Goods and Services Tax (GST) for India

Goods and Services Tax (GST) is a single tax imposed on the supply of goods and services in India, right from the manufacturer to the consumer. This is a multi-stage, destination-based tax levied on every value addition. The seller collects GST from buyers on the sale of specific goods and services and deposits the amount to the government

The India Localization Tax Engine SuiteApp enables you to calculate India GST on the sale of goods and services. The SuiteApp also enables you to create statutory adjustment journals and generate E-Way bills.

GST Tax Types

GST is categorized into the following types based on the transaction.

State Goods and Services Tax (SGST) – This tax is payable on the sale of goods and services within a state. The state government collects this tax.
Central Goods and Services Tax (CGST) – This tax is levied on the supply of intrastate goods and services. The Central government collects this tax.
Union Territory Goods and Services Tax (UTGST) – This tax is payable on the sale of goods and services in Union Territories, such as Andaman and Nicobar, Daman and Diu, Chandigarh, Dadra, etc.
Integrated Goods and Services Tax (IGST) – This tax is levied on the supply of interstate goods and services. When businesses transfer services from goods from one state to another, they need to pay this form of tax. The Central government collects this tax.

GST Tax Components

The following tax rate slabs apply to various goods and services under GST:

Nil Rated – This tax rate applies to essential goods and services.
Exempted goods (No tax applicable) – This tax rate applies to supplies exempted from tax liability. GST is not applicable on these kind of supplies. Input Tax Credit (ITC) cannot be claimed on supplies exempted from GST.
5% rate slab – This tax rate applies mostly to goods and services included in the Consumer Price Index (CPI) and items for mass consumption.
12% and 18% rate slabs – These tax rates apply to goods and services that include capital goods, industrial intermediaries, iron and steel, financial, and telecommunication services.
28% rate slab – This tax rate applies to luxury goods and services.

Before you start using the India GST feature, read the following topics:

GST Tax Types

GST Tax Components

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