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Hiral Jain
Content writer • 1y
Hey there, everyone! Today, we're diving into some key aspects of Gst to lay the groundwork for our discussion on illegal businesses. This knowledge will be crucial for what's coming up next. Today we will be learning about input and output Gst, Input Gst is the one which businesses pay while purchasing raw materials/ intermediary goods and output Gst is one which the business charges from customers upon sale and the difference between these two is paid to the government. Sounds messy right? Let's take an example A owns a shirt business and he purchases raw materials from B This year he purchased raw materials worth 100 and paid 10 as Gst. Later he manufactured shirts and sold them for 120 and collected 18₹ as tac, He would pay 8₹ to govt in the form of Gst and later on income tax on his profit i.e. ₹20. Byee!
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