GST Liability | GST

GST liability is the amount which is to be paid to government and is the difference between input and output GST. For example

For a purchase of Rs. 80,000/- and a sale of Rs. 1,00,000/- with CGST is 10% and SGCT is 8% than the GST payable is Rs. 3600/-

What is GST?

GST Tax or Goods and Services Tax, is a tax which combines various indirect taxes being charged by Central and State governments, which resulted in multiple receipts/payment/compliance being needed for multi-state business.

 GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India (Except state of Jammu and Kashmir), to replace taxes levied by the central and state governments.

 It is levied on both goods and services. The main aim of GST is to centralize taxation for businesses so as to relieve them of burden of compliance and better manage their cash and finances.

 

 

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