Learn here how to create or prepare GST invoice correctly with simple example.
Goods and Service Tax (GST) is an indirect tax to be launched on 1st July 2017 throughout India. It is a tax levied on the sales and manufacturing of the goods and services. It is set to reform the current tax structure levied by the central and state governments. It is about to introduce a new regime of business compliance in India. GST is a single taxation on the supply of goods and services right from the supplier to the recipient. Learn here what is GST and how to create GST invoice in simple steps. The percentage of GST tax rates are fixed at 5%, 12%, 18% and 28%.
GST is composed of two rates, that is CGST and SGST. The collected CGST is for the Central government and SGST is for the respective State government. IGST is an inter-state sales, shared between the central and state government. "One nation, one tax" is the Slogan for GST, as it is going to set uniform tax rates across all the states of India.
Intra State Sales
Goods and products sold within the same state is referred as Intra State Sales.
GST = CGST + SGST
For instance, 18% of GST is equally shared between CGST(9%) and SGST(9%).
Inter State Sales
When the sales of Goods and Products take place between two states, then its called as Inter state Sales.
GST = IGST
For instance, if a product is levied with 18% of tax, then its nothing but 18% of IGST.