GST is Comprehensive, Destination-based tax levied on the supply of goods and Service in India. It has replaced a variety of indirect taxes like VAT, Service Tax, Excise Duty, and other, simplifying the tax structure.
1. Types of GST in India :
a. CGST (Central GST) - Collected by the central government on intra-state Sales.
b. SGST (State GST) - Collected by the state government on intra-state Sales.
c. IGST (Integrated GST) - Collected by the central government on inter-state Sales.
d. UTGST (Union Territory GST) - Similar to SGST, but for Union territories like Delhi, Chandigarh, etc.
2. GST Calculation Formula:
For Intra-State Sales (CGST + SGST)
Total GST = Basic Price * (GST Rate) /100
Total Price = Base Price + Total GST
For Inter-State Sales (IGST):
IGST = Base Price * (IGST Rate) / 100
Total Price = Base Price + IGST
3. Example Calculations :
Scenario 1 (Intra-State Sale)
a. Basic Price: Rs. 1000
b. GST Rate: 18% (9% CGST + 9% SGST)
Calculations:
a. CGST = 1000 * (9/100) = Rs. 90
b. SGST = 1000 *(9/100) = Rs. 90
c. Total GST = 90 +90 = Rs. 180
d. Total Price = 1000 +180 = Rs.1180
Scenario 2 (Inter-State Sale)
a. Base Price: Rs. 100
b. GST Rate (IGS): 18%
Calculations:
a. IGST = 1000 * (18/100)
B. Total Price = 1000 + 180 = Rs. 1180
4. Reverse GST Calculation (Extract GST from Total Price)
To extract the GST amount from a total price:
GST Amount = Total Price * GST Rate / 200 + GST Rate
Base Price = Total Price - GST Amount
Example:
a. Total Price: Rs. 1180
b. GST Rate: 18%
GST Amount = 1180*18/100+18
= 1180*18/118 =180
Base Price = 1180 - 180 = 1000
5. GST Slab in India (2025)
a. 0% - Essential Items like fresh vegetables, grains
b. 5% - Packaged food items, medicines.
c. 12% - Processed Foods, Computers
d. 18% - Most services, electronic.
e. 28% - Luxury item, cars.
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