What is GST and How to calculate Gst

Discuss about GST

Goods and Service Tax

Goods and Services Tax but before that we need to what is the tax X plus the money which is paid to the government it is imposed on your income business profit cost of goods and services and the transactions so that the government can use this money in public interest and to pay of the National ducks they are actually two type of Texas one is direct X and other is indirect the Direct X is which liability cannot be shifted to someone else like corporate tax income tax wealth tax etc that net X is the text whose liability can be shifted to someone else it is central exercise takes sales takes services likes etc here the point of interest rates indirect taxes because GST will replace all indirect taxes which includes exercise duty service takes additional duty of custom Brad sale strikes central since tax entertainment X luxury tax etc so the question is how gh3 is different from the current taxation system in India I'll explain this with a simple example consider the simplified tax rate of 10% of each level there are generally four levels manufacturer distributor wholesaler and retailer manufacturing buys a raw material let's say of rupees 50 and manufacture the product which acts 50 rupees value to it so the product becomes of under rupees and for sale in this project he needs to pay 10% tax Wretch's 10 rupees so the cost of product for distributor is handing in tenebris the distributor add value of rupees 20 which is nothing but is profit so the price will become 130 distributor also sells it by adding 10% tax of rupees 13 so the product is of 140 group is no wholesaler follows the same pattern and the price will become 143 plus 20 that is 163 and 10% tax which is offer piece 16.3 and sells it for 179 point 3 rupees to the retailer then the retailer adds 20 repeats profit and the price will become one ninety nine point three the consumer buys this product from retailer by paying 10% tax on one ninety nine point three that is nineteen point nine three rupees so the final consumer price is two hundred nineteen point two three and this is how the current accession system works in urdu now we take the same example in GST system raw material of 50 rupees and the manufacturing value of rupees fifty make the product of hundred rupees but this time the manufacturer has to pay taxes on the value added by him which is rupees fifty so he pays ten percent of 50 which is five as takes from his profit but the selling price will not

increase and the cost of product for disputed is 100 rupees only then the distributor ask 20 rupees profit and the project becomes 100 plus 20 adjust 120 rupees he pays the tax of rupees two on his profit of container piece the wholesaler buys the product for 120 rupees and follow the same pattern adding 20 rupees this profit and price will become 140 and pays the tax of rupees 2 on his profit of 20 rupees retailers buys the product for 140 rupees add profit of 20 rupees pays the taxes of 2 rupees on his profit of 20 rupees and raise the final consumer price to one sixty rupees so if the prices are compared the product is fifty nine point two three rupees cheaper in GST system than the current system

let's take GST entities GST is a combination of C gh T and s GS t RI GST see Geocities central GST which is paid to central government SGO still destroyed GST which is paid to the state government and i GST is the integral GST which comes in the situation when goods and services moves interstate for example product a is manufactured in multiple days and sold in width of days so i GH 3 is distributed between both the streets in this case s GST will not be collected will also have five categories in GST in India zero percentcategory which will apply on food grains and etc five percent category which will apply mostly and widely used items twelve and eighteen percent category which will apply in the items which are normally used twenty-eight percent category which will apply unless Jesus items after applying GST the cost of items will increase or decrease so here are the some items whose cost will increase packaged food jewellery readymade garments mobile servicescredit card services etc and there are some items whose cost will decreaseafter applying GST home restaurant a/c washing machinemicrowave oven small cars and less taxes on industries there are some items which are exempted from the GST alcohol for human consumption petroleum product like crude petrol high speed diesel natural gases and aviation turbine fuel there are some taxes also which are exempted stamp duty property.