
Calculate GST in India: Rates, Examples and How It Works
What is GST in India and how does it work?
The Value Added Tax or GST is a tax applied to the sale of goods or services. The GST is collected throughout the production and distribution chain, ensuring that at the end of it, it is the consumers who pay it.
To determine the GST you need to consider the sale price of the product or service offered, and also a specific percentage to obtain the final cost of the GST. The percentage to be charged varies depending on the product or service in question. Similarly, on the social demands that the countries in question face.
The standard percentages are usually imposed on the purchase of general goods and services, while the lower percentages, usually correspond to essential products or food. For example, a smartphone may have a GST of 18%, which would be the standard GST; but certain selected products could have one of 5%, which would be a reduced GST.
Types of GST in India
General GST of 18%
Reduced GST of 5%