Question 1

What is GST and how many types are there?

Accepted Answer

GST (Goods and Services Tax) is an indirect tax on the supply of goods and services in India. There are three types: CGST (Central GST) and SGST (State GST) for intra-state transactions, and IGST (Integrated GST) for inter-state transactions. CGST and SGST are each half of the total GST rate.

Question 2

What is the difference between GST inclusive and exclusive?

Accepted Answer

GST exclusive means the amount does not include GST, so GST is added on top. GST inclusive means the amount already includes GST, so the base price is lower than the stated amount. For example, if an item costs Rs 1,000 exclusive of 18% GST, the total is Rs 1,180. If Rs 1,000 is inclusive of 18% GST, the base price is Rs 847.46.

Question 3

What are the current GST slab rates in India?

Accepted Answer

India has four main GST slab rates: 5% (essential items like packaged food, footwear under Rs 1,000), 12% (processed food, business class air travel), 18% (most goods and services, restaurant food, telecom), and 28% (luxury goods, automobiles, tobacco, aerated drinks). Some items like fresh food, milk, and healthcare are GST-exempt (0%).

Question 4

How do I calculate GST from a total amount?

Accepted Answer

To extract GST from a GST-inclusive amount, use the formula: Base Amount = Total Amount / (1 + GST Rate/100), and GST = Total Amount - Base Amount. For example, if the total is Rs 1,180 with 18% GST: Base = 1180 / 1.18 = Rs 1,000, and GST = Rs 180.

Question 5

What is the difference between CGST, SGST, and IGST?

Accepted Answer

CGST (Central GST) goes to the central government and SGST (State GST) goes to the state government. Both apply to intra-state transactions (within the same state). IGST (Integrated GST) equals the full GST rate and applies to inter-state transactions (between different states). The total tax is the same in both cases.

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