Unit 32: GST

This GST training course is the complete guide for students to teach those good and services tax regulation. This course teaches students the practical aspects of GST including registration, return, and in dept. accounting and recording of GST transactions.

Here is how you can calculate GST Tax. This GST Tax calculation formula can be used to calculate GST for offline use. You can apply the formula for making GST payment while filing your GSTR 3B return. Also, you can find an example of how the GST is calculated in actual. As you can see below the formula to calculate GST is, Cost of the product is multiplied by GST Rate and then divided by 100.

However, you can always deduct the discount from the original while before calculating GST. Thus, under the GST law, the supplier of goods or services and show discount on the basic price and then charge GST. However, this is not applicable in the case of freight charges. Thus, if the freight to be shown on the invoice then it must be included in the basic price/value of the goods or services. Similarly, if the taxpayer is sending the goods through courier mode and is charged to the recipient on the invoice, the GST is to be payable on such courier charges.

GST Calculation formula

GST Amount = (Original Cost x GST %) /100

Net Price = Original Cost + GST Amount

Example: The total cost of a product or service is Rs. 25000/-. The dealer gives a 5% additional cash discount on the basic cost to the customer. Further, the dealer charges 3% freight to the customer to deliver the material in his go down. The Current CGST rate on the above product is 9%. Assume that the above transaction is within the state i.e. intra-state sale.

Calculate Total Assessable value for GST calculation, Total GST Amount payable and net invoice amount.



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