Question

explain the procedure to calculate GST on commodities

Answer 1

GST is a new taxation structure which is almost ready to imply all over the nation but not only a professional but as well as businessmen or small traders are also confused regarding the calculation of GST tax. There are lots of issues that are related to GST so before the discussion related to tax calculation on GST, We must understand the term and how the GST calculator works in the calculation of Tax.

Central Goods and Service Tax (CGST):In the case of intra-states transaction, a portion of the tax rate or tax amount will go to the central government directly.

States Goods and Service Tax (SGST): In the case of intra-state transaction, a portion of the tax rate and tax amount will go to the state government directly.

Integrated Goods and Services Tax (IGST): In the case of interstate transaction, the tax amount will go to Central government and after that, the appropriate tax amount will be transferred by Central Government to State government.

Now, Let’s See How to Calculate Tax in the Preview of GST:

In Case of Intrastate Transaction:



Taxable Sales Value 1000/-

Tax Rate@ 5% 50/-

Total Sales 1050/-

Bifurcation of Tax Amount is:

SGST 25/-

CGST 25/-

In the Case of Interstate Transaction:



Taxable Sales Value 1000/-

Tax Rate@5% 50/-

Total Sales 1050/-

Bifurcation of Tax amount is:

IGST 50/-

Now a new question is generated that how to make set-off after the payment of the tax?

The news is spread all over in GST India that it will decrease the tax liability and also inflation will be decreased once the GST becomes applicable. But the question is, how this will be possible? So here is the answer to this question:

Following taxes will be set-off with the same or with the different tax input credits also:

CGSTCGST and IGSTSGSTSGST and IGSTIGSTIGST , CGST and SGST