Question 1

What is GST?

Accepted Answer

GST (Goods and Services Tax) is a unified indirect tax levied on the supply of goods and services in India. It replaced multiple cascading taxes and is collected at every stage of the supply chain, with credit available for tax already paid.

Question 2

What are the GST slabs in India?

Accepted Answer

India has four main GST slabs: 5% (essential goods and services), 12% (standard goods), 18% (most common slab for services and goods), and 28% (luxury goods, sin goods). Some items like basic food are exempt (0%).

Question 3

What is the difference between CGST and SGST?

Accepted Answer

For intra-state (within the same state) transactions, GST is split equally into CGST (Central GST) and SGST (State GST). For inter-state transactions, IGST (Integrated GST) is charged instead, at the combined rate.

Question 4

How do I remove GST from a price that already includes GST?

Accepted Answer

To remove GST from an inclusive price: Original Price = Total Price × 100 / (100 + GST Rate). For example, ₹118 at 18% GST → Original = 118 × 100/118 = ₹100. The GST component = ₹18.

Question 5

Who needs to register for GST?

Accepted Answer

Businesses with annual turnover above ₹40 lakh (₹20 lakh for special category states) are required to register for GST. Some categories like e-commerce sellers and inter-state suppliers must register regardless of turnover.

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