GST (Goods and Services Tax)
India's indirect tax on the supply of goods and services, charged as CGST plus SGST within a state and as IGST between states.
GST replaced most of the older indirect taxes with one tax charged at each stage of supply. You collect it from your customer, claim credit for the GST you paid your suppliers, and pay the difference to the government.
The two-part split
Within your own state a sale carries CGST and SGST, each at half the total rate. Across state lines it carries IGST at the full rate. The customer pays the same either way — the split only decides which government gets which share.
What decides the rate
The item's HSN code, not your invoice format and not what the supplier charged you. Set the code and rate on the item once and every document picks it up.
Registration
Businesses must register once turnover crosses the threshold for their state and category, and in some cases regardless of turnover. Thresholds and special cases change — confirm your position with your tax advisor rather than relying on a number you read somewhere.
How KillStock handles it
Tax rates and HSN codes sit on the item master. Invoices split CGST, SGST or IGST from the place of supply, and the GST summary, GST by-HSN and GST returns reports are built from the same documents you issued — so your filing and your books come from one set of numbers.
A common mistake
Charging CGST and SGST on an interstate sale. The tax total looks right, your customer's credit does not match, and both of you spend the next month correcting it.