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Best GST Calculator App GST Calculator Maharashtra

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Best GST Calculator App GST Calculator Maharashtra

In order to learn GST, one must first comprehend India's indirect tax system. Direct taxes, such as income tax, are paid by the individual who is taxed. This means that the tax liability cannot be transferred to another person.

Best GST Calculator App GST Calculator Maharashtra

On the other hand, the responsibility for Indirect Taxes might be delegated to a third party. As a result, the person responsible for paying the tax can collect it from someone else and then pay it to the government, so shifting the tax burden. This is where the GST tax falls.

👉🏽 Click Here for GST Calculator

The Current Composition of Indirect Tax, which contains so many different taxes can be classified as:

  • Central Taxes: Imposed by the Central Govt (Contains Central Sales Tax, Excise Duty etc.)
  • State Taxes: Collected by the different state govts (VAT, Service Tax, Octroi)
  • The Current form of indirect tax has one big problem the cascading effect. When you Buy anything, you pay a tax on tax itself.

If a cloth maker purchases raw materials for 100 INR. If the tax rate is 10%, the tax paid by him will be 10 INR (assuming no profit or loss is deemed). As a result, the product's ultimate cost will be (100 + 10) = 110 INR.

At a higher level, suppose the wholesaler purchases the fabric from the manufacturer for 110 INR and tags it. Adding tags increases the worth of the item, so the price will climb as well. For instance, if the tag value rises by 40 INR. He must additionally pay a 10% tax on top of that, bringing the total cost of the finished goods to (110+40) = 150 + 10% tax = 165 INR.

How to Calculate GST

  • If CGST & SGST/UTGST is to be applied, then CGST and SGST both amounts are half of the total GST amount.
  • GST = Taxable Amount x GST Rate (% In Percentage)
  • GST excluding amount = GST including amount ÷ (1+ GST rate ÷ 100).
  • For example: GST including amount is Rs. 630 and GST rate is 5%.
  • Price Excluding GST = 630 ÷ (1 + 5 ÷ 100) = 600 INR

GST Tax Rates Slabs in India

  • 0.25%: Semi polished stones fall under this slab.
  • 5%: Household requirements for example oil, sugar, spices, tea, edibles, coffee, Mithai, Coal & Lifesaving medical drugs.
  • 12%: Computers and processed foods.
  • 18%: Toothpaste, Hair Oil, Soaps, Capital Goods.
  • 28%: Luxury Items, Cars, AC, Fridge, Cigarettes, Aerated drinks, Motorcycles.

How and When to File GST Returns

A taxpayer is required to file a return with the tax administration agency in accordance with the legislation. A normal taxpayer will be needed to file three monthly returns and one annual return under GST rules. 

Businesses and organizations having revenue of up to 20 lakh Indian rupees are now free from GST registration, with a GST exemption limit of 10 lakh INR for north estates.

What is GST & Why it is Important

GST is an extensive, multi - Level, destination-targeted consumption tax on carried at every stage of value addition in the lifecycle of a product. To Learn this better, let’s talk in detail:

Extensive: GST brought a unified taxation system, along the country to ensure no more irregularity in tax rates. It will nullify all previous taxation system. Multi-Level: GST is charged at each level of supply chain, where a transaction takes place or Value is added but exclusive of initial costs.

Destination Targeted Consumption: Unlike the indirect tax, GST will be collected at the point of consumption. The taxing authority with proper jurisdiction in the place where the goods/services are finally consumed will gather the tax.

CGST and IGST are fragments of GST, Goods, and Service Tax. CGST is known as Central Goods and Service Tax and IGST is the short form of Integrated Goods and Service Tax.

👉🏽 Click Here for GST Calculator

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