A year ago, the current Government of India came up with an indirect tax system GST; which replaced all the indirect taxes and combined them into one. This made it easier for people as well as the government to regularize the tax collection system. All the taxes are deducted in one go, eliminating the need to pay different state and center related tax at different locations. The one to benefit the most from this is the business sector of India, especially those involved in import and export. Earlier, they had to pay tax at different tax collection points whenever they entered a new state or city. However, now they can pay the applicable IGST charges which include (CGST+SGST) and ensure a smooth supply of goods.
What is IGST?
Before we talk about IGST, let’s understand GST a little more. So, what is GST? GST is an Indirect Tax system which replaced the existing tax system in India. The Goods and Service Tax Act came into effect on 1st July 2017 and is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
Moving on to IGST, IGST is a tax levied on all Inter-State supplies of goods and/or services and will be governed by the IGST Act.
How can you calculate GST?
The best way to calculate GST is by using the GST calculator. Though the tax system was to make the tax calculation easier, the reality has become exactly the opposite. The situation is expected to remain the same as long as people don’t get a hang of it. Hence, find the applicable GST charges based on what is the product or services you are offering or purchasing, and use the GST calculator to find out the applicable GST charges.
Also Read: What is the GST, and How is it Calculated?
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.