ICSE Class 10
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๐Ÿ“– Summaries โ€บ Mathematics

Goods and Services Tax (GST)

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Chapter in a nutshell: GST is a single indirect tax on the supply of goods/services. For an intra-state sale it splits equally into CGST + SGST; for an inter-state sale it is IGST. A dealer pays GST only on the value he adds, using Input Tax Credit (ITC) โ€” so GST payable = Output GST โˆ’ Input GST.

1. Key Ideas

  • GST (Goods and Services Tax): an indirect tax charged on the value of supply of goods/services, paid finally by the consumer.
  • Intra-state sale (within a state): GST = CGST + SGST, each half the GST rate (to Centre and State).
  • Inter-state sale (between states): GST = IGST (full rate, to the Centre).
  • Input Tax Credit (ITC): a dealer deducts the GST he paid on purchases (input) from the GST he collects on sales (output).

2. Core Formulas

$$\text{GST} = \frac{\text{rate of GST}}{100}\times\text{taxable value}$$
  • Intra-state: $\text{CGST}=\text{SGST}=\dfrac{1}{2}\times\text{GST}$.
  • Inter-state: $\text{IGST}=\text{rate}\%\times\text{taxable value}$.
  • Taxable value = Marked Price โˆ’ Discount (if any).
  • Amount paid by buyer = taxable value + GST.
  • GST payable to government by a dealer $=\text{Output GST} - \text{Input GST (ITC)}$.

3. The Input Tax Credit Chain

Each dealer in the chain pays tax only on his value addition:
  • Output GST = GST collected from the customer (on his selling price).
  • Input GST (ITC) = GST already paid to his supplier.
  • Net GST deposited = Output GST โˆ’ Input GST.
The final consumer bears the whole tax; dealers only pass it along.

4. Worked Examples (ICSE pattern)

Q1. A shopkeeper sells goods worth โ‚น2000 within the state at 18% GST. Find CGST, SGST and the amount paid by the customer. Solution: GST = 18% ร— 2000 = โ‚น360. CGST = SGST = โ‚น180 each. Amount = 2000 + 360 = โ‚น2360.

Q2. Marked price โ‚น5000, discount 10%, GST 12% (intra-state). Find the tax and total. Solution: Taxable value = 5000 โˆ’ 500 = โ‚น4500. GST = 12% ร— 4500 = โ‚น540 (CGST = SGST = โ‚น270). Total = โ‚น5040.

Q3. A dealer in Delhi sells to a dealer in Mumbai goods worth โ‚น10000 at 5% GST. Which tax applies and how much? Solution: Inter-state โ†’ IGST = 5% ร— 10000 = โ‚น500.

Q4. A manufacturer buys raw material for โ‚น8000 (GST 18%) and sells the finished goods for โ‚น12000 (GST 18%), intra-state. Find the GST he deposits. Solution: Input GST = 18% ร— 8000 = โ‚น1440. Output GST = 18% ร— 12000 = โ‚น2160. GST deposited = 2160 โˆ’ 1440 = โ‚น720.

Q5. For an intra-state sale, CGST = โ‚น120 and MP = โ‚น2000 (no discount). Find the GST rate. Solution: GST = 2ร—120 = โ‚น240; rate = (240/2000)ร—100 = 12%.

Q6. A retailer buys an article for โ‚น15000 and sells it for โ‚น18000, both at 12% GST (intra-state). Find his net GST liability and the buyer's price. Solution: Input GST = 1800; Output GST = 2160; net GST = โ‚น360. Buyer pays 18000 + 2160 = โ‚น20160.

5. Formulas (quick reference)

  • $\text{GST}=\dfrac{r}{100}\times\text{taxable value}$ (r = GST %).
  • Intra-state: $\text{CGST}=\text{SGST}=\dfrac{\text{GST}}{2}$.
  • Inter-state: $\text{IGST}=\dfrac{r}{100}\times\text{taxable value}$.
  • Taxable value = MP โˆ’ discount; discount = (discount% ร— MP).
  • Amount paid = taxable value + GST.
  • Net GST to government = Output GST โˆ’ Input Tax Credit.

6. Key Terms โ€” Quick Glossary

TermOne-line definition
GSTindirect tax on supply of goods/services.
CGST / SGSTCentral / State GST (intra-state, each half).
IGSTIntegrated GST (inter-state, full rate).
Input Tax CreditGST paid on purchases, set off against output GST.
Taxable valueprice on which GST is charged (MP โˆ’ discount).
Output GSTGST collected on sales.
Input GSTGST paid on purchases.
Intra-state / inter-statewithin / between states.

7. Common Mistakes to Avoid

  • Charging GST on the marked price when a discount applies โ€” use taxable value (MP โˆ’ discount).
  • Using IGST for an intra-state sale โ€” there it's CGST + SGST.
  • Forgetting CGST = SGST = half the GST for intra-state.
  • Ignoring Input Tax Credit โ€” a dealer deposits only output โˆ’ input GST.
  • Adding CGST and SGST as if they were extra to the GST โ€” together they equal the GST.

8. Likely Exam Questions (with crisp answers)

  1. What is GST? โ†’ A single indirect tax on the supply of goods and services.
  2. How is GST split in an intra-state sale? โ†’ Into CGST and SGST, each half the rate.
  3. What tax applies to an inter-state sale? โ†’ IGST (the full rate).
  4. Define Input Tax Credit. โ†’ Credit for GST already paid on purchases, set off against output GST.
  5. How is GST payable by a dealer calculated? โ†’ Output GST โˆ’ Input GST (ITC).
  6. On what value is GST charged when there is a discount? โ†’ The taxable value = MP โˆ’ discount.
  7. If GST is 18%, what are CGST and SGST? โ†’ 9% each.
  8. Who finally bears the GST? โ†’ The end consumer.
  9. Give the formula for GST amount. โ†’ (rate/100) ร— taxable value.
  10. Find CGST if GST on an item is โ‚น300 (intra-state). โ†’ โ‚น150.
  11. Is GST a direct or indirect tax? โ†’ Indirect.
  12. Why does GST avoid "tax on tax"? โ†’ Because of Input Tax Credit at each stage.
  13. Total amount a buyer pays = ? โ†’ Taxable value + GST.
  14. If IGST = โ‚น500 at 5%, what is the taxable value? โ†’ โ‚น10000.

9. More Worked Examples

Q7. A wholesaler in Kolkata sells to a retailer in Kolkata goods of value โ‚น25000 at 28% GST. Find CGST, SGST and the retailer's cost. Solution: GST = 28% ร— 25000 = โ‚น7000; CGST = SGST = โ‚น3500. Cost = 25000 + 7000 = โ‚น32000. Q8. A retailer buys an article (โ‚น6000, GST 12%) and sells it at a profit of โ‚น1500 (intra-state, 12%). Find his net GST. Solution: SP = 7500; Input GST = 720; Output GST = 900; net GST = โ‚น180. Q9. The printed price of a TV is โ‚น40000, discount 5%, GST 18% (intra-state). Find the bill amount. Solution: Taxable value = 40000 โˆ’ 2000 = 38000; GST = 18% ร— 38000 = โ‚น6840; bill = โ‚น44840. Q10. A dealer pays IGST of โ‚น1800 on a purchase and collects โ‚น2500 IGST on the sale. Find the IGST he deposits. Solution: 2500 โˆ’ 1800 = โ‚น700. Q11. GST on an article is โ‚น450 (intra-state). State the CGST and SGST. Solution: CGST = SGST = โ‚น225 each. Q12. For an inter-state sale at 12%, the IGST is โ‚น600. Find the taxable value. Solution: Taxable value = 600 รท 0.12 = โ‚น5000.

10. Solving Steps (method)

  1. Find the taxable value (subtract any discount from MP).
  2. Compute GST = rate ร— taxable value.
  3. Intra-state: split into CGST + SGST (half each); inter-state: it is IGST.
  4. For a dealer, net GST = output GST โˆ’ input GST (ITC).
  5. Total bill = taxable value + GST.

11. More Exam Questions (with crisp answers)

  1. Two states are involved in a sale โ€” which GST applies? โ†’ IGST.
  2. Same state sale โ€” which GSTs apply? โ†’ CGST and SGST.
  3. Who collects CGST and SGST? โ†’ The Central and State governments respectively.
  4. What is the GST on goods of โ‚น3000 at 5%? โ†’ โ‚น150.
  5. Define value addition. โ†’ The increase in value a dealer adds before selling.
  6. If a dealer's output GST equals his input GST, what does he deposit? โ†’ Nothing (โ‚น0).
  7. Discount of 10% on โ‚น2000 โ€” taxable value? โ†’ โ‚น1800.
  8. State one advantage of GST. โ†’ It removes the cascading "tax on tax" effect.
  9. Is the seller or buyer finally taxed? โ†’ The final buyer/consumer.
  10. CGST = โ‚น90 (intra-state) โ€” what is the total GST? โ†’ โ‚น180.

12. Final Quick-Revision Q&A

  1. Expand CGST, SGST, IGST. โ†’ Central, State and Integrated GST.
  2. On a 28% intra-state sale, what is each of CGST and SGST? โ†’ 14% each.
  3. What replaces many older indirect taxes in India? โ†’ GST.
  4. A buyer pays 2360 for goods worth 2000 โ€” what is the GST rate? โ†’ 18%.
  5. State the taxable value formula. โ†’ Marked price minus discount.
  6. Net GST when output is 900 and input is 900? โ†’ โ‚น0.
  7. Which government gets IGST? โ†’ The Central government.
  8. Is GST charged before or after discount? โ†’ After discount (on the taxable value).
  9. Define indirect tax. โ†’ A tax collected by an intermediary (dealer) from the consumer.
  10. Total tax on 5000 at 12% intra-state, split how? โ†’ โ‚น600 total; CGST 300 + SGST 300.
  11. Find GST on 7500 at 12 percent. โ†’ โ‚น900.
  12. If discount is 20 percent on 1000, the taxable value is? โ†’ โ‚น800.
  13. What does ITC stand for? โ†’ Input Tax Credit.
  14. Who deposits the difference of output and input GST? โ†’ The dealer.
  15. Name the tax type GST belongs to. โ†’ Indirect tax.
  16. On inter-state supply, CGST and SGST are charged โ€” true or false? โ†’ False (only IGST).
  17. Amount paid = taxable value + ? โ†’ GST.
  18. If SGST is 250 intra-state, CGST is? โ†’ โ‚น250.
  19. A manufacturer adds 4000 value at 18 percent โ€” extra GST he deposits? โ†’ โ‚น720.
  20. Define cascading tax effect. โ†’ Tax charged on an amount that already includes tax (tax on tax).
  21. How does GST remove cascading? โ†’ Through Input Tax Credit at every stage.
  22. Find IGST on 20000 at 18 percent. โ†’ โ‚น3600.
  23. Two dealers in the same state โ€” intra or inter-state? โ†’ Intra-state.
  24. Total GST if CGST is 9 percent and SGST is 9 percent? โ†’ 18 percent.
  25. Find the bill for goods of 10000 at 5 percent intra-state. โ†’ โ‚น10500.
  26. Name the credit mechanism that links the whole supply chain. โ†’ Input Tax Credit (ITC).
  27. State who ultimately pays GST in one line. โ†’ The final consumer pays the full GST; dealers only collect and pass it on.
  28. On 38000 taxable value at 18 percent, find the GST. โ†’ โ‚น6840.
  29. What is the GST on a 2500 service at 18 percent? โ†’ โ‚น450.
  30. For intra-state, that 450 splits into? โ†’ CGST 225 + SGST 225.
  31. Summarise GST computation in one line. โ†’ GST = rate x taxable value; intra-state splits into CGST+SGST, inter-state is IGST, and dealers pay output minus input GST.
  32. Name the older taxes GST replaced (any one). โ†’ VAT / service tax / excise duty.
  33. Is ITC available across the whole supply chain? โ†’ Yes, at every registered stage.

Formulas โ€” Current & Prerequisite

Current

  • Discount = Marked Price (MP) ร— (rate%/100); Selling Price (SP) = MP โˆ’ Discount.
  • GST = Taxable value ร— (GST%/100); within a state: CGST = SGST = GST/2; inter-state: IGST = full GST%.
  • Amount paid by consumer = SP + GST.
  • Input Tax Credit (ITC): tax payable by a dealer = Output GST โˆ’ Input GST.

Prerequisite

  • Profit = SP โˆ’ CP; Loss = CP โˆ’ SP; Profit% = (Profit/CP)ร—100; Loss% = (Loss/CP)ร—100.
  • SP = CP ร— (100 ยฑ gain/loss%)/100; reverse: CP = SP ร— 100/(100 ยฑ %).
  • Percentage: $x\%\text{ of }N = \dfrac{x}{100}\times N$.