Online calculator for the goods and services tax (GST)

A GST Calculator is a tool that aids in accurately calculating the GST amount on various goods and services. The primary objective of the tool is to display the whole worth of the products or services, including the GST component.

Describe GST.

Since July 1, 2017, an indirect tax known as the "Goods and Services Tax" has been placed on the delivery of goods and services. GST replaces all indirect taxes in India and functions as a single taxation system. VAT, Central Excise Duty, Octroi, and Entry Tax are a few of the indirect taxes that have been eliminated.

The government collects several GSTs, including:

a). State GST (SGST) is collected by the state government.

b). Central GST (CGST): It is gathered by the central government.

c). Integrated GST (IGST) is a tax that the central government collects on imports and interstate transactions.

d). Union Territory GST (UTGST): It is gathered by the Union Territory Government.

1. Describe the GST Calculator.

A GST Calculator is a tool that aids in precisely computing the GST amount on various goods and services. The primary objective of the tool is to display the whole worth of the products or services, including the GST component.

2. How significant is the GST Calculator?

There are five GST slabs in India, and if you deal in different items or services from different GST Slabs, you must establish the prices, including or omitting GST. An online GST Calculator is helpful in this situation since it makes it simple and quick to compute the GST on products and services. Additionally, calculating values becomes an enormous chore if you need to produce hundreds of invoices for items or services with varying GST slab rates.

3. What information is needed to use an online GST Calculator?

To compute GST using an online GST calculator, the taxpayer has to know the HSN/SAC code or GST rate that applies to the specific goods and services in question.

4. The GST Calculation Process

All taxpayers may now easily determine the tax that is applied at various points for different goods and services under the GST regime thanks to the unified tax system. Every taxpayer is expected to be aware of the GST rates that apply to the various categories needed to calculate GST. GST is divided into five separate brackets: 0%, 5%, 12%, 18%, and 28%.

5. Formula for Calculating GST

A taxpayer may use the following calculation to determine GST:

To add GST to the base amount,

Add GST

GST Amount = ( Original Cost * GST% ) / 100

Net Price = Original Cost + GST Amount

To remove GST from the base amount,

Remove GST

GST Amount = Original Cost – (Original Cost * (100 / (100 + GST% ) ) )

Net Price = Original Cost – GST Amount

6. Example of GST Calculation

A). The net price (NP) is computed as follows: 2,000+ (2,000(18/100)) = 2,000+180 = Rs. 2,180 for goods or services sold at Rupees 2.000 with an applicable GST rate of 18%.

B). If an item is sold for Rs. 2,000 and the relevant GST rate is Rs. 12%, the net price of the thing will be Rs. 2,000 + Rs. 12% of Rs. 2,000, which equals Rs. 2,000 + Rs. 240, or Rs. 2,240.

7. Calculating taxes under the GST

Every producer and dealer is eligible for an input tax credit under the GST system. An illustration of the difference between the amount of tax payable under the previous tax system and the GST system is shown below:

8. GST's Effect on Product Pricing

The Central GST (CGST) and State GST would be indirect taxes levied by the Central and State governments, respectively (SGST). In the case of intra-state transactions, the seller will collect SGST and CGST from the buyer, which is paid to the Central and State governments. An illustration of how the GST has affected product pricing is shown below:

9. Calculating Tax on Sales Between States

The interstate supply of goods and services would be subject to integrated GST (IGST) levies by the Central Government. In the case of interstate transactions, the IGST is passed to the importing state. For the transfer of products between two nations, CST was levied in addition to VAT and excise duty under the previous tax structure. The sole tax collected under the GST system is known as the IGST and is only applied to goods traveling across state lines. Here is an illustration to help you understand the IGST system:

As seen by the aforementioned example, it is evident that manufacturers, wholesalers, and retailers would experience lower costs under the GST system, regardless of whether their sales are interstate or intrastate.

10. GST Calculators' Advantages

Some of the main advantages of utilizing a GST calculator are highlighted below:

• Users are able to compute the net or gross product price using GST rates.
• It enables users to distinguish between SGST, CGST, and IGST and precisely compute each tax.
• It saves time because the results are immediate.
• It reduces the possibility of human mistake when figuring out the price of goods and services.
• It is easy to use and facilitates hassle-free GST calculation.

11. calculating GST

We'll look at a number of the accessible online GST calculators now that you've read about how GST computation works.

1. Bharat Finserv:

You may make your online GST payments with the aid of Bajaj Finserv's user-friendly GST calculator.

• To begin, input the net price of the products or services and the applicable GST slab into the calculator. The possible GST slabs are 5%, 12%, 18%, and 28%.
• Once you have determined the gross price of the goods or services, CGST, IGST, and total tax, click the "Calculate" button.

2. ClearTax:

Another online GST calculator is available at ClearTax, which may be used to estimate your GST before making an online GST payment. To calculate your taxes, enter the information below:

• the total cost of the products and services.
• the related goods and services GST rate. GST rates in slabs might be 5%, 18%, or 28%.

The ClearTax GST calculator will show the gross price of the products or services and the tax amount for CGST, SGST, and IGST when you click the calculate button.

Conclusion

The GST calculator accepts an input of a sum (gross or net), the GST tax rate, and an option to add or subtract the GST from the inputted amount. The Indian government anticipates implementing this new tax in April 2016. The three types of GST are classified as Integrated GST, State GST, and Central GST (IGST).

Deskera Books makes it simple to compute GST and create reports for filing. Join a free trial today to learn how GST is calculated.