Question

Rate of GST on brokerage is ___
A. 5%
B. 12%
C. 18%
D. 28%

Answer 1

Hint:- GST came into effect from 1 July 2017 and GST or Goods and Service tax is an indirect use in India on the supply of goods and services. Goods and Services tax are divided into five different tax slabs for collection of tax. But some of the products are not taxed under GST.

Complete step-by-step answer:
First of all, we must know that the GST slab for tax collection is only at – 0%, 5%, 12%, 18% and 24%.
But in exception of this a special rate of 0.25% will apply on rough precious and semi – precious stones and 3% on Gold.
GST also applies on all commission and brokerage income. And for that we must know the role broker for which he is applicable for the GST.
The broker who carries on the business of supply of goods and services on behalf of another person.
GST at 18% is applicable to all taxable value of supply provided by an agent, including the sale /purchase of advertising space/time.
So, the rate of GST on brokerage is 18%.
Hence C is the correct option.

Note:- GST slab is only at – 0%, 5%, 12%, 18% and 24%. But in addition with these slabs access of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and Tobacco products whereas on petroleum products, alcoholic drinks and electricity are not taxed under GST.