Goods and Service Tax is an Indirect Tax, It has been replaced with various taxes. Which was introduced in India on 1st July 2017 and it was applicable throughout India.
1.Excise duty
2.Additional duties of Customs
3.Special additional duties of Customs
4.Service Tax
1.State VAT
2.Central Sales Tax
3.Entertainment Tax
4.Tax on Lotteries
5.Octroi
6.Luxury Tax
1.SGST
2.CGST
3.IGST
The SGST & CGST will be applicable incase of intra-state (Within State) supply goods or services.
The IGST will be applicable in case of inter-state (from one State to another state) supply of goods or services.
Balu Traders in Bangalore sold goods to A traders in Bangalore worth of Rs.20,000. The GST rate will be 18% ( SGST 9% & CGST 9%), in this case Balu Traders collects Rs.3,600 and Rs.1800/- will go to Central Government (CGST) and 1800/- will go to State Government.
Purchase A/c Dr 20,000
SGST@9% Dr 1,800
CGST@9% Dr 1,800
To Vendor Account 23,600
Balu Traders in Bangalore sold goods to B traders in Maharashtra worth of Rs.20,000. The GST rate will be 18% in this case Balu Traders collects Rs.3,600 and this will go to the Central Government (IGST).
Purchase A/c Dr 20,000
IGST@9% Dr 3,600
To Vendor Account 23,600
You have to adjust GST Input tax value against GST Output tax while filing of GST Return.
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