Revision: Commercial Mathematics >> Goods and Services Tax (G.S.T.) Maths (English Medium) ICSE Class 10 CISCE

These are the taxes paid by an individual or an organisation directly to the government.

These include Income Tax, Wealth Tax, Corporate Tax and Capital Gains Tax.

These are the taxes on goods and services paid by the customer, collected by an individual or an organisation and deposited with the government.

A dealer is a person who buys goods/services for resale. 

 It is the price at which an article is marked.

List price is also known as marked price (M.P.), printed price, quoted price, etc. 

In order to sell out the old stock or for some other reason(s), shopkeepers offer a certain percentage of the list price as a discount. 

This discount is always calculated on the list price. 

It is the price at which a trader sells his/her goods, with any discount applied.

The selling price is also called the sale price.

Goods mean every kind of movable thing/property, i.e. anything which can be taken (moved) from one place to another. 

Goods do not include money and securities. Securities mean: shares, stocks, bonds, debentures, etc. 

Prior to 1^st July 2017, we had a number of indirect taxes such as VAT, excise, service tax, etc. From 1st July 2017 onwards, the government of India has abolished all such indirect taxes and introduced a new (indirect) tax called Goods and Services Tax (GST). 

Services mean anything other than goods, money and securities. Services include activities relating to the use of money, e.g. banking services, insurance services, etc. 

Intra-state supply

An intra-state supply occurs when the supplier and the place of supply are in the same state or Union Territory.

• Example: A seller in Mumbai supplies goods to a buyer in Pune.

• Both are in Maharashtra, so this is an intra-state supply.

• GST is divided into CGST + SGST.

Inter-state supply

An inter-state supply occurs when the supplier and the place of supply are in different states or Union Territories.

• Example: A seller in Maharashtra supplies goods to a buyer in Gujarat.

• This is an inter-state supply.

• GST is charged as IGST.

Input Tax Credit (ITC) is the credit a registered dealer can claim for GST paid on purchases used in the course of business.

\[ \boxed{\text{GST Payable} = \text{Output GST} - \text{Input GST (ITC)}} \]

An E-way Bill is an electronic permit generated on the GST portal for transporting goods worth more than ₹50,000.

The selling price = List price - Discount = Discounted price 

When an article is sold without any discount, its selling price = its list price.

1. GST: one destination-based indirect tax, launched 1 July 2017. It replaced older taxes such as VAT and excise.
   

2. Goods: movable property, excluding money and securities.
   

3. Services: activities such as banking and insurance.
   

4. Dual GST: levied by both the Centre (CGST) and the State (SGST).

5. Slabs : \[ 0\%, \; 5\%, \; 12\%, \; 18\%, \; 28\%, \] plus special rates of \[ 3\% \] (gold) and \[ 0.25\% \] (rough stones).

6. Benefits: no tax-on-tax (cascading), more transparency, and uniform rates: "One Nation, One Tax".

7. Registration: required above \[ \text{₹}20 \text{ lakh} \] turnover ( \[ \text{₹}10 \text{ lakh} \] in special-category states).

8. Outside GST: petroleum, alcohol, stamp duty, customs duty.

• Types of Tax: GST is classified into CGST, SGST/UTGST, and IGST.
• Intra-State Supply: When supply is within the same state or UT, tax is shared equally as \[ \text{CGST} + \text{SGST/UTGST}. \]
• Inter-State Supply: When supply takes place between two states or UTs, IGST is charged instead.
• Total GST Amount Formula: \[ \text{GST} = \text{Taxable Value} \times \text{GST Rate} \]
• Intra-State Tax Breakdown Formula: \[ \text{CGST} = \frac{\text{GST amount}}{2}, \quad \text{SGST/UTGST} = \frac{\text{GST amount}}{2} \]
• Inter-State Tax Formula: \[ \text{IGST} = \text{GST amount} \]
• Net GST Payable Formula: \[ \text{Net GST payable} = \text{Output GST} - \text{Eligible ITC} \]

• GST is an indirect tax on the supply of goods and services.
• Intra-state sales attract \[ \text{CGST} + \text{SGST}. \]
• Inter-state sales attract IGST.
• GST is charged at each stage: \[ \text{manufacturer} \rightarrow \text{wholesaler} \rightarrow \text{retailer} \rightarrow \text{consumer}. \]
• Registered dealers claim Input Tax Credit for GST paid on eligible purchases.
• Net GST payable is calculated as: \[ \boxed{\text{GST Payable} = \text{Output GST} - \text{Input GST (ITC)}} \]
• The final consumer pays the total GST included in the final invoice.
• Total GST deposited by all dealers equals the GST paid by the final consumer.