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Any person running a business in India — be it a product-based venture or a service-based business — may fall within the GST net in the country’s tax regime. If you are running a business Read more... in India, you need to know how much GST to pay on every sale you make. A GST calculator can help you with this. Read less
The Goods and Services Tax (GST) represents a structural shift in India’s indirect taxation system, launched on July 1, 2017. It is a comprehensive, multi-stage, destination-based tax that replaced a complex web of previous levies, such as VAT, excise duty, and service tax.
Key characteristics include:
One Nation, One Tax: It unifies the Indian market under a single tax umbrella.
Value Addition: It is levied at every stage of the supply chain where value is added.
Input Tax Credit: Businesses can claim credit for taxes paid on inputs, preventing the "cascading effect" (tax on tax).
Consumption-Based: The tax revenue goes to the state where the goods are consumed, not to the state where they are manufactured.
A GST calculator is an online tool that helps individuals and businesses quickly determine the amount of GST they owe.
The tool functions by:
Automating Math: It applies the specific GST slab rate (5%, 12%, 18%, or 28%) to the base price.
Two-Way Calculation: It can calculate "GST Exclusive" (adding tax to the base price) and "GST Inclusive" (removing tax from the total MRP).
Instant Breakdown: It automatically separates the Central Tax (CGST) and State Tax (SGST) components.
Calculating tax manually for multiple invoices can be tedious and prone to errors. This tool standardises the process using a fixed formula, ensuring compliance with tax laws.
The Formula:
$$GST \text{ Amount} = \frac{\text{Base Price} \times \text{GST Rate}}{100}$$
$$Total \text{ Invoice Value} = \text{Base Price} + \text{GST Amount}$$
For example, if the Base Price of a product is ₹25,000 and the applicable GST Rate is 18%, the equation reads:
GST Amount = (25,000 × 18) / 100 = ₹4,500
Total Invoice Value = 25,000 + 4,500 = ₹29,500
The GST structure in India is divided into four categories to ensure efficient revenue sharing between the Central and State governments.
The four distinct types are:
CGST (Central Goods and Services Tax): This is collected by the Central Government on intra-state supplies (transactions happening within the same state).
SGST (State Goods and Services Tax): This is collected by the State Government on intrastate supplies. In a standard intrastate transaction, the tax rate is split equally between CGST and SGST.
IGST (Integrated Goods and Services Tax): This is levied by the Central Government on interstate supplies (transactions between two different states) and imports. The Centre collects this amount and shares it with the destination state.
UTGST (Union Territory Goods and Services Tax): The UTGST applies to Union Territories without a legislature (such as Chandigarh or Ladakh), replacing the SGST component.
There are several benefits to using a GST calculator that simplifies your GST calculations.
Primary advantages include:
Eliminates Human Error: Manual calculations often lead to decimal discrepancies. The calculator provides precise figures instantly.
Time Efficiency: It processes complex figures immediately, saving time during billing or tax filing.
Reverse Calculation: The calculator easily separates the tax component from the MRP (inclusive amount), a task that can be mathematically tricky to perform mentally.
Compliance: It helps ensure that invoices are generated with the correct tax breakup (CGST/SGST/IGST), reducing the risk of regulatory penalties.
Cost Analysis: Businesses can quickly estimate the final procurement cost, including taxes, to improve budget management.
The Bajaj Broking GST Calculator is efficient and straightforward to use. It is designed to give you quick results with minimal input.
Follow these steps:
Enter Base Amount: Input the total price of your goods or services in the designated field.
Select Rate: Choose the appropriate GST rate applicable to your product category.
Calculate: After providing all this information, press the "Calculate" button to get the result immediately.
View Results: The calculator will provide you with the GST amount, the invoice total, and a detailed breakdown of the tax.
Reverse Calculation: If you know only the total amount (which includes GST), you can also use the tool to find the base price.
The percentage of GST depends on the goods or services being considered. It can be 0%, 5%, 12%, 18% or 28%.
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.
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).
Yes, GST is applicable to the entire country. There are no separate tax rates that differ from one state to another.
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.
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).
Yes, the GST calculator considers the total GST rates for a product or service: CGST and SGST for intra-state sales, or IGST for inter-state sales. The total GST calculated shows the full taxable amount and percentage.
GST on a product or service can be calculated only through 2 methods. For prices exclusive of GST,
GST = Transaction Amount x (GST Rate ÷ 100).
For the prices inclusive of GST,
GST = Transaction Amount ÷ (1 + (GST Rate ÷ 100)).
The amounts and tax figures included show the additional costs that will be reflected in the amounts owing.
Yes, it does, showing the pre-GST amount and the total GST amount separately. In addition, you can choose either GST-exclusive or GST-inclusive, and the calculator assumes and displays the base price and calculated GST accordingly, making it easier to understand.
The calculator itself does not compute or display input tax credit values. However, as described under the Goods and Services Tax, ITC is the method of adjusting the tax paid on purchases against the tax liability on sales in accordance with GST laws and guidelines.
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