We know that each and every nation and its financial system alters with changing circumstances. Today, India is among the most rapidly growing economies, and, to have reached this level, it has experienced some major reforms such as Liberalization, Privatization, Globalisation in 1991, the Nationalization of Banks, demonetization, etc.

This is among the most major accomplishments that brought the country ahead by great strides. One such change that will put the Indian economy forward is the GST Bill, also recognized as the Goods and Services Tax Bill.

GST Bill: What Is It?

The GST Bill is formally named The Constitution Act, 2016 (One Hundred Twenty-Second Amendment). The bill was intended to create a unified market and dissolving the majority of indirect taxes, such as service taxes, central excise duties, vats, leisure, luxury taxes, cessation of products and services and surcharges, etc., into a single unified tax.

Listed below are some points that you should know regarding the GST Bill

  • Some of the key goals behind the GST introduction are to reduce the tax’s cascading impacts.
  • Central Tax GST (CGST)has incorporated, among many others, the income tax, general excise duty, and supplementary excise taxes (especially essential goods).
  • GST is an indirect standardized tax imposed on products and services manufactured and imported into a nation. India has 4 kinds of GST rates-5%, 12%, 18% and 28%.
  • State tax GST (SGST) has substituted several indirect taxes including, the tax on ads, amusement, leisure, and many more.
  • In addition, all kinds of businesses, small or large, must pay the same tax, thereby ensuring business equality.
  • The GST bill would refer to inter-state and intra-state transactions alike. This ensures that the taxes paid by the corporation in respect of its state dealings and the nation-wide transactions are the same.

While creating a GST bill/invoice you need to make sure that you follow the correct GST format. Listed below are some of the mandatory things that you are required to mention while crafting the GST Bill/Invoice.

  • Address, name and the GST identification number of the supplier
  • The nature of the bill/invoice (supplementary/tax/revised invoice)
  • Date
  • Address, name and the GST identification number of the receiver
  • When the price of goods surpasses Rs 50,000/- and the receiver is an unauthorized individual, then the name, contact details of that recipient along with the consignment delivery address.
  • Description of the services or goods offered
  • Quantity of products
  • HSN code for goods and products
  • Accounting code for services
  • The overall cost of the services and goods provided
  • Rate of the tax levied on the products and services
  • Name of the place which supplies and the name of the state to which the goods are supplied.
  • Delivery location
  • It should be mentioned if a reverse charge is applicable in that particular transaction or not.
  • The signature of the authorized representative.
  • Mandatory statement – “SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST”.

Please note that this statement is for a GST export bill/invoice.

  • The country to which the goods are being exported to.

When the bill is provided by an Input Service Provider, “amount of Credit Allocated” is always applied to the bill in place of the products or services’ rate and cost.

Calculating GST

The present GST rates in India are 5 percent, 12 percent, 18 percent, and 28 percent. by utilizing the formula mentioned below, companies, wholesalers, producers, and distributors can determine their GST amount

Add GST

GST amount = (Original Cost x GST%)/100

Net Price = Original Cost – GST Amount

Deduction Of GST

GST Amount = Original Cost – [Original Cost x {100/(100+GST)}]

Net Price = Original Cost – GST Amount

There are a lot of GST calculators available online, all over various the internet. These GST calculators really can help you calculate the GST. There are certain information that you require and will be expected to enter the same in order to determine the GST like the month of return filing, monthly filing date, filing date, total monthly tax liability, and transactions where a reverse charge applies.