What is GST?

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services across India. It aims to unify the taxation system and enhance compliance.

Types of GST

• CGST (Central Goods and Services Tax): Levied by the central government on intra-state sales.
• SGST (State Goods and Services Tax): Levied by state governments on intra-state sales.
• IGST (Integrated Goods and Services Tax): Levied on inter-state sales and collected by the central government.

How to Calculate GST?

GST can be calculated using the following formula:

GST Amount = (Amount × GST Rate) / 100

Total Amount = Amount + GST Amount

Claiming GST

Businesses can claim Input Tax Credit (ITC) for GST paid on purchases related to their business. To claim ITC, ensure:

• The supplier is registered under GST.
• The goods/services are used for business purposes.
• Maintain proper documentation (e.g., invoices).

Benefits of GST

• Simplifies the tax structure.
• Reduces the overall tax burden.
• Encourages compliance and transparency.
• Boosts the economy through initiatives like 'Make in India'.