Question 1

What is GST?

Accepted Answer

GST (Goods and Services Tax) is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced multiple cascading taxes like VAT, excise duty, and service tax. GST was introduced on 1st July 2017 under the 'One Nation, One Tax' regime to simplify the indirect tax structure.

Question 2

How to calculate GST from total amount?

Accepted Answer

To calculate GST from a GST-inclusive total amount, use the formula: GST Amount = Total Amount - (Total Amount × 100) / (100 + GST Rate). For example, if the total amount is ₹1,180 and GST rate is 18%, then GST = 1180 - (1180 × 100) / 118 = ₹180, and the original price is ₹1,000.

Question 3

What are the GST slab rates in India?

Accepted Answer

India has four main GST slab rates: 5% (essential items like packaged food, footwear below ₹500), 12% (processed food, mobiles, computers), 18% (most goods and services including restaurants, telecom, financial services), and 28% (luxury items like cars, cement, white goods, tobacco). Some items like fresh food, milk, and educational services are GST-exempt (0%).

Question 4

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) and are split equally — each being half of the total GST rate. IGST (Integrated GST) is levied on inter-state transactions (between different states) and equals the full GST rate. For example, on an 18% GST intra-state sale, CGST = 9% and SGST = 9%. For inter-state, IGST = 18%.

Question 5

How to add GST to an amount?

Accepted Answer

To add GST to an amount (calculate GST-inclusive price), use the formula: Total Amount = Original Amount + (Original Amount × GST Rate / 100). For example, if the original price is ₹1,000 and GST rate is 18%, then GST = ₹180 and the total price including GST = ₹1,180.

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