Answer Incorrect Answer

    Solution

    GST on general insurance premium is 18%, so GST = 18% of 50,000 = ₹9,000; Total payable = ₹59,000

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