To budgeting, invoicing, and other processes, businesses frequently need to determine the tax due on the goods or services they provide. Using a traditional calculator to do arithmetic operations can be challenging and time-consuming. They thus require an online GST calculator to precisely determine their tax obligation.
We’ll discover the advantages of using an online GST calculator in India for businesses in this blog post. Let’s first review the fundamentals of India’s Goods and Services Tax.
The term “Goods & Services Tax” (GST) refers to an indirect tax imposed on the supply of goods and services in India. To replace the many indirect taxes imposed in the nation, the GST was adopted in 2017. The central excise duty, value-added tax, entrance tax, and octroi were examples of these indirect taxes.
Different Types of Taxes Collected Under GST
The many forms of GST that the government is currently collecting are listed below:
- The State Government is responsible for collecting state GST (SGST).
- Integrated GST (IGST) is collected by the federal government on interstate imports and exports and is then disbursed to the states.
- Central GST (CGST) tax is collected by the federal government. Given that it’s in GST, this is interstate.
- Union Territory GST (UTGST) is paid by the Union Territory government
Formulas for Manually Calculating GST
The following method may be used to quickly compute GST for any type of business, including manufacturers, wholesalers, retailers, and others.
When the given value is exclusive of GST
GST Amount = (Value of supply x GST%)/100
Price to be charged = Value of supply + GST Amount
When the given value is inclusive of GST
GST Amount = Value of supply – [Value of supply x {100/(100+GST%)}]
How to Calculate GST Using GST Calculator
It is advised to utilize an online GST calculator in India to determine the amount of GST due in India. These calculators require little user involvement because the GST computation methodology is pre-built into them.
Using a trustworthy Indian GST Calculator, you may determine how much GST you must pay by following the general instructions below:
- Choose if you want to calculate GST inclusively or exclusively.
- Then, enter the amount from the original invoice together with the GST rate (or goods/services, if applicable).
- To view the results, click Calculate (or a CTA that is comparable).
Comprehending GST Calculation Through Examples
A simple GST computation is shown below:
| Particulars | Amount (in ₹) |
| Invoice value | 200,000 |
| GST 12% | 24,000 |
| Price to be charged after GST | 224,000 |
GST Calculations for Manufacturer
| Particulars | Amount (in ₹) |
| Cost of the Product | 100,000 |
| Profit | 10,000 |
| Total | 1,10,000 |
| CGST @ 6% | 6,600 |
| SGST @ 6% | 6,600 |
| Final invoice to the wholesaler | 1,23,200 |
GST Calculations for Wholesaler
| Particulars | Amount (in ₹) |
| Cost of the Product | 1,23,200 |
| Profit @ 10% | 12,320 |
| Total | 1,35,520 |
| CGST @ 6% (Credit on CGST paid above 6600) | 8,132 |
| SGST @ 6% (Credit on SGST paid above 6600) | 8,132 |
| Final invoice to the consumer | 1,51,784 |
Manufacturers, distributors, and retailers are subject to lower tax obligations for products falling under the GST framework. As a result, they can sell their items for a profit and have an ideal profit margin.
GST Calculation with Example
The following is a basic example of how GST is calculated:
The appropriate GST rate is 5% if a logistics business in Karnataka offers road transport services to a customer in Maharashtra. This is an interstate transaction, thus the IGST will be in effect.
Given that the invoice amount is ₹10,000, the amount of GST that must be paid is as follows:
Total invoice amount = Value of Services + GST = 10,000 + 500 = ₹10,500
Since this transaction is taking place between two distinct states, the central government would be the one to collect it.
GST calculator formula
We demonstrated how GST is computed in the case above. You may also use these GST formulas to determine the amount of GST that applies at any moment.
The GST formula is (GST rate%) x (goods/services value).
We’ll use courier services as an example of logistics services, where 18% GST is applied. We would also shift the intra-state transaction location to Karnataka. This implies that SGST and CGST will be applied here rather than IGST.
Total GST payable = CGST + SGST = ₹900 + ₹900 = ₹1,800
Total invoice amount = Original invoice amount + Total GST = ₹10,000 + ₹1,800 = ₹11,800
As a result, the state of Karnataka will collect ₹900 of the total ₹1,800 in GST, while the federal government will take ₹900.
Note: The same formula used for GST may also be used to calculate UTGST.
Wrapping It Up
India’s tax structure has been drastically changed by the GST. All firms, regardless of size or location of operation, are now subject to the same taxes across the country. Use the online GST calculator in India to find out how much tax you are paying on the items and services you purchase.
FAQs
What is the gold GST amount?
In India, GST is applied to gold as 3% of the entire value and 5% of the manufacturing costs of gold jewelry.
Which HSN code form is complete?
“Harmonised System of Nomenclature” is the full form of the HSN code. A standard code system consisting of six digits is used to classify over 5,000 items both in India and globally.
What is RCM in transportation?
The procedure by which the recipient of the goods is required to pay tax and shipping costs is known as the Reverse Charge Mechanism or RCM.
Who is qualified for the GST Input Tax Credit?
A person who has registered under the GST Act and paid the applicable tax is qualified to claim the input tax credit, as per the GST Act.
What is the GST registration threshold limit?
A business must register under GST if it deals in commodities and has an annual turnover of at least Rs. 40,000,00, or if it provides services and has an annual turnover of Rs. 20,000,00 or more.
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