How gst will work how retailer is affected by gst?
Answers
What is GST ?
1. GST means Goods and Services Tax.
2. GST applies on few items like aerated drinks, luxury cars and tobacco products.
3. The Goods and Services Tax (GST) was finally launched and implemented on the midnight of 30 June 2017.
4. GST is a single on the supply of goods and services, from the manufacturer to the consumer.
5. It is an indirect tax for the whole nation, which will make India one unified common market.
Merits of GST
1. Now, there is only one tax , Under GST, there would be only one tax from the manufacturer to the consumer.
2. It will decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency.
3. It will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports.
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Hopes this helps you !
GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180
What are the types of GST?
Currently, the types of GST in India are CGST, SGST and IGST. This simple division helps distinguish between inter- and intra-state supplies and mitigates indirect taxes. To learn more, read about these 3 different types of GST.
Types of GST in India- CGST, SGST & IGST
How do I calculate GST?
The formula for GST calculation:
Add GST: GST Amount = (Original Cost x GST%)/100. Net Price = Original Cost + GST Amount.
Remove GST: GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}] Net Price = Original Cost – GST Amount.