What is Goods and Service Tax ?
Goods and Service Tax is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. Critics point out, however, that the GST may disproportionately burden people whose self-reported income is in the lowest and middle-income brackets, making it a regressive tax.
These critics argue that GST can therefore cause income inequality and contribute to social and economic disparities. To address these issues, some countries have introduced GST exemptions or reduced GST rates on essential goods and services, such as food and healthcare. Others have implemented GST credits or rebates to help offset the impact of GST on lower-income households. Most countries with a GST have a single unified GST system, which means that a single tax rate is applied throughout the country.
How to Calculate Goods and Service Tax?
Goods and Service Tax calculator uses Goods and Service Tax = Taxable Amount*Goods and Service Tax Rate to calculate the Goods and Service Tax, Goods and Service Tax is an indirect tax imposed on the supply of goods and services. Goods and Service Tax is denoted by GST symbol.
How to calculate Goods and Service Tax using this online calculator? To use this online calculator for Goods and Service Tax, enter Taxable Amount (TA) & Goods and Service Tax Rate (GR) and hit the calculate button. Here is how the Goods and Service Tax calculation can be explained with given input values -> 26 = 520*0.05.