Revision: Financial Planning Algebra Maths 1 SSC (English Medium) 10th Standard Maharashtra State Board

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. 

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. 

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). 

For any local supply (supply within the same state or Union Territory), half of the output GST is deposited with the respective state or UT Government as the beneficiary. This is known as SGST/UGST.

Example: If GST = 18%, SGST/UGST = 9%

The GST levied on the supply of goods or services in case of interstate trade within India or for exports/imports is known as IGST.

The entire tax collected under IGST is paid to the account of the Central Government.

Example: If GST = 18%, IGST = 18%

Intra-state means: supply within the same state. 

Inter-state means: supply between two different states or a state and a UT.

For any intrastate supply (within the state), half of the GST collected as output GST is deposited with the Central Government as CGST.

Example: If GST = 18%, CGST = 9%

SAC (Services Accounting Code) is a numerical code used for the classification of services under GST.

A tax invoice is a bill issued by a registered GST dealer showing details of goods or services supplied, taxable value, GST charged (CGST, SGST or IGST), and total amount payable.

GSTIN is a 15-digit alphanumeric identification number allotted to every registered GST dealer for the purpose of tax administration.

• Mandatory for dealers with turnover above ₹20 lakh.

• Structure of GSTIN:

  • First 2 digits → State code (e.g. 27 = Maharashtra)

  • Next 10 digits → PAN of dealer

  • Next 1 digit → Entity number (default = 1)

  • Last 2 digits → Check code (for verification)

HSN (Harmonised System of Nomenclature) is a numerical code used for the classification of goods under GST.

Input tax credit means that while paying tax to the government on sale (output) of goods and services, you can avail the tax you have already paid on the purchase (input) of the said goods/services and pay only the balance amount as tax. 

GST is charged only on the value added, i.e. the difference between the sale price and the purchase price.

GST payable = Output GST − Input GST.

Example:

• Purchase price = ₹5,000
• GST paid on purchase (Input GST @12%) = ₹600
• Sale price = ₹6,000
• GST collected on sale (Output GST @12%) = ₹720

GST payable to the government
= Output GST − Input GST
= ₹720 − ₹600
= ₹120

Reverse Charge Mechanism (RCM) is a system in which the receiver of goods or services, instead of the supplier, is liable to pay GST to the Government.

Example:

If a registered business takes services from an unregistered supplier, then the receiver has to pay GST directly to the Government under the Reverse Charge Mechanism.

The Composition Scheme is a scheme for small taxpayers with an annual turnover of less than ₹1.5 crore, under which they pay GST at a fixed low rate and cannot collect GST from customers.

The total amount of money needed to run the company is called the capital.

The annual profit distributed among shareholders is called a dividend.

A shareholder is a person who owns one or more shares of a company. A shareholder is a part owner of the company in proportion to the number of shares held.

The shares of different companies can be bought or sold in the market through the stock exchange.

A stock exchange is a place where the buying and selling of shares takes place. It is also known as the share market or capital market.

The value of a share printed on the share certificate is called its Nominal Value, or Face Value, or Par Value.

A share is the smallest unit of the capital of a company. The capital of a company is divided into small equal parts, each of which is called a share.

Brokerage is the amount charged by a registered share broker for buying or selling shares on behalf of an investor.
Brokerage is always calculated on the Market Value (MV) of shares.

A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals (monthly/quarterly) in mutual funds.

A Mutual Fund is a professionally managed investment scheme in which money from many investors is pooled together and invested in shares, bonds, debentures or other securities by an Asset Management Company (AMC).

GST Payable = Output GST − Input GST (ITC)

Sum Invested = Number of shares × Market Value

\[\text{Rate of Return}=\frac{\mathrm{Dividend}}{\text{Market Value}}\times100\]

\[\mathrm{Brokerage}=\frac{\text{Rate of brokerage}}{100}\times\text{Market Value}\]

Buying price = Market Value (MV) + Brokerage

Selling price = Market Value (MV) − Brokerage

Total brokerage = Brokerage per share × No. of shares

The market value of one unit of a mutual fund is called Net Asset Value (NAV).

\[\mathrm{NAV}=\frac{\text{Total fund value}}{\text{Total number of units}}\]

• GST = Goods and Services Tax

• Indirect tax for the whole country

• Creates One Nation, One Market

• Not under GST:
  Customs Duty, Road Tax, Stamp Duty, Property Tax, Toll Tax, Electricity Duty, Excise on Liquor, Petroleum taxes

• GST Registration:
  ₹20 lakh (normal states)
  ₹10 lakh (special states)

• One Country One Tax:
  Same GST structure across India (CGST + SGST / IGST), but rates may differ for different goods & services.

• Destination-based tax:
  Tax goes to the state of consumption

• GST Rate Slabs:
  Goods and services in India are taxed under five fixed GST rates — 0%, 5%, 12%, 18% and 28% — based on their nature and necessity.

• Manufacturer → Wholesaler → Retailer → Consumer.

• GST is charged at each stage.

• Tax is paid only on value addition.

• Consumer bears the final tax.

Only a registered dealer can claim ITC; consumers and composition dealers cannot.

GST Returns: GST Returns are periodic details filed by a registered dealer showing sales, purchases, ITC and tax paid.

• GSTR-1 → Sales
• GSTR-3B → Summary return & final tax payment
• GSTR-4 → Composition dealer

E-Ledger: An e-ledger is an electronic record on the GST portal for a registered dealer.

• Cash Ledger → cash paid
• Credit Ledger → ITC
• Liability Register → tax due