INTRO:
Goods and services tax (GST) is an indirect tax. This tax collected on the sale of goods and giving services.
TERMS:
1. Dealer
2. Intra state sales
3.Inter state sales
4. Input and output GST
5. CGST-for central
6. SGST-for stste
7. UTGST-for Union teritory.
GST RATES:
1. For essential items including food : 0%
2. Common use items : 5%
3.Standard rate : 12%
4.Maximum goods and all services : 18%
5. Luxury and sin items : 28%
WORKING RULES:
1. When a manufacturer sales a product to a dealer for Rs. x and the dealer sells it to a consumer at a profit of Rs.y then the GST (12%) will pay by the dealer to the central government.
First- find the CGST and SGST (INPUT)
Second- Find SP and then find the CGST and SGST (OUTPUT)
2.Amount of Tax paid by dealer to the central government
= CGST paid by dealer to the central government.
=OUTPUT CGST-INPUT CGST
3.Amount of SGST paid by dealer to the state government
= SGST paid by dealer to the state government.
=OUTPUT SGST-INPUT SGST
4.Amount that the consumer pays for the product
=CP of consumer + GST paid by consumer.
=CP of consumer + CGST paid by consumer+ SGST paid by consumer.
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