Good &

Service
Tax

CGST SGST IGST

 GST - Goods and Service Tax

Before GST, there were 13 different

indirect taxes in India. These 13 indirect ,
taxes are replaced by GST (Goods and
Service Tax). GST is levised by the
Central and State Government and
provide for a single and streamlined
process. GST is a common tax for goods
and service. The tax will be implemented
at every step of value creation.
 What are CGST, SGST and IGST?
CGST: The Central GST or CGST is tax
collected by the Central, when the sales are
within the states.

SGST: The State GST or SGST is tax

collected by the State, when the sales are
within the states.

IGST: The Integrated GST or IGST is tax

collected by the Central, when the sales are
outside the states.
 What are the rate of GST?

The GST is levied on multiple rates from

0% to 28%. GST Council finalized a four
GST tax structure of 5%, 12%, 18% and
28%. Presently Petroleum and Liquor for
human consumption is exempted from
GST. The GST Rates for different items
are as below:

IGST Rate = CGST Rate + SGST Rate

 What is the formula for
calculating GST?

If output GST is more than input GST,

then GST Payable = Output GST (GST
on sale) - Input GST (GST on expenses
purchase).

If input GST is more than output GST,

then GST Credit = No GST to be paid.
Q. Find the amount of the bill for the intra
state transaction of goods

MRP 12000 15000 9500 18000

Discount % 30 20 30 40

CGST % 6 9 14 1.5
Solution :

MRP D% Discount Discounte CGST SGST

d value

12000 30 3600 8400 6% = 504 504

15000 20 3000 12000 9% = 1080

1080

8500 30 2850 6650 14% = 931

931

18000 40 7200 10800 2.5% = 270

270
Q. Mr. Abdul a manufacturer, sells his
product worth Rs. 225000 within the
state. He buys goods worth Rs. 120000
within the state. If the rate of GST is @
12% on the raw material and @ 18% on
the finished product find the amount of
GST he has to pay.
Q. Mr. Abdul a manufacturer, sells his
product worth Rs. 225000 within the
state. He buys goods worth Rs. 120000
within the state. If the rate of GST is @
12% on the raw material and @ 18% on
the finished product find the amount of
GST he has to pay.
Solution :
Input GST = 12% on raw material =
12% of 120000 = 120000 x 12/100 =
14400

Output GST = 18% on finished product

= 18% of 225000 = 225000 x 18/100 =
40500

Here, output GST is more than input

GST.

Thus, GST Payable = Output GST -

Input GST = 40500 - 14400 = Rs.
26100.
Q. A shoe manufacturer purchases
goods worth Rs. 90000 from the
markets within the state. He sells his
product in the neighbourhood market
for Rs, 78000. If the common rate of
GST is @18%, find the GST
payable/GST credit for the above
transaction.
Q. A shoe manufacturer purchases
goods worth Rs. 90000 from the
markets within the state. He sells his
product in the neighbourhood market
for Rs, 78000. If the common rate of
GST is @18%, find the GST
payable/GST credit for the above
transaction.
Solution :
Input GST = 18% on raw materials =
18% of 90000 = 90000 x 18/100 =
16200

Output GST = 18% on finished

products(shoes) = 18% of 78000 =
78000 x 18/100 = 14040

Here, output GST is more than input

GST.

Thus, GST Credit = Input GST - Output

GST = 16200 - 14040 = Rs. 2160.
Q. Mrs Salim a biscuit manufacturer
buys raw goods worth Rs 140000 from
different markets within the state GST
@ 5%. He sold packet biscuits worth Rs
210500 in the packet biscuits is 12%.
Find the amount of IGST payable by
him.
Q. Mrs Salim a biscuit manufacturer
buys raw goods worth Rs 140000 from
different markets within the state GST
@ 5%. He sold packet biscuits worth Rs
210500 in the packet biscuits is 12%.
Find the amount of IGST payable by
him.
Solution :
Price of raw material = 140000
Price of final product = 210500
Since sales are occurred in within the
states, CGST = SGST = 5%

Input GST = 5% on raw materials = 5% of

140000 = 140000 x 5/100 = 7000.

Output GST = 12% on final product = 12%

of 210500 = 210500 x 12/100 = 25260

Here, output GST is more than input GST.

Thus, GST Payable = Output GST - Input

GST = 25260 - 7000 = Rs. 18260.
Q. Goods/services are sold from Agra(UP) to
Kanpur (UP) for Rs,20000 and then from Kanpur
to Bangalore(Kamataka). If the rate of GST is
18% and the profit made at Kanpur Rs,5000,
find
The net GST paid by a dealer at Kanpur
The cost of goods/ services at Bangalore
Q. Goods/services are sold from Agra(UP) to
Kanpur (UP) for Rs,20000 and then from Kanpur
to Bangalore(Kamataka). If the rate of GST is
18% and the profit made at Kanpur Rs,5000,
find
The net GST paid by a dealer at Kanpur
The cost of goods/ services at Bangalore
Solution :
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