Question

Mr. Pankaj took Health Insurance Policy for his family and paid Rs $900$ as GST. Find the total annual premium paid by him for this policy, the rate of GST being $18\%$

Answer 1

Assume that the total annual premium is Rs $x$.

Understand that here SGST is equal to CGST.

Therefore, the total annual premium paid by him for the policy:

$$\begin{gathered} 18\%\mathrm{of}\mathrm{x}=\mathrm{SGST}+\mathrm{CGST} \\ \begin{array}{l}\text{\hspace{0.17em}⇒\hspace{0.17em}\hspace{0.17em}\hspace{0.17em}\hspace{0.17em}\hspace{0.17em}}\frac{18}{100}\times x=900+900\\ \Rightarrow \frac{18}{100}\times x=1800\\ \Rightarrow x=\frac{1800\times 100}{18}\\ \Rightarrow x=100\times 100\\ \Rightarrow x=10000\end{array} \end{gathered}$$

Hence, the total annual premium paid by him for the policy is Rs $10,000$ .