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GST is an indirect tax which was introduced to replace multiple indirect taxes such as VAT, excise duty, CST, etc., that were prevalent in India.All businesses previously registered under the other acts are required to get themselves registered under the GST laws in order to file their GSTR monthly, quarterly or on an annual basis as applicable.
However, mistakes in GST filing are very common, especially when there are multiple items with different GST rates. This is when having an online GST calculator can be very convenient. In this article, we will explain how you can use the GST calculator, its components, GST calculation formula, reverse charge of GST and much more.
Actual Amount
₹
GST Amount
₹
Total Amount
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GST or Goods and Service Tax is an indirect tax uniformly levied by the Central Government all over India on all types of goods and services with regards to certain exceptions. It was launched by the Indian Government on 1st July 2017 to incorporate a single taxation system in the indirect tax segment. It is a comprehensive, multi-stage, destination-based tax which is levied on every value addition.
GST replaced most indirect taxes such as VAT, excise duty, CST etc. and brought the concept of a single indirect tax for individuals and organisations. It brought an end to the system of multiple taxation where tax on tax was levied.. This simplified and unified the tax regime of our country.
Goods and Services Tax is levied on all the stages of a product or service starting from the manufacturing stage, continuing till the sales for the ultimate consumption of goods and services. Various types of organisations from small, and medium to large enterprises are required to register themselves under the Goods and Service Tax law and a GSTIN or GST Identification Number is issued.
Primarily there are three main components in GST, which are as follows:
GST calculator is an online tool that calculates the GST on a given amount by simply entering the price of the product and the applicable GST rate, thus arriving at the total tax payable. It also helps you to determine the total amount of GST payable each under the IGST, CGST and SGST heads.
Using the online calculator is very simple. Enter the total value of items with the same GST rate, select the GST rate and click on ‘Calculate’. The calculator will show the pre-GST and post-GST amounts.
Calculation of Goods and Service Tax is quite simple in nature, it can be calculated simply by multiplying the total taxable amount by the GST rate. In case it is an inter-state transfer, the applicable CGST and SGST components are divided into two equal parts.
GST Calculation Formula
To calculate the formula, lets first understand the common terminologies used in the GST calculations:
Taxable Value: It is the actual cost of goods or services or both on which GST is charged. It is also known as GST Exclusive amount.
Invoice Value: It is the total of Taxable value + GST amount, also known as GST inclusive amount.
Example 1.
Ms. Amisha purchased goods from a local dealer worth Rs. 1,000 on which GST is applicable at the rate of 18%.
As it is a purchase within the state i.e Intra State, CGST & SGST would be applicable at the rate of 9% each.
Here, Taxable Value = Rs. 1,000/-
CGST = Rs. 1,000*9% = 90
SGST = Rs. 1,000*9% = 90
Total GST Amount = CGST +SGST = 90+90= Rs. 180/-
Invoice Value = Taxable Value + GST Value = Rs.1,000 + Rs.180 = Rs.1,180
Example 2:
Ms. Amisha of Gujarat purchased goods from Mr. Taneja of Uttar Pradesh worth Rs. 1,000 on which GST is applicable at the rate of 18%.
As it is a purchase outside the state i.e Inter State, IGST would be applicable at the rate of 18%.
Here, Taxable Value = Rs. 1,000/-
IGST = Rs. 1,000*18% =Rs.180
Total GST Amount = IGST Value = Rs. 180/-
Invoice Value = Taxable Value + GST Value = Rs.1,000 + Rs.180 = Rs.1,180
A GST calculator online is based on a mathematical formula which is as follows:
GST = Taxable amount x GST rate
Important Note:
Method of calculating the GST amount remains the same where goods or services are traded between states. i.e. supply of goods or services or both between states. Here, IGST would be applicable at the respective GST tax rate.
An online GST calculator enables you to obtain the GST value including price based on the applicable GST rate. It helps you to get the bifurcated CGST and SGST or calculate the IGST from the total GST amount. It removes the hassle of manual calculation and removes the chances of arithmetic errors saving time and energy by showing instant results.
Examples of Understanding GST Calculation
Let us understand the GST calculation in detail while comparing the same with pre-GST indirect tax norms.
Particulars |
Rate (%) |
Amount |
Invoice value |
12% |
100,000 |
GST |
12,000 |
|
Price to be charged on Invoice |
112,000 |
GST Calculation by Manufacturers:
Particulars |
Tax Rate (%) |
Pre-GST Regime calculation |
Post GST Regime Calculation |
Cost of Product |
– |
200,000 |
200,000 |
Profit |
10.00% |
20,000 |
20,000 |
Excise Duty |
12.50% |
27,500 |
Nil |
Total |
– |
247,500 |
220,000 |
VAT |
12.50% |
30,938 |
Nil |
CGST |
6% |
Nil |
13,200 |
SGST |
6% |
Nil |
13,200 |
Final Invoice to Wholesaler |
– |
278,438 |
246,400 |
GST Calculations by Wholesalers & Retailers:
Particulars |
Rate (%) |
Amount Pre-GST |
Amount under GST |
Cost of the product |
– |
278,438 |
246,400 |
Profit |
10% |
27,844 |
24,640 |
Total |
– |
306,282 |
271,040 |
VAT |
12.50% |
7,347 |
Nil |
CGST |
6% |
Nil |
3,062 |
SGST |
6% |
Nil |
3,062 |
Final Invoice to end-consumer |
– |
313,629 |
277,164 |
Listed below are the applicable GST percentages in India:
No GST is applicable on necessary items like wheat, milk, flour etc.
0.25% GST is applicable on rough diamonds
3% GST on gold, silver and other precious metals.
5% GST
12% GST
18% GST
28% GST
It is the amount which includes the sale price of goods or services along with the applicable GST amount in it.
It is the amount which refers to the sale price of goods and services which does not include the applicable amount of Goods and Service Tax.
In simple terms, the reverse charge of GST means the recipient of the goods and services is liable to make the GST payment instead of a supplier. Hence, the calculation in the case of reverse charge is also similar to normal GST calculation.
For instance, Mr X bought a product whose GST exclusive cost is Rs. 10,000 and the applicable GST rate is 18%. Hence Mr X (recipient of goods) has to pay Rs. 10,000 to the supplier/dealer and the GST amount of Rs. 1,800 has to be paid to the government by him.
Here it is the liability of recipient to pay tax instead of supplier.
Since the process of calculation of GST may be complex and confusing or even some times time consuming due to various reasons, we made it easy for you.
Steps for using this calculator –
First, select GST exclusive/inclusive as per your need.
Enter the original amount.
Select your required GST rate from the drop down given.
Select CALCULATE GST to get the results.
To sum up, Goods and Service Tax is an indirect tax introduced by the Indian Government that replaced multiple indirect taxes such as VAT, excise duty, CST, etc. A GST calculator can help you to instantly calculate the GST inclusive price in no time upon entering two inputs: GST exclusive price of a product or service and the applicable GST rate.
Frequently Asked Questions
GST calculator can with no time upon receipt of proper inputs calculate the amount of tax payable accurately thus reducing the risk of arithmetic errors. With its easy-to-use features and fast results, our GST calculator is perfect for businesses that need to calculate GST on multiple transactions It removes the hassle of manual calculation, and helps to determine accurate results instantly.
We help you to make informed insurance decisions for a lifetime.
#Tax benefits & exemptions are subject to conditions of the Income Tax Act, 1961 and its provisions.
#Tax Laws are subject to change from time to time.
#Customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
ARN - INT/ED/01/24/8435