GST Calculator India

  • Manufacturer
  • Trader/Wholesaler
  • Buyer
  • Production Cost
    Profit Percentage
    GST Percentage
    5%
    12%
    18%
    28%
    OR



    Production Cost

    ₹0.00

    Profit Amount

    ₹0.00

    Total Tax

    ₹0.00

    CGST: ₹0.00
    SGST: ₹0.00
    Selling Price

    ₹0.00

  • Purchase Price
    Profit Percentage
    GST Percentage
    5%
    12%
    18%
    28%
    OR



    Purchase Price

    ₹0.00

    Profit Amount

    ₹0.00

    Total Tax

    ₹0.00

    CGST: ₹0.00
    SGST: ₹0.00
    Selling Price

    ₹0.00

  • Net Price
    GST Percentage
    5%
    12%
    18%
    28%
    OR



    Gross Price

    ₹0.00

    CGST Amount

    ₹0.00

    SGST Amount

    ₹0.00

    Total Tax

    ₹0.00

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Wondering what a GST calculator is and how it can be beneficial for assessing your business finances? Find all your answers here.

The Goods and Services Tax (GST) was introduced to simplify India's indirect taxes. GST is a complex calculation because there are a variety of tax slabs, rates, and exemptions to consider.

This article will explore the significance of the GST tax Calculator and how it can help companies and individuals determine their GST liabilities more accurately.

What Is Goods and Service Tax (GST)?

GST is an indirect tax in India levied on the supply of various commodities and services. Indirect taxes such as VAT (value-added tax), central excise duty, CST (central sales tax), and service tax have been replaced by GST. This comprehensive tax system applies to a wide range of transactions within the country, including both goods and services.

Instead of collecting tax at the point of origin, GST is collected at the point of consumption. GST is a multi-stage tax that taxes value added at various stages of production and distribution. In July 2017, the GST law was implemented nationwide based on legislation passed on March 29, 2017.

Benefits of GST

Before talking about the GST calculator, let us first see the benefits of GST:

Transparency and Centralized Process

GST has brought about a new era of transparency within the tax structure in India. The online tax filing mechanism and centralized registration make it easy for small businesses to file taxes.

Relaxation in Threshold Limits

Small businesses will also benefit from the relaxation of the threshold limit on aggregate turnover for service providers. The new rule exempts companies with turnovers under Rs. 20 lakhs and Rs. 10 lakhs for companies in North Eastern states from paying taxes, easing the burden of taxation.

Composition Schemes

Taxpayers have benefited greatly from composition schemes. Companies with yearly revenue of up to Rs. 75 lakhs can benefit from these schemes by paying only 1% tax. As a result of this simplified taxation approach, businesses have found it easier to comply with tax laws.

Positive Economic Growth

India's GDP is expected to benefit significantly from GST. The tax system stimulates export and manufacturing activities by fostering increased competition among manufacturers and sellers to deliver high-quality goods. Furthermore, this growth stimulates employment opportunities, benefitting people and youth.

Eliminating Double Taxation

GST was implemented to eliminate double taxation on commercial goods and support the reduction of production costs for companies. As a result, it creates healthy competition between exporters and leads to market innovation.

Regulating Unorganized Sectors

The GST regulates unorganized sectors, ensuring businesses get fair and equal play in the market. Moreover, this tax system plays a vital role in controlling corruption. After the implementation of GST, sales without receipts have significantly decreased.

Reduced Taxes

In addition to reducing taxes on some goods by 2%, GST has also reduced taxes on some services by 7.5%. Further, logistics have become more efficient by eliminating border taxes and clearing discrepancies at checkpoints. As a result, the supply chain becomes more cost-saving and efficient.

What Are GST Rates in India?

Various slabs of GST rates are applied to different goods and services in India. They are as follows:

GST Slab of 5%

Popular Goods: Some essential goods, such as processed food, transportation, and small restaurants, are subject to the 5% GST slab. These items include oil, sugar, frozen vegetables, plastic water, fertilizers, tea, spices, ayurvedic medicines, coffee, coal, nuts, lifeboats, life-saving drugs, etc.


Popular Services: These services include air travel, railway transportation, non-AC and AC restaurants, accommodation under 7,500 rupees, takeaway food, newspaper printing, and pilgrim flights.

GST Slab of 12%

Popular Goods: These taxes apply to processed foods, daily-use products, smartphones, electronics, apparel, accessories, furniture, restaurants, etc. The list also includes frozen meat, pouches, purses, handbags, nuts, fruits, juices, butter, cheese, and ghee.


Popular Services: The most popular services under this slab are movie tickets under Rs. 100, building construction, and business-class flight tickets.

GST Slab of 18%

Popular Goods: There are many goods subject to this moderate tax rate. Several items fall under this slab, including electronic appliances such as washing machines, and water heaters, food items such as ice cream, pasta, and pizza, suitcase, binoculars, briefcase, shaving kit, television screen, after-shave, furniture, lithium-ion batteries, stationery, camera, monitors, video games, etc.


Popular Services: The services under this slab are telecom services, IT services, restaurants located within hotels with charges exceeding Rs. 7,500, hotel bills less than Rs. 7,500, and movie tickets priced above Rs. 100.

GST Slab of 28%

Popular Goods: Aerated drinks, luxury cars, tobacco products, and high-end cars fall under this highest tier of the GST slab. Other goods include sunscreen, cigarettes, durable consumer products, pan masala, cement, weighing machines, etc.


Popular Services: Some services under this slab are horse racing, movies, casino gambling, drink/food/hotel stays at Five Star hotels, with bills above Rs. 7500.

Goods and Services Exempted From GST

Fuels and alcoholic beverages for human consumption and petroleum products, such as high-speed diesel, motor spirit, natural gas, and aviation turbine fuel, are excluded from GST.

Instead, individual state governments determine the taxation of these items based on their respective tax policies.

Popular Goods: Some products that are exempted from GST are raw materials, eggs, flour, besan, bread, sanitary napkins, salt, natural honey, sindoor, curd, deities made of stone, oats, kajal, bangles, newspapers, handloom, color books, rakhis without precious metals.

Popular Services: Low-cost hotels and lodges, IMM (International Monetary Market) textbooks, and savings account charges are some services exempted from GST.

Special GST Rates in India

Over 1300 goods and 500 services have been categorized into four tax slabs in India under the GST regime: 5%, 12%, 18%, and 28%. There are also specific GST rates for certain categories:


  • Gold: The tax rate on gold is set at 3% while making charges for gold jewelry attracts a 5% GST rate. Jewelers can avail of input tax credit (ITC) for making charges, but the final bill will only have 3% GST applicable.
  • Rough Precious and Semi-Precious Stones: A special GST rate of 0.25% is imposed on rough precious and semi-precious stones.
  • Real Estate: In real estate, GST is levied only on under-construction properties. Affordable house properties attract a 1% GST rate, non-affordable house properties have a 5% GST rate, and commercial properties are subject to a 12% GST rate. However, when purchasing a ready-to-move-in property, no GST is levied.

These specific GST rates cater to these categories' unique nature and considerations, ensuring a comprehensive and fair taxation system.

Impact of GST on Product Pricing

It is undeniable that the GST in India has had a positive effect on the country. The Indian economy has benefited significantly from the shift from the previous complicated indirect tax system to the GST framework.

Before, service tax and VAT were paid separately by individuals and businesses. With GST, a single tax is now imposed with a streamlined approach.

Here is a table showing how GST affects product pricing:

VAT (Old Tax System) The GST System
An item sold from Udaipur to Jaipur costs Rs.10,000 An item sold from Udaipur to Jaipur costs Rs.10,000
12% VAT = Rs.1200 (CGST at 6% = Rs.600) + (SGST at 6% = Rs.600)
An item sold from Bangalore to Jaipur costs Rs.11,200 An item sold from Bangalore to Jaipur costs Rs.11,200
Profit = Rs.10,000 Profit = Rs.10,000
Selling Price = Rs.21,200 Selling Price = Rs.21,200
The CST at 12% = Rs.2544 The IGST at 12% = Rs.2544 But 2,544-(600+600, i.e., SGST and CGST)=1344
Final product cost 21,200 + 2544 = Rs. 23,744 Final product cost 21,200 + 2544 (-1,200)= Rs. 22,544

Under the Old Tax system, we cannot claim the tax paid on sales within the state against the tax paid on sales outside the state. GST allows the tax paid within a state to be offset against the tax paid outside.

Note: The utilization of Central Goods and Services Tax (CGST) credit is not permissible against State Goods and Services Tax (SGST) and vice versa. However, both CGST and SGST credits can be availed for offsetting IGST liabilities.

Formula to Calculate GST in India

Here is the GST calculation formula to calculate GST in India:

Formula to calculate GST amount:
GST Amount = ( Original Cost * GST% ) / 100
Net Price = Original Cost + GST Amount

Example:-
Original cost = 100, GST% = 12
(100*12/100) = 12 (GST amount)
(100+12) = 112 (Net price)

Difference Between GST and Old Tax Structure

Here is the difference between GST and the old tax structure:

Point of Difference GST VAT/CST (Old Tax structure)
Basis of levy GST is a tax system that operates on a destination-based principle, wherein it is imposed on the value of goods and services supplied. VAT is applied only to the sale value of goods at their manufacture or sale location.
Structure The GST system has a uniform tax rate applied nationwide for all commodities and services, except for motor spirit, natural gas, petroleum, and high-speed diesel. The old taxation system had varying tax rates enforced by each state, leading to complexity in tax regulations.
State Laws & Rules State GST is imposed by individual states, while the central government imposes Central GST. Integrated GST is applied to the inter-state supply of goods and services. In Union Territories, UGST (Union Territory Goods and Service Tax) is charged. Every state followed its own rules.
Registration A Permanent Account Number (PAN) is required for uniform e-registration. The registration process was decentralized under the state and national governments.
Tax Collection Both state and central governments benefit from the tax process. The tax amount was collected by the state where the sale transaction occurred.
Filing of Return Each state has common dates for filing taxes and collecting returns. Under the previous tax system, separate annexure returns had to be prepared and filed for each state individually.
Transportation Rules E-way bills are required to move commodities across states. Since each state had different rates and regulations, several forms had to be filled out.
Cross set-off of levy Taxes from the state and the central government cannot be set off. Excise tax and service tax can be set off.
Threshold limit Under the GST council's recommendations, the GST range is between Rs.10 to 20 lakh. In the previous tax system, the limit for central excise was Rs.1.5 crore. VAT was between Rs. 5 lakh to Rs. 20 lakh. And the Service tax threshold was Rs.10 lakh.

What Is the GST Calculator?

GST calculator is a convenient tool designed to assist accountants in accurately determining the payable GST amount within a specified timeframe. A user-friendly, easy GST calculator is invaluable for buyers, sellers, professionals, traders, and small business owners who must collect or remit GST taxes. With the GST calculator online, you can effortlessly perform all the necessary calculations to compute GST.

Benefits of GST Calculator

The GST-inclusive calculator enables you to clearly understand how GST is applied to a price or product. It aids in calculating the gross sale value and provides a breakdown of GST tax rates based on percentages. Incorporating it into an invoice lets you clearly display the distinct divisions of CGST, SGST, and IGST. Using this tool, you can not only easily calculate GST, but it also streamlines the invoicing process for business owners.

How to Calculate GST Using Online GST Calculator?

You can calculate GST online for any product or service by following these simple steps:

Step 1: Input the amount and profit percentage.
Step 2: Select the relevant GST rate from the options provided.

GST Calculation Made Easy With TranZact

Knowing all the components of GST and how an online GST calculator works can help small businesses streamline their invoicing process. In addition, TranZact helps buyers, sellers, professionals, traders, and small business owners streamline their GST calculator effort and compute GST amounts to incorporate them into invoices effortlessly.

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FAQs

  • Who can use the GST calculator?

    The GST-inclusive calculator is useful for anyone involved in a buy or sell transaction. It helps determine the breakdown between the sale price and the GST tax. Manufacturers, sellers, and other parties can utilize this calculator to clarify their GST liabilities.

  • How can I calculate GST online?

    A modern online calculator such as TranZact's GST calculator can perform GST calculations automatically. You simply need to determine the applicable GST rate and taxable value; the result will be the GST amount.

  • How to calculate GST in case of reverse charge?

    In most cases, the seller collects GST from the buyer. However, there are instances where the buyer is responsible for collecting GST. It is known as the Reverse Charge Mechanism (RCM). A business can utilize the RCM approach to determine its small business's GST tax liabilities in case of a reverse charge.

  • What are the 3 types of GST?

    There are three types of GST: SGST (State Goods and Services Tax), CGST (Central Goods and Services Tax), and IGST (Integrated Goods and Services Tax). The central government collects CGST, the state government collects SGST, and both apply to intrastate transactions. On the other hand, IGST is charged and distributed between the central and state governments and imposed on inter-state transactions.

  • How can manufacturers use the GST calculator?

    Manufacturers can calculate the GST liability for their small businesses using the GST formulas provided below. Utilizing an online GST-inclusive calculator is highly recommended for a quicker and easier way to obtain detailed information on GST tax liabilities.<br><br> <ul> When GST is excluded from the value of supply: <li>GST amount = (value of supply * GST%) / 100</li> <li>Price to be charged = value of supply + GST amount</li> </ul> <ul> When GST is included in the value of supply: <li>GST amount = value of supply - [value of supply * {100 / (100 + GST%)}]</li> </ul>

  • How can buyers use the GST calculator?

    GST calculator lets buyers determine the taxes associated with their purchase orders. First, the user needs to input the amount paid and select the tax slab corresponding to the product or service. Based on this and as per government regulations, the calculator provides detailed information about the GST involved in the transaction. Utilizing this convenient tool ensures transparency and clarity in understanding GST implications.

  • How to calculate GST on MRP?

    You can employ the reverse charge calculation method to estimate the GST applicable on the Maximum Retail Price (MRP) of a product.

  • How to calculate the GST refund?

    Begin by calculating the GST liability for your small business within the specified time frame, considering the payments made. Next, subtract the GST tax refund provided to the government. The resulting figure represents your total liabilities obtained by deducting the GST paid to the government from the earlier GST.

  • Is GST Calculated on profit?

    No, GST is not calculated based on profit. GST is solely imposed on the supply of goods and services or calculated on the revenue generated.

  • How to calculate GST on the total?

    Here is how you can determine the GST on the total amount:<br><br> GST Amount = (Original Cost * GST%) / 100<br> Net Price = Original Cost + GST Amount

  • How is GST charged?

    GST is levied based on the destination of goods and services. Both will be charged SGST and CGST if the supply is intrastate or within a single state's territory. However, for inter-state supplies or movement of goods between states, IGST is applied to the invoice. The applicability of GST is determined solely by the different tax slabs.

  • What is the percentage of GST in India?

    There are four GST percentages in India: 5%, 12%, 18%, and 28%.

  • What is the GST-exclusive amount?

    The GST Exclusive amount is derived by subtracting the GST amount from the GST Inclusive value of the product, resulting in the actual value of the product.

  • What is the GST-inclusive amount?

    The GST-inclusive amount refers to the product's overall value, including the product's original value and the added GST amount.

TranZact

TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.