Question 1

What is the difference between CGST, SGST, and IGST?

Accepted Answer

CGST (Central GST) and SGST (State GST) are levied on intra-state transactions (within the same state), each at half the total GST rate. For example, if GST is 18%, CGST is 9% and SGST is 9%. IGST (Integrated GST) is levied on inter-state transactions (between different states) at the full GST rate. IGST is collected by the central government and later settled between states.

Question 2

How do I calculate GST from a GST-inclusive price?

Accepted Answer

To extract GST from an inclusive price: Base Amount = Total Amount / (1 + GST Rate). For example, if the GST-inclusive price is Rs. 1,180 and GST rate is 18%, the base amount is 1180 / 1.18 = Rs. 1,000 and GST is Rs. 180. For intra-state, this splits into CGST Rs. 90 and SGST Rs. 90.

Question 3

What are the 4 GST slabs in India?

Accepted Answer

India has four main GST slabs: 5% (essential items like packaged food, transport), 12% (processed food, business class air tickets), 18% (most goods and services including electronics, restaurants), and 28% (luxury items like cars, tobacco, aerated drinks). Some items like fresh food, healthcare, and education are exempt (0% GST).

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