GST

✅What is GST?

Goods and Services Tax or GST refers to the indirect tax levied on the supply of goods and services.

GST is a comprehensive tax levied on the manufacture, sale and consumption of goods and services in the country. Different small and large organizations are required to have a GST Identification Number to get registered under GST policy. When any kind of sales transaction is made within states (Inter-state), Integrated GST is charged. And for any intra-state sales, Central GST and State GST are levied.

✅Different forms of GST collected by the government are:

👉State GST (SGST): It is collected by State Government

👉Central GST (CGST): It is collected by Central Government

👉Integrated GST (IGST): It is collected by Central Government for inter-state transactions and imports

👉Union Territory GST (UTGST): It is collected by Union Territory Government

✅GST Calculation Formula

👉With GST

- Total GST = Net Price - Net Price * (100 / (100 + GST %))

- Pre-GST Amount =Net Price - (Net Price - Net Price * (100 / (100 + GST %)))

👉Without GST

- Total GST = (Net Price * GST %) / 100

- Pre-GST Amount =Net Price + ((Net Price * GST %) / 100)