Question & Answer
QUESTION

Rate of GST on brokerage is:
${\text{A}}{\text{. 5% }}$
${\text{B}}{\text{. 12% }}$
${\text{C}}{\text{. 18% }}$
${\text{D}}{\text{. 28% }}$

ANSWER Verified Verified
Hint: GST is the Goods and Services Tax. It is an indirect tax used in India on the supply of goods and services. Brokerage is a service and comes under the provision of GST.

Complete step-by-step answer:
It has been asked in the question what is the rate of GST on brokerage.
First, we will see what do we mean by the term GST- GST is an indirect tax. It is the Goods and Services tax (GST) which is a value- added tax levied on most goods and services sold for domestic consumption.
The GST is paid by the consumers, but it is remitted to the government by the businesses selling the goods and services.
Now, what is meant by Brokerage- Brokerage is a service and comes under the provision of GST.
The rate of GST for Brokerage $ = 18% $,
So, the answer to the given question is option ${\text{C}}{\text{. 18% }}$.

Note: Whenever such types of questions appear, first explain the terms used in the question. As mentioned in the solution the meaning of the term GST and Brokerage. Then write the correct option among the given options.