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Question

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A. $18\% $

B. $9\% $

C. $36\% $

D. $0.9\% $

Answer

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It is given that the rate of GST on the stainless steel utensil is$18\% $.

GST is the tax paid to the government. Also this tax has various types based on the type of purchase. (Example$ = $inter-state tax)

The GST is actually paid on both, the central and the state government.

So, this tax is divided into two parts as it is being divided in two bodies.

In India, the state and the central government receive an equal amount of GST. Therefore, each of them receives half of the $18\% $ that is charged.

Total GST $ = $ central GST $ + $ state GST.

It can be rightly said that GST is paid in two equal shares. The first share is paid to the central and second to the state government.

So,

Rate of GST$ = $ rate of the central GST $ + $ rate of state GST.

Since these shares are equal,

Rate of the state GST $ = $ rate of central GST$ = $ $\dfrac{{18\% }}{2}$

Rate of state GST$ = $ $9\% $.