GST(Goods and service tax )

What is income tax?

A compulsory financial support or contribution imposed by the government on income to raise revenue income property whealth,sales,cost and services is called income tax

There are three types of tax existing of india 

1

Direct tax:-A tax which is directly imposed on a person is called Direct tax.

Example income tax,profational,whealth tax 

2

Indirect tax:- A tax in which the burden of tax sifted to consumer is called indirect tax.Example at present GST/VAT/EXCISE DUTY/CUSTOM DUTY/OCTROY/CST……..

Introduction of GST

GST Percentage slab

1)0%

2)5%(

3)12%

4)18%

5)28%(on luxury item)

Tax is two types 1) Direct tax 2) indirect tax

2.1)GST 

2.1.1)Intra state GST 

2.1.2)Inter state GST

2.1.1.1)CGST

2.1.1.2)SGST

2.1.2.1)IGST(CENTRAL GOVERNMENT GST)

JOURNAL ENTRIES 

1

Purchase account Dr 100000

Input CGST account Dr 14000

Input SGST account Dr 14000

        To Bank account 128000

(Being good purchase)

2

Bank account Dr 256000

To sales account 200000

To output CGST account 28000

To output SGST account 28000

(Being good sales)

3

GST adjusted 

Output GST account 56000

To input GST account 28000

To Bank account (balancing amount)28000

(Being GST transfered to government account)

Slogan of GST 

ONE NATION ONE TAX(FOR GST)