Goods and Services Tax (GST)

GST is a tax charged on the supply of goods and services. In Mathematics, students apply the given GST rate to calculate tax and the final price of an item or service.

First identify the taxable value and the GST rate given in the question. GST is calculated as the stated percentage of the taxable value, and the tax is then added to obtain the GST-inclusive price.

For an intra-state supply, the GST amount is commonly divided into Central GST (CGST) and State GST (SGST). When the question gives equal rates for both, each component is half of the total GST rate.

A GST-exclusive price is the taxable price before GST is added. A GST-inclusive price already contains GST, so questions may require finding either the original taxable value or the final amount.