GST Calculator Online: How to Calculate Your GST Online
Updated: Oct 27
The parliament enacted the GST Act on March 29, 2017, and it went into effect on July 1 of the same year. The Indian government imposes the Goods and Services Tax, an indirect tax, on all goods and services that are purchased within its territorial authority. The previous system's several indirect taxes, including sales tax, VAT, excise duty, and others, have been replaced by a single tax. All businesses that operate in India are required by law to register for the GST. They must possess a GSTIN, or GST Identification Number. This tax is imposed on consumers for all goods and services they use and purchase. It is therefore crucial that one knows how to compute GST correctly. The GST calculator can assist you in assessing the same. In this article, we will explain the process of calculating your GST online using a GST calculator.
Table of content
What is GST?
The indirect tax known as the Goods and Services Tax (GST) is applied to the provision of goods and services in India. There is a full, multi-stage, destination-based GST tax applied to each value addition. On July 1st, 2017, the country's indirect taxes were largely replaced with the Goods and Services Tax (GST). Five different tax rates are applicable to goods and services under the GST. These are- 0%, 5%, 12%, 18%, and 28%. Nonetheless, several goods are exempt from GST taxes, including electricity, alcoholic beverages, and petroleum products. These products were subject to separate taxes from each state government under the previous tax scheme. As a result of the unified tax system, taxpayers can now ascertain the tax imposed under the GST regime at numerous stages for different goods and services. The taxpayer must be aware of the GST rates that apply to each category in order to calculate GST. The GST is divided into four slabs: 5%, 12%, 18%, and 28%.
A straightforward example can help clarify how GST is calculated:
The net price that is established when a good or service is sold for Rs. 1,000 plus (1,000X(18/100)) = 1,000+180 is equal to Rs. 1,180 if the applicable GST rate is 18%.
Formula for Calculating GST
The following formula can be used by a taxpayer to determine GST:
To increase the basic amount by GST,
Add GST
Net Price = Original Cost +GST Amount; GST Amount = (Original Cost * GST%) / 100
To deduct GST from the base amount,
Remove GST
Original Cost - (Original Cost * (100 / (100 + GST% ) ) = GST Amount
Original Cost - GST Amount gives the Net Price.
Tax Heads under GST
The four main forms of GST are the Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UTGST), and Integrated Goods and Services Tax (IGST). When a supply is made between states and the provider is located in a separate state, the interstate GST is applied. In intrastate deliveries, the rate of CGST and SGST is equivalent (about half the GST rate applicable for IGST) when the place of supply is in the same State as the supplier's location.
What is a GST Calculator?
The easy-to-use online GST calculator can help taxpayers to calculate the amount of GST due in a given month or quarter. Buyers, manufacturers, and distributors are just a few of the users that can utilise this calculator.
Advantages of GST Calculator
The simple GST calculator can be used to determine the gross or net product pricing on percentage-based GST rates. It aids in precisely calculating the IGST or providing the bifurcation of the rate between CGST and SGST. The GST calculator computes the entire cost of goods and services faster and with less inaccuracy from human mistakes.
How to calculate GST using our TaxBuddy GST calculator?
By following these easy steps, you can utilise the GST calculator with ease:
Step 1: Enter the information below:
The total cost of a good or service
The applicable GST rates are 5%, 12%, 18%, and 28%
Step 2: Select the "calculate" option. Together with the final/gross price of the products and services that need to be billed, the TaxBuddy GST calculator will show the tax amounts for each tax head, including CGST, SGST, and IGST.
GST Calculation Formula
The following formula makes it simple for any manufacturer, retailer, wholesaler, or business to calculate GST:
Where GST is excluded:
The Value of Supply x GST%/100 = GST Amount
Value of supply plus the amount of GST equals the price to be charged.
When GST is included in the supply's value:
Value of Supply - [Value of Supply x {100/(100+GST%)}] equals GST Amount.
Illustrations
Here is a basic example of how to calculate GST:
Given below is a simple illustration for GST calculation:
Particulars | Rate(%) | Amount |
Invoice value | Rs. 100,000 | |
GST | 12% | Rs. 12,000 |
Price charged on the Invoice | Rs. 112,000 |
GST computation by manufacturers: Due to a reduction in tax, the manufacturer saves Rs. 160 on a cost of 1000 points, or 16% of the original cost. Manufacturers experience a decrease in costs, which they then transfer to wholesalers, retailers, and final customers throughout the supply chain.
Particulars | Rate | Amount Pre-GST | Amount under GST |
Cost of the product | – | Rs. 200,000 | Rs. 200,000 |
Profit | 10% | Rs. 20,000 | Rs. 20,000 |
Excise Duty | 12.50% | Rs. 27,500 | Nil |
Total | – | Rs. 247,500 | Rs. 220,000 |
VAT | 12.50% | Rs. 30,938 | Nil |
CGST | 6% | Nil | Rs. 13,200 |
SGST | 6% | Nil | Rs. 13,200 |
Final Invoice for the wholesaler | – | Rs. 278,438 | Rs. 246,400 |
GST computation by retailers and wholesalers:
The final customer must pay a lower price for the items at the same profit margin that wholesalers and retailers make, with the product's cost falling under the purview of the GST regime.
Particulars | Rate | Amount Pre-GST | Amount under GST |
Cost of the product | – | Rs. 278,438 | Rs. 246,400 |
Profit | 10% | Rs. 27,844 | Rs. 24,640 |
Total | – | Rs. 306,282 | Rs. 271,040 |
VAT (Rs. 306282 x 12.5%) – (Credit on VAT paid above Rs. 30,938) | 12.50% | Rs. 7,347 | Nil |
CGST (Rs. 271040 x 6%) – (Credit on CGST paid above Rs.13,200) | 6% | Nil | Rs. 3,062 |
SGST (Rs. 271040 x 6%) – (Credit on SGST paid above Rs.13,200) | 6% | Nil | Rs. 3,062 |
Final Invoice to the end-consumer | – | Rs. 313,629 | Rs. 277,164 |
Under the GST regime, the product's cost is due, and the final customer must pay less for the goods while wholesalers and retailers keep the same profit margin.
Conclusion
Using a GST calculator is a smart move for any taxpayer as it speeds up calculations and reduces the margin of error. You can rely on the online GST calculator provided by TaxBuddy to get the numbers right and do it quickly. Also, do not skimp on expert advice if you feel that you need help with tax calculations and payments.
FAQ
Q1. How to calculate GST percentage?
The GST is divided into four slabs: 5%, 12%, 18%, and 28%. The net price will be as follows: 1,000+ (1,000X (12/100)) = 1,000+120 = Rs. 1,120, for example, if a good or service is sold for Rs. 1,000 and the applicable GST rate is 12%.
Q2. What taxes are subsumed under the GST?
The Central government is required to abolish prior tax categories such as excise, service tax, countervailing duty, and customs in order to implement the GST. States are required to do away with the entertainment tax, luxury tax, VAT, and octroi. These are all now included in the GST.
Q3. What are the tax slabs under the GST?
There are four tax slabs as of July 2019: 5%, 12%, 18%, and 28%. The GST Council has chosen almost 1300 goods and more than 600 services to be included in this new tax structure.
Q4. Why was the GST introduced in India?
In India, a number of indirect taxes were eliminated with the introduction of the Goods and Services Tax. It has also reduced the revenue received by the Central and State governments. Simplifying the tax system is one of the Ministry of Finance's other stated goals.
Q5. What is the GST calculator online?
An online application called a GST calculator is used to determine how much GST is owed for a given time period.
Q6. What are the benefits of the GST calculator?
Calculating the total cost of goods and services as well as the tax liability is made easier and more accurate with the help of the GST calculator, which also saves you time.
Q7. Who can use the GST calculator?
The GST calculator is available to all parties engaged in trade. This includes manufacturers, wholesalers, and purchasers.
Q8. How can a manufacturer/wholesaler use the GST calculator?
Add the profit ratio percentage, GST rate, and cost of goods/production. Together with the production cost, it will show the total tax, CGST, and SGST.
Q9. How can a buyer use the GST calculator?
Enter the GST rate after the net price before GST has been entered. It will calculate the manufacturing cost, CGST, SGST, and total tax.
Q10. How can I calculate GST late fees?
If your CGST and SGST filings are not submitted on time, there are late costs. For every form of GST tax, there is a price of INR100 per day, with a daily maximum of INR200 and a maximum of INR5,000 each period. On unpaid taxes, interest may also be paid.
Q11. How to calculate CGST and SGST?
The CGST portion of 14% (28/2 = 14% ) is due if the GST rate is 28%. The GST rate that applies / 2 is SGST/UTGST. (SGST is 28/2=14% for a 28% charge).
Q12. How to find taxable value from tax amount in GST?
Given a sales price of Rs. 1,000 and an applicable GST rate of 12%, the net price calculated is as follows: 1,000 + (1,000 X (12/100)) = 1,000 + 120 = Rs. 1,120.
Q13. What is GST bifurcation?
There are four slabs of GST rates in India for different goods and services: 5%, 12%, 18%, and 28%. Since the Goods and Services Tax was implemented, the GST Council has revised the GST rates on a number of different products (GST).
Q14. How to calculate GST on medicine?
You must multiply the cost of your goods by the GST rate to get the amount of GST you must pay on medical equipment and medications. For example, if the medication GST rate is 12% and your medical device costs Rs. 1000, you will have to pay Rs. 120 in GST on medical equipment.
Q15. What is the GST on LIC premium?
The GST is 18% for LIC term plans and health plans, and it is 4.5% for endowment plans and pension plans in the first year and 2.25% in the following years. GST is 18% for fund management and other fees associated with ULIPs, but not for the premium itself.
Q16. What is the GST on gold?
In India, the value of gold is subject to a 3% GST rate (i.e., 1.5% CGST + 1.5% SGST) upon purchase.
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