Question

Disha purchased some beauty products and paid GST of Rs. $1500$ . She sold all the beauty products to one customer and collected GST of Rs.$1700$. Find the CGST and SGST to be paid.

Answer 1

Hint: To find the CGST and SGST we will first understand the definition and meaning of these two after understanding what really a GST is. Then we will divide the GST amount into half and that half part will be CGST and another one will be SGST.

Complete step-by-step answer:
As we know that the full form of GST is Goods and Service Tax. GST is a single, indirect tax levied by the Indian Government. The bill is designed to bring together all indirect taxes including VAT, Central Excise Tax, Luxury Tax, Service Tax Act, Entertainment Tax and Entry Tax. To state it clearly, all products and services manufactured in the nation associated with the imported products would provide a standard indirect tax through GST, implying GST.
The GST Act was passed in Parliament on March 29, 2017. The tax came into force on July 1, 2017. GST was done to improve the nation’s economic growth and also to deal more effectively with taxes.
Now, there are three types of GST:
A. Central Goods and Services Tax (CGST) : CGST is the tax levied on intrastate service and product distribution.
B. Integrated Goods and Services Tax (IGST) : IGST applies to the taxes paid for the international delivery of services & goods
C. State Goods and Services Tax (SGST) : SGST is the tax levied on goods and services provided within the boundaries of a given state.
Now, we know that if CGST & SGST to be applied then CGST and SGST both amounts are half of the total GST amount.
Now, Disha sold all the products at GST of Rs.$1700$,
Now CGST = $\dfrac{GST}{2}=\dfrac{1700}{2}=850$
Similarly, SGST = $\dfrac{GST}{2}=\dfrac{1700}{2}=850$
Therefore, the answer is Rs. $850$.

Note: There are various percent slabs when the GST is calculated that is \[5\%,12\%,18\%\text{ and 28 }\!\!\%\!\!\text{ }\] . GST is fixed over $1300$ goods and $500$ services under the above $4$ tax slabs. Around $81\%$ of all goods and services fall below or in the $18\%$ tax slab.