GST has been a concept that changed how the tax was levied throughout the supply chain. The introduction of GST proved to eliminate many middle taxes, making the supply and selling of goods and services easy. Moreover, the introduction of the GST calculator made determining the GST amount easier and more accurately. The calculator is an easy-to-use tool for the taxpayers to calculate the GST amount they have to pay to avail of a service or goods.
Table of contents
- What is the Goods and Services Tax (GST)?
- Different GST Tax Heads
- GST Calculation Formula
- What is a GST Calculator?
- How to Calculate GST Using GST Calculator?
- Advantages of GST Calculator
- GST Percentage Rate in India
- Calculation Using GST Calculator in Reverse Charge
- Understanding GST Calculation with Example
- GST Calculation for Manufacturers
- GST Calculation for Retailers & Wholesalers
In this write-up, learn more about the GST calculator online, ways to use it and the formula it works on in a more detailed manner.
What is the Goods and Services Tax (GST)?
Goods and Services Tax, also known as GST, is an indirect tax that came into existence in 2017. GST concept has existed in the country since 2000 but was accepted after 17 years. This tax has replaced many indirect taxes in India since its beginning. Acceptance of the Goods and Services Tax Act in the Indian Parliament was on 29th March 2017. Eventually, the GST Act came into existence on 1st July 2017.
This tax is imposed on goods and services available in India. After the GST, the tax is imposed at every stage of the supply chain. In interstate sales or exports, the Central Government imposes the Central GST and State GST.
Different GST Tax Heads
There are four heads under which Goods and Services Tax (GST) is calculated in India. These heads are as follows:
- Central GST (CGST) – This tax on goods and services is calculated and is collected by the Central Government.
- State GST (SGST) – The State Government collects the Goods and Services Tax under SGST.
- Union Territory GST (UTGST) – The Union Territory Government collects this GST from the taxpayers.
- Integrated GST (IGST) – This tax is paid for exports and interstate transfer of goods and services. The Central Government collects it.
GST Calculation Formula
To calculate the GST, one can use the following formula:
- To Add The GST Amount To The Base Amount of Goods or Services:
Add The Goods and Services Amount, where
GST Amount = (Original Price * GST%) /100
Net Cost = Original Price + GST Amount
- To Remove GST Amount From The Base Amount of Goods or Services:
Remove The Goods and Services Amount, where
GST Amount = Original Price – (Original Price * (100/ (100 + GST%)))
Net Amount = Original Price – GST Amount
What is a GST Calculator?
A GST Calculator is a tool that makes the calculator easy and simple. All a taxpayer needs to do is enter the details, and the calculator will calculate the GST Amount. The GST calculator can calculate the tax amount payable in a month or a quarter of the year.
How to Calculate GST Using GST Calculator?
GST calculator is available online and makes the calculation work a lot easier. Taxpayers with differential GST rates can use the GST Calculator online with ease.
Here is how one can calculate using the calculator:
Step 1: The taxpayer has to select either GST Exclusive or GST Inclusive as per their requirements.
Step 2: Enter the original cost of the Goods or Services taken into consideration for calculating the GST amount.
Step 3: Select the GST interest rate from the given drop-down menu in the next step.
Step 4: Lastly, click on the “Calculate” button of the GST Calculator.
The result displayed on the screen will be the total GST Amount and pre-and post-GST Amount as per the taxpayer’s original needs.
Inclusive GST Amount
The inclusive GST amount refers to the total amount after including the applicable rate of GST with the original price of the goods and services. In such cases, an extra charge is not subject to the taxpayer's payment, as the GST amount is already included in the total cost.
Exclusive GST Amount
The exclusive GST amount refers to the total amount after excluding the applicable rate of GST on the goods and services. Then the amount is subtracted from the GST inclusive amount. The taxpayer will have to pay the GST amount on the goods and services and their base price.
Advantages of GST Calculator
Using the GST Calculator online, the taxpayers can easily compute the gross and net costs of the goods and services and the GST percentage applicable to them. The use of the GST Calculator makes IGST Calculation accurate and bifurcates the rate applicable in Central GST (CGST) and State GST (SGST). Additionally, using a calculator makes GST Amount calculation faster and reduces the chances of any errors in the total goods and services cost calculation.
GST Percentage Rate in India
GST rates applicable on goods and services are as follows:
- 0% for necessity goods, such as wheat, milk, etc.
- 0.25% applicable on rough diamonds.
- 3% rate applicable on silver, gold, etc.
- 5%, 12%, 18%, 28% – Most goods and services fall under these applicable GST rates. The 18% rate applies to most items, while the 28% rate is applicable for items like cars, cement, tobacco, etc. A Cess is also applicable to some handful of goods and services like pan masala, car, tobacco, etc.
- Some goods and services on which the applicable GST rate is NIL or exempted from the list of applicable GST items.
Calculation Using GST Calculator in Reverse Charge
GST is also applicable in the case of reverse charges. The GST calculator method in reverse charge will be the same. For example, a taxpayer has purchased goods worth ₹ 10,000 from a person and has to pay a reverse charge at the 18% rate. The reverse charge applicable on the purchased goods will be ₹ 1,800 (10,000×18%). If CGST and SGST are applicable on the goods, the taxpayer will have to pay ₹ 900 each and the reverse charge of ₹ 1,800.
Understanding GST Calculation with Example
A person bought a good for ₹ 2,36,000. Here is the bifurcation of the GST amount and original cost of the good using a GST Calculator online method:
|GST Rate (%) Applicable||Amount (In ₹)|
|Original Price of Goods||₹ 2,00,000|
|GST Rate||18%||₹ 36,000|
|Cost of Sold Goods||₹ 2,36,000|
GST Calculation for Manufacturers
The GST Calculation mechanism the goods purchased at ₹ 2,36,000 by the taxpayer will work in the following way for the manufacturer:
|GST Rate (%) Applicable||Pre-GST Amount (In ₹)||Post-GST Amount (In ₹)|
|Product’s Cost||₹ 20,000||₹ 20,000|
|Excise Duty Applicable||12%||₹ 2,400||NIL|
|Profit Amount||10%||₹ 2,000||₹ 2,000|
|Total Cost||₹ 24,400||₹ 22,000|
|Final Invoice Delivered To The Wholesaler||₹ 27,450||₹ 24,640|
GST Calculation for Retailers & Wholesalers
For the retailers and wholesalers, the calculation will be in the following way:
|GST Rate (%) Applicable||Pre-GST Amount (In ₹)||Post-GST Amount (In ₹)|
|Product’s Cost||₹ 27,450||₹ 24,640|
|Profit Amount||10%||₹ 2,750||₹ 2,464|
|Total Cost||₹ 30,200||₹ 27,104|
|Final Invoice Delivered To The Customer||₹ 33,975||₹ 30,060|
You May Also Read:
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GST E-Way Bill: GST E-way Bill.
GST State Code: GST State Code List and Jurisdiction
GST Compensation Explained - Learn All About the GST Compensation and Its Significance
GSTR 2A: GSTR 2A - How to fill and Download
Goods Transport Agency: GTA (Goods Transportation Agency ) Under GST
GSTR-6: Learn filing GSTR 6, ISD, Eligibility Criteria, and Key Features
Frequently Asked Questions (FAQ's)
How to calculate with the help of a GST Calculator?
Open a GST Calculator online, select whether the amount is inclusive or exclusive of the GST amount, enter the amount and rate, and click on calculate to get the accurate amount.
Is GST calculated on the total bill amount?
The GST Amount is levied on the addition of value in each stage of the good or service. The taxpayer has to pay the amount applied at the last stage of the item or service, i.e., dealer or supplier at the last of the supply chain.
Is the GST amount calculated after the discount?
The discount applied will be deducted at the end of the transaction, and the GST amount will be calculated on the total price of the item or service.
Can I find a GST calculator online?
Yes, the GST Calculator online area is available to calculate the amount accurately and easily by simply entering the details asked and clicking on calculate to get the results.
How much CGST and SGST are applicable under Integrated GST?
In the case of integrated GST calculation, the rate applicable is 18% which comprises 9% of Central GST (CGST) and 9% State GST (SGST)
How to calculate the integrated GST?
The Integrated Goods and Services Tax (GST) includes the Central GST (CGST) and State GST (SGST), i.e., SGST + CGST = Integrated GST.