Frequently Asked Questions
ITC allows businesses to reduce their tax liability on sales by claiming a credit for the GST they have already paid on their purchases. It’s a key feature of GST that eliminates the cascading tax effect.
The 18% GST slab is the most common and applies to a wide range of goods and services, including many daily use items and most professional services.
The GST is split to ensure that both the Central and the State governments get their share of the tax revenue from transactions within a state.
An intra-state transaction involves a supplier and a buyer located in the same state or union territory. An inter-state transaction occurs when the supplier and buyer are in different states or when goods are imported.
The formula to remove GST is: Original Amount = Total Amount / (1 + (GST Rate / 100)). This is a common requirement for businesses filing returns.
GST is an indirect tax. It is collected from the customer by the business (the seller) and then paid to the government. The final tax burden is borne by the consumer.
It helps small businesses, which may not have dedicated accountants, to quickly generate accurate invoices, ensure correct tax collection, and better understand their tax obligations.
