GST

GST(Goods and Services Tax)?
This is indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc.
Levied on the supply of goods and services.

Example-1: Table Manufacturing

let's suppose I am table manufacturer, who purchases wood at 118(100+18%GST)
and sold it at 236(200+18% GST). 118 I paid and 236 i recieved from customer. 

Wood seller --[100 + 18%GST]--> Purchase wood at 118

Created Table --[200 + 18%GST]--> Sold to Customer at 236
Input Tax = 18/- (-18) Amount of tax paid by Me(business) for purchase of goods or services that are used for business purposes.
Output Tax = 36/- (+36) GST collected by a Me(business) on the sale of goods or services.
Tax to be paid to Govt: Output Tax - Input Tax = 18/-

Example-2: Exporting IT Services outside India

let's suppose I am IT Solutions Provider. I worked on client project and recieved 1000/- from client outside India.
I purchased Desktop table for my business at cost 100+18%GST = 118
Exports are zero-rated under GST, meaning you don't charge GST on export services, but you can claim Input Tax 

Table --[100 + 18%GST]--> Purchase table at 118     //Paid GST=18.

Created Software --[1000 + 0=GST] --> Recieved from Customer.   //Exports are 0 rated GST.
Input Tax = 18/- (-18) Amount of tax paid by Me(business) for purchase of goods that are used for business purposes.
Output Tax = 0. GST collected by a Me(business) on the sale of services, exports are 0 rated GST.
Claim the Input Tax (-18): Input Tax cannot be credited into Bank Account.
Sell some services/product to customer in INDIA and charge GST. I sold laptop (200+18%GST=236/-) to customer in India. Output tax=36/-
Tax to be paid to Govt: Output Tax - Input Tax = 18/-