GST Calculator

GST is a unified tax structure that was introduced by the Government of India to eliminate the complexity of the Indian tax structure. GST is levied by the Government on various products and services. All businesses or individuals who are registered under the GST must file their GST returns, which are accordingly calculated based on different GST rates.

The GST calculation is simply based on the principle of the Value Added Tax. The GST is levied on the value addition at each stage, a consumer will have to pay for the GST that is charged by the last supplier in the supply chain. Furthermore, many online GST calculators are available and offered by various third-party websites. Such online GST calculators can help ascertain the applicable cost of GST.

Calculating the GST by using a GST Calculator :

Almost every taxpayer today is well aware of the amount of tax that is charged at each point of the supply for the products and services, this has been possible with the implementation of the GST. Notably, when the GST has been calculated the taxpayers need to have complete knowledge about various GST rates that apply to different categories of products and services. Under the tax structure, which is followed in India, the different applicable GST rates are such as 5%, 12%, 18%, and 28%.

The Formula for the Calculation of GST :

Now, let us understand how the GST is calculated by the taxpayer with the help of the below-mentioned formula:

The simplified formula for GST calculation: : Add GST : GST Amount = (Original Cost x GST%)/100Net Price = Original Cost + GST Amount
GST Amount = Original Cost - [Original Cost x {100/(100+GST%)}]Net Price = Original Cost - GST Amount

For a simple and accurate calculation of the Goods and Services Tax, one must follow the steps that are mentioned below :

  • step1 :
    • In the first step, an individual must ascertain the GST rate applicable for different goods or services that a person is selling or purchasing.
  • step2 :
    • In the next step, one must ascertain the transaction value of the goods or the services over which the GST must be calculated.
  • step3 :
    • The third step includes the calculation of the GST amount by multiplying the transaction value with the applied GST rate.
  • step4 :
    • In the last step, ascertain the gross amount payable by adding the total GST amount to the transaction value.

What are the benefits of the GST Calculator? :

Apart from giving accurate and error-free calculations & results, there are also some other benefits to the GST calculator such as:

  • The GST calculator allows individuals to ascertain the net or gross product price on GST rates.
  • It also helps the taxpayers to differentiate among the SGST, CGST, and IGST and calculate each tax perfectly.
  • GST calculator saves a lot of time for users by providing instant and error-free results.
  • This calculator further reduces the risk of any kind of human error while calculating the cost of products & services.
  • Furthermore, the GST calculator is very simple to be used by anyone and assists taxpayers in a hassle-free and smooth calculation of GST for various products and services.

Now, let us understand the calculation of the GST with the help of an example : Imagine if a product is sold for Rs.2,000 and the GST rate applicable to it is 12%, then the net price of the product will be Rs.2,000 + 12% of Rs.2,000 = Rs.2,000 + Rs.240 = Rs.2,240.

Types of GST collected by the Government :

  • State GST (SGST) : The GST is collected by State Government.
  • Central GST (CGST) : GST that is collected by Central Government.
  • Integrated GST (IGST) : The GST is collected by the Central Government for inter-state transactions and imports.
  • Union Territory GST (UTGST) : Union Territory Government collects this GST.

The GST inclusive amount & the GST exclusive amount :

By GST inclusive of the amount, we mean the amount that refers to the total value of the product after including the GST amount in the original value of the product. In this case, the tax is not distinctly charged to the customer.

The GST-exclusive amount represents the basic value of the product by deducting the GST amount from the GST Inclusive value of the product.

Thus, we can say that a GST calculation tool can be very helpful for taxpayers to calculate their GST in a very time-saving manner and that too accurately. The online GST calculator which is available on various portals are very easy to use and help business in filing their GST returns on time & ahead of the deadlines. So, calculate the GST of your business with the help of a GST calculator and enjoy a seamless GST calculation process.

Frequently Asked Questions

  • How a GST calculator works?
    The GST calculator works by having inputs like the transaction value, applicable GST rate, and type of transaction and by calculating the GST amount payable or inclusive in the transaction.
  • Are GST calculators available online?
    Yes, the GST calculators are available online on various platforms. Also, there are many GST calculators which can be used for free by taxpayers.
  • Is using a GST calculator for GST calculation compulsory?
    No, it is not compulsory to use a GST calculator for the calculation of the GST, but the usage of the GST calculator can help the taxpayer with an accurate and timely calculation of the GST.
  • Is it ok to use a GST calculator for international transactions?
    No, the GST calculator cannot be used for international transactions. The reason behind this is that the GST is a tax that is imposed by the Indian Govt on domestic transactions.
  • Is it possible to use the GST calculator for multiple GST rates?
    Yes, the GST calculator can be easily used for multiple GST rates, and it assists you all through in the accurate calculation of the GST well in time.