Question

A courier service agent charged ₹590 to courier a parcel from Nashik to Nagpur. In the tax invoice, the taxable value is ₹500 on which CGST = ₹45 and SGST = ₹45. Find the rate of GST charged for this service.

Hint:

For GST-related problems: \[ \text{Rate of GST} = \frac{\text{CGST + SGST}}{\text{Taxable Value}} \times 100 \] Both CGST and SGST are always equal.

Answer 1

Step 1: Write the given information. 
Taxable value \( = ₹500 \) 
CGST \( = ₹45 \) 
SGST \( = ₹45 \) 
Step 2: Find total GST amount. 
\[ \text{Total GST} = \text{CGST} + \text{SGST} = 45 + 45 = ₹90 \] Step 3: Calculate the GST rate. 
\[ \text{Rate of GST} = \frac{\text{Total GST}}{\text{Taxable Value}} \times 100 \] \[ \text{Rate of GST} = \frac{90}{500} \times 100 = 18% \] Step 4: Verify. 
Total amount = Taxable value + GST = 500 + 90 = ₹590, which matches the question. 
Step 5: Conclusion. 
Therefore, the rate of GST charged for this service is \(18%\).