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