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G. S. T Goods and Service Tax: Alcoholic Drinks Electricity

GST is an indirect tax implemented in India on July 1, 2017 that replaced several indirect taxes. It is collected by the central and state governments as CGST, SGST, and IGST at rates of 0%, 5%, 12%, 18%, or 28% depending on the goods and services. CGST and SGST make up the GST for intra-state transactions, while IGST applies to inter-state transactions and imports. GST is calculated as a percentage of the selling price less any discounts. Several examples are provided to demonstrate how to calculate GST amounts under different scenarios.

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130 views6 pages

G. S. T Goods and Service Tax: Alcoholic Drinks Electricity

GST is an indirect tax implemented in India on July 1, 2017 that replaced several indirect taxes. It is collected by the central and state governments as CGST, SGST, and IGST at rates of 0%, 5%, 12%, 18%, or 28% depending on the goods and services. CGST and SGST make up the GST for intra-state transactions, while IGST applies to inter-state transactions and imports. GST is calculated as a percentage of the selling price less any discounts. Several examples are provided to demonstrate how to calculate GST amounts under different scenarios.

Uploaded by

Rabindra Dash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

G. S.

T
GOODS AND SERVICE TAX
 GST is an Indirect Tax which has replaced many Indirect
Taxes in India.
 The Goods and Service Tax Act was passed in the Parliament
on 29th March 2017. The Act came into effect on 1st July
2017.
 Goods and services are divided into five different tax slabs
for collection of tax - 0%, 5%, 12%, 18% and 28%.
 However, petroleum products, alcoholic drinks and 
electricity are not taxed under GST

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

GST Amount = ( Selling Price × GST% /100 )


Net Price = Selling Price + GST Amount

Ex. 1
MRP = Rs 12,000, Discount % = 30%, GST = 18%,
calculate amount of bill.
Ans.
Discount = 30% of 12,000
= (30/100) x 1200
= Rs 3600  
Selling price (discounted value) = 12000 – 3600
= Rs 8400
GST Amount = selling price × gst% / 100
= 8400 × 18/100
= 84×18 = ₹1512
Amount of Bill = Selling Price + GST amount
= 8400 + 1512 = ₹9912
G. S. T calculation by IGST, CGST, AND SGST

C. G. S. T – ½ tax goes to central govt.


• if GST is 18% then its
calculated by 9% of selling price.
S. G. S. T- ½ tax goes to state Govt.
• if GST is 18% it is also
calculated by 9% of selling price.
G. S. T- whole tax goes to central Govt.
• if GST is 18% then it is calculated as
whole 18% of selling price.

CGST & SGST both are calculated for transaction


with in the state or intrastate given in the question.

IGST calculated for transactions between two


different states. Or interstate given in the question.
Ex-2
For the following transaction from Delhi to Jaipur, fill in the
blanks to find the amount of bill:
MRP = Rs 50,000, Discount % = 20%, GST = 28%
Discount =
Selling price (discounted value) =
CGST =
SGST =
IGST =
Amount of Bill =
Solution:
Given,
MRP = Rs 50,000, Discount % = 20%, GST = 28%
Now,
Discount = 20% of 50,000 = (20/100) x 50,000 = Rs 10,000 
So,
Selling price (discounted value) = 50,000 – 10,000 = Rs 40,000
CGST = 0
SGST = 0
IGST = 28% of 40,000 = (28/100) x 40,000 = Rs 11,200  
the amount of bill = Selling price + IGST 
= 40,000 + 11,200 
= Rs 51,200 
Example -3
A is a dealer in Banaras (U.P.). he supplies goods/services worth
Rs. 8000 to a dealer B in Agra (U.P.). Dealer B, in turn, supplies
the same goods/services to dealer C in Patna (Bihar) at a profit of
Rs. 1200. Find the input and output taxes for the dealer C and
net tax payable by dealer B. under GST system; if the rate of GST
is 18% and C does not sell his goods/services further.
Sol:-
       
       
DETAILS IGST CGST SGST

Input for dealer B (₹ 8000)  


0
 
9% × 8000
 
9% × 8000
Banaras to Agra (U. P) = 720 = 720

Output for dealer B      


18% × 9200 0 0
( 8000 + 1200 ) = 1656
Agra (U.P) to Patna (Bihar)

Net Tax Payable      


₹216 0 0
(1656 – 1440)

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