GST Calculator – Guide (How to Calculate GST Online in India)

Indirectly, the provision of goods and services in India is taxed at a rate known as the Goods and Services Tax (GST). The Goods and Services Tax (GST) applies to all forms of value creation. It is calculated based on where the final product will be used.

On July 1, 2017, GST was implemented in place of most indirect taxes. For GST, there are five different tax brackets for goods and services: 0%, 5%, 12%, 18%, and 28%.

However, GST does not apply to a few categories of goods and services. These goods continue to be taxed independently by each state’s government.

Read on to learn more about the concept and calculating GST online.

Different Tax Heads Under GST

The Goods and Services Tax (GST) structure can be broken down into four distinct taxation types: 

• GST at Central Level (CGST), 
• GST at State Level (SGST), 
• GST at Union Territory  (UTGST), and 
• Integrated GST 

When the location of the supplier and the location of the recipient are in different states, the IGST is due on the supply.

When the location of the supplier and the location of the recipient are both in the same state, intrastate supplies are subject to a combined rate of 5% (half the GST rate applicable for IGST).

Instructions for using GST Online Calculator:

Follow these instructions if you plan on using a GST calculator found online:

•  Choose the total number of items you’d like to tax, using the corresponding drop-down menu. This will reveal the total amount of tax that would be due if all the items were purchased at once from the same vendor.
• Choose the items for which you want to calculate taxes. If you’re buying multiple things, you can add them all to your cart at once. Choose ‘None’ if there is no item to be added.
• When you’ve finished making your selections, click the “Calculate” button to see the results.
• GST on Services – This choice is available for services only and applies the GST rate. Click this link to get a free value-added tax calculator. You can use this to determine the applicable tax rate for any given service. The final tally is the GST due on this service. This can be paid using official government websites.
•  Select all that apply and click “Review” Once you’ve filled out the required fields and clicked the “Calculate” button, a new page will load displaying your chosen taxable items. To see how the numbers in the graphs were derived, click on the “View details” link.
• The value-added tax on notes and gold can be calculated with the help of the calculator.
• Inputs – one of the crucial sections of the online GST calculator, where you can enter the amount that needs to be paid at each location to calculate the value-added tax at multiple locations when purchasing goods (i.e., each state or each location).

GST method 

With the unified system of taxation, it is now possible for taxpayers to know the tax levied at different points for various taxable items under the GST regime. For calculating GST, the taxpayer should know the GST rate applicable to various categories. 

The GST process can be explained by a simple illustration :

If the selling price of taxable items is Rs. 2,000 and the GST rate applicable is 18%,

 then the net price calculated will be 

= 2,000+ (2,000X(18/100))

= 2,000+180 

= Rs. 2,180.

Method to calculate GST

To calculate GST, the below-given method is used :

Base amount Inclusive of GST,

Add GST

(Original Cost * GST% ) / 100 will give the GST Amount 

Next, adding the GST Amount to the original cost will give the Net amount.

Base amount exclusive of GST

Remove GST

Original Cost – (Original Cost * (100 / (100 + GST% ) ) ) will give the GST to be applied

Next, Subtracting GST from the Original cost will give the Net amount 

The benefits of an online GST calculator:

Utilizing a GST calculator allows you to reap various perks.

• To begin, this calculator does a good job of estimating the total amount of tax you’d owe if you and your partner made all of the transactions.
• You may save time and effort by using our tax calculator. This helps you determine the tax owed in a matter of seconds. The app reliably estimates the total cost of an expensive purchase in India by factoring in all applicable taxes.
• It’s user-friendly. Anyone can use this online GST calculator without any prior knowledge of taxation or accounting. The user-friendliness of the interface ensures that it may be put to good use by virtually anyone.
• There is no cost associated with using this calculator.
• The online GST calculator does not need any special knowledge or skills to use. There’s no rocket science in using the GST calculator. Being an accessible resource, the GST calculator may be utilized by anyone, regardless of background or experience.
• Conveniently, you can use a smart calculator to figure out the total amount of tax. This tax is payable by you on a taxable item.

Following are the taxes which will be a set-off with the same or different tax input credits:

• CGST
• CGST
• SGST
• IGST
• IGST, CGST and SGST

Conclusion

To sum up, to bring all the taxable items under one umbrella, GST was born. Under GST policy, a store or business owner is required to register for a unique ID number to use GST. To make it more simple and calculate GST online, a GST calculator surfaced. All the taxable items sold in the same state are subject to sales tax. This is done at both the central and state levels. It was launched with an aim of “one tax for all”. For further details visit the Piramal Finance website and get more information.