👉 Good day! GST, or Goods and Services Tax, is a consumption tax applied to goods and services sold within a country. The GST rate varies by state in India, but typically ranges from 5% to 28%. The GST math involves calculating the tax based on the total value of goods or services (the 'taxable amount') and applying the respective GST rate. For instance, if you buy an item worth ₹100 in a state with a 12% GST rate, the tax would be ₹12 (12% of ₹100). The total amount you pay, including tax, would then be ₹112. This calculation is crucial for businesses to determine their tax liability and for consumers to understand the final price they pay. GST simplifies the tax structure by replacing multiple indirect taxes with a single tax, making it easier to administer and ensuring a more transparent pricing system.
