GST Calculator
The easiest way for businesses to calculate their GST
GST - the Goods and Services Tax, is an indirect tax in India.
With its origin, it has replaced many other indirect taxes in India such as VAT, CST, central excise duty, service tax and so on. GST is levied on the sale of goods and services in the country. GST is collected at the point of consumption and not at the point of origin unlike other taxes.GST is a comprehensive, multi-stage, destination-based tax. This is levied on every value addition. The law governing GST was passed in the parliament on the 29th of March 2017 and it was implemented across the country on the 1st of July 2017.
GST majorly consists of the following tax slabs:
0%
3%
5%
12%
18%
28%
Certain products and services like petroleum products, high-speed diesel, motor spirit, natural gas, aviation turbine fuel, and alcoholic liquor for human consumption do not come under GST. These products and services are taxed by the individual State Governments, as per their tax policies.
What are different tax components under GST?
What are different tax components under GST?
CGST
Central Goods and Services Tax (CGST) - This is applicable to the transactions done within state boundaries or at the intrastate level.
SGST
State Goods and Services Tax (SGST) - Very much like CGST, this tax is also applicable to the transactions done within state boundaries or at the intrastate level
IGST
This tax component is applicable to the transactions done between different states or at the interstate level
CGST
Central Goods and Services Tax (CGST) - This is applicable to the transactions done within state boundaries or at the intrastate level.
SGST
State Goods and Services Tax (SGST) - Very much like CGST, this tax is also applicable to the transactions done within state boundaries or at the intrastate level
IGST
This tax component is applicable to the transactions done between different states or at the interstate level
Any sale or supply of goods or services within the state will be liable to CGST & SGST . That
means the revenue collected from such sales are shared equally between the centre and the state.
Before the introduction of GST, such transactions were subjected to VAT, central excise or service
tax.
Similarly, IGST collected from any interstate transaction is collected by the Centre
and then shared on the basis of destination of goods.
What is GST calculator?
GST calculator is an online ready-to-use calculator to compute the payable GST payable for a month or quarter depending on the amount. This calculator is apt for use by users all types of trade - buyers, sellers etc.
Advantages of GST Calculator
The simplified GST calculator helps you determine the price for gross or net product depending on the amount and gives you a split of percentage-based GST rates. It helps give the division of the rate between CGST and SGST or calculate IGST accurately.
Formulae for GST calculation
Any business, manufacturer, wholesaler and retailer can calculate GST easily with the help of the following formula:
Where GST is excluded:
GST Amount =
(Value of supply x GST%)/100
Price to be charged =
Value of supply + GST Amount
Where GST is included in the value of supply:
GST Amount =
Value of supply – [Value of supply x {100/(100+GST%)}]
Examples for understanding GST calculation
Examples for understanding GST calculation
A manufacturer produces goods (10% tax rate applicable) worth ₹1,000 and sends it to a warehouse for labelling & packaging. The warehouse adds ₹250 to the existing value of the goods. Then, sell it to the retailer. The retailer adds its advertisement cost of ₹300.
Here’s how the value of the goods & tax on it changes, and the final effect on the price under GST.
|
Particulars
|
Cost
|
Tax @10%
|
Tax liability to be deposited to the government
|
Invoice Total
|
|---|---|---|---|---|
| Manufacturer | ₹1,000 | ₹100 | ₹100 | ₹1,100 |
| Warehouse adds ₹250 for labelling & packaging | ₹1,250 | ₹125 | ₹25 | ₹1,375 |
| Advertisement cost of ₹300 added by the retailer | ₹1,550 | ₹155 | ₹30 | ₹1,705 |
| Total | ₹1,550 | ₹1,705 |
| Particulars |
Cost
|
Tax @10% | Tax liability to be deposited to the government | Invoice Total |
|---|---|---|---|---|
| Manufacturer | ₹1,000 | ₹100 | ₹100 | ₹1,100 |
| Warehouse adds ₹250 for labelling & packaging | ₹1,250 | ₹125 | ₹25 | ₹1,375 |
| Advertisement cost of ₹300 added by the retailer | ₹1,150 | ₹155 | ₹30 | ₹1,705 |
| Total | ₹1,550 | ₹1,705 |