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Total GST
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GST stands for Goods and Services Tax. It is a value-added tax levied on the supply of goods and services in many countries around the world. GST is designed to replace various indirect taxes that were previously applied at different stages of the supply chain, such as excise duty, value-added tax (VAT), and service tax.
The primary objective of implementing GST is to create a unified tax structure that simplifies the taxation system, reduces tax evasion, and promotes economic growth. It is a comprehensive tax that is applied to the value added at each stage of production or distribution.
Under the GST system, businesses and individuals are required to register for GST and charge it on the supply of goods and services. They can also claim a credit for the GST they have paid on their purchases, known as input tax credit. This mechanism ensures that the tax is levied only on the value added at each stage of the supply chain, preventing the cascading effect of taxes.
GST has different rates for different categories of goods and services. In some countries, there are multiple tax rates, including a standard rate and reduced rates for essential goods and services. The specific rates and exemptions vary from country to country.
A GST calculator is a simple online tool that helps calculate the Goods and Services Tax (GST) amount for a given transaction. It simplifies the process of determining the GST component of a total amount, including both the GST-inclusive and GST-exclusive amounts.
Based on your requirement, choose the GST Inclusive or GST Exclusive option
Type the initial sum in the concerned field
From the drop-down menu, select the required GST rate
Select ‘calculate’ to view your view your overall GST amount
The calculation of the GST rates that apply to the goods & services depends on whether the transaction is interstate or intrastate.
Let us assume that a merchant in Chennai exports goods worth Rs 50000 to ra. another dealer in Andhra. The merchant should charge IGST of Rs 9000 in such an instance, & this amount shall go to the Central Government.
Inter-state Calculation-A customer buys goods from a seller in Gujarat for Rs 50000. The GST percentage of 12% includes 6% of CGST & SGST each.
As the sales were interstate only, the GST amount would be Rs 6000 that would further be collected as Rs 3000 by the Federal & State Government respectively.
The calculation of the GST rates that apply to the goods & services depends on whether the transaction is interstate or intrastate.
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