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GST Calculator

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₹100 ₹10,00,000
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Total GST ₹ 0

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What is GST in India?

GST or Goods and Services Tax is a unified system of indirect taxation that was introduced in India on July 1, 2017. The tax was introduced to streamline the erstwhile fragmented system of indirect taxation in the country. It replaced several indirect taxes previously levied by the central and state governments. 

 

The primary objectives of this indirect tax regime include creating a single, unified tax structure, increasing transparency and reducing the burden of cascading taxes. Under the GST tax system, goods and services are taxed at five different slabs — 0%, 5%, 12%, 18% and 28%. 

 

The system includes three types of GST — Central GST (CGST), which goes to the central government; State GST (SGST), which goes to the state governments; and Integrated GST (IGST), which applies to inter-state transactions and imports and is shared between the central and state governments.

 

What is a GST Calculator? 

A GST tax calculator is a readymade online tax planning tool that helps you compute the total amount of GST on the value of goods or services in a sale. You can also use the GST calculator to find the tax amount on GST-inclusive and GST-exclusive transactions. 

 

It is useful for both buyers as well as suppliers or service providers. If you are buying goods or services, you can use the GST calculator to find out how much tax you need to pay on the purchase. Alternatively, if you are the seller of goods or the service provider, the GST tax calculator can help you estimate the amount of GST you need to charge on the transaction. 

How to Calculate GST Using an Online GST Calculator? 

Using an online GST calculator is fairly straightforward. Here is a step-by-step guide to making the most of this online tool. 

 

  • Step 1: Choose whether you want to use the GST calculator to find the tax amount for a GST-inclusive or GST-exclusive transaction. 

  • Step 2: Enter the total transaction amount. This could be the value of one transaction or the total turnover for a month or quarter. 

  • Step 3: Enter the GST rate for the transaction(s) concerned. 

  • Step 4: Submit these details online. 

 

With this information, the GST calculator evaluates the total amount of Goods and Services Tax and the post-GST transaction amount. 

What is the GST Formula? 

The GST calculator formula depends on whether the transaction concerned is GST-inclusive or GST-exclusive. Here is a closer look at the formula a GST calculator uses in each of these cases.

 

  • GST-Exclusive Transaction

If the amount you have is exclusive of GST, you can calculate the tax amount using the following formula. 

GST Amount = Transaction Amount x (GST Rate ÷ 100)

 

  • GST-Inclusive Transaction

If a transaction value is inclusive of GST, the GST calculator formula in this case will be as shown below.

GST Amount = Transaction Amount x [GST Rate ÷ (100 + GST Rate)]

What are the Benefits of a GST Calculator?

An online GST calculator offers many advantages to both buyers and sellers/suppliers. Here are the top benefits of this tax planning tool. 

 

  • Quick GST Calculation: With a GST calculator, you can swiftly compute the exact tax amount based on the input values. This eliminates time-consuming and error-prone manual calculations. 

  • Simplified Tax Planning: Since GST calculators help you find the tax amount in both GST-inclusive and GST-exclusive transactions, tax planning becomes easier for both buyers and sellers. 

  • User-Friendly Interface: The interface of the average online GST calculator is simple and intuitive, so anyone can use this tool, even without any prior knowledge of tax calculations or the GST regime. 

  • Improves Ease of GST Compliance: Using a GST calculator also ensures compliance with GST laws. This is because it provides an accurate estimate of the amount of GST to be paid or charged in a transaction. 

How to Calculate GST Under the Reverse Charge Mechanism?

Under the reverse charge mechanism of the GST regime, the onus of paying the tax lies with the buyer or the service recipient rather than the seller or service provider. The method for calculating GST under the reverse charge mechanism is the same as the process under the regular charge mechanism. 

 

Here is what you need to do to find the GST amount. 

  • Step 1: Identify if a transaction is covered under the reverse charge mechanism. 

  • Step 2: Determine the taxable transaction value of the goods or services received. 

  • Step 3: Apply the relevant rate of GST on the transaction value to find the GST amount. 

 

You can always use an online GST calculator to find the tax amount even if the reverse charge provision applies to a transaction. 

Examples of GST Calculation

To better understand how the GST calculator formula works, let us discuss a couple of examples, one for a GST-exclusive transaction and the other for a GST-inclusive transaction. 

 

  • Example 1: GST-Exclusive Transaction

For a GST-exclusive transaction of Rs. 10,000 that is taxed at 18%, the GST amount will be:

= Rs. 10,000 x 18/100

= Rs. 1800 

 

  • Example 2: GST-Inclusive Transaction

For a GST-inclusive transaction of Rs. 15,000 that is taxed at 28%, the GST amount will be:

= Rs. 15,000 x [28 ÷ (100 + 28)]

= Rs. 15,000 x [28 ÷ 128]

= Rs. 3,281.25

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Frequently Asked Questions

What is the percentage of GST in India?

Answer Field

The percentage of GST depends on the goods or services being considered. It can be 0%, 5%, 12%, 18% or 28%.

How many GST slabs are there in India?

Answer Field

Currently, as of June 2024, we have five GST slabs in India, namely the 0% or nil-rated slab, 5% slab, 12% slab, 18% slab and 28% slab.

Is it mandatory to pay GST on the sale of products or services in India?

Answer Field

Yes, it is mandatory to pay GST on taxable products and services in India. However, the onus of paying the tax lies with the supplier of goods or provider of services (except in some cases, where the buyer or service recipient is liable to pay GST).

Is the rate of GST applicable the same for every state in India?

Answer Field

Yes, GST is applicable to the entire country. There are no separate tax rates that differ from one state to another.

Why was the GST regime introduced?

Answer Field

The earlier system of indirect taxation for goods and services was fragmented and had various issues like cascading effects and difficulty in compliance. To resolve these challenges, the GST regime of indirect taxation was introduced.

What happens if I do not pay GST?

Answer Field

If you are liable to pay GST and do not, you will be liable to pay a penalty that is 10% of the tax due (subject to a minimum of Rs. 10,000).

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