Question

example for computation of GST for interstate and intrastate?

Answer 1

Answer:

Method to calculate GST using the GST calculator:

Under the new tax structure, taxpayers can learn about different GST rates applicable at different categories. These are 0%, 5%, 12%, 18% and 28%, these are necessary while calculating GST.

Different tax heads under GST:

GST can be categorised in four different heads such as

State Goods and Services Tax (SGST): State Government collects this tax

Central Goods and Services Tax (CGST): Central Government collects this tax

Union Territory Goods and Services Tax (UTGST): Union Territory Government collects this tax

Integrated Goods and Services Tax (IGST). It is collected by the Central Government for inter-state transactions and imports.

IGST is applied to interstate products where the supplier of the product is in different state and the product is supplied in a different state. In such a case, an equal rate of CGST and SGST is levied for interstate supplies.

GST Calculation Formula:

For calculating GST, following mentioned formula can be used by the taxpayer. Following formula helps to calculate net price of the product after application of GST and removing GST as well.

The formula for GST calculation:

1. Add GST:

GST Amount = (Original Cost x GST%)/100

Net Price = Original Cost + GST Amount

2. Remove GST:

GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}]

Net Price = Original Cost – GST Amount.