Goods and Service Tax (GST)
It is a single indirect tax on the supply of goods and services. It was introduced in July 2017 by abolishing a variety of taxes such as sales tax and excise prevailed in India.
Under GST, tax is imposed on the basis of value addition at each stage of the movement of goods and services. Different slabs of tax rates such as 3%, 5%, 12%, 18% and 28% are imposed on almost all the goods and services. This slab is same throughout the country. In prescribed slabs 50% goes to central government and 50% goes to state government.
Example: Rahul went to a supermarket to buy household items. The shop keeper gave the bill which appears like this. Bill amount was ₹3500. It contains 18% GST. Find the bill amount before GST was added and Also find CGST and SGST share amount in GST?
| Name of Item | Quantity | Rate Per | Amount (₹) |
|---|---|---|---|
| Rice | 25 kg | 60 | 1500 |
| Cooking Oil | 5 L | 400 | 2000 |
| TOTAL | 3500 |
Solution:
Bill amount including GST = ₹
Value of GST in the bill amount = 18 % = 3500 ×
Total Bill amount before GST =
The percentage of CGST in GST = 50 %
The percentage of SGST in GST = 50 %
The value of CGST in GST amount = 630 ×
The value of SGST in GST amount = 630 ×