GST Calculator: How to calculate your GST online in India?
What is Indian GST?
Starting July 1, 2017, India implemented a Goods and Services Tax (GST). This new nationwide tax system replaced numerous state and central taxes, including the Value-Added Tax (VAT), Service tax, Excise duty, Customs duty, and other indirect taxes. The GST is levied on the supply of goods and services at a national level and is governed by the GST Council.
Under the GST regime, all businesses must register for GST if their annual turnover exceeds Rs 20 lakh. Businesses with a turnover below Rs 20 lakh are not required to register for GST but can do so voluntarily. Registered businesses must file monthly or quarterly GST returns, depending on their turnover.
Indian taxpayers can use a GST calculator to determine their liabilities under the GST regime. The calculator takes into account various factors such as the type of goods or services supplied, the place of supply, the applicable GST rate, and any eligible exemptions or deductions.
The Goods And Services Tax in India
The Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state-specific taxes; multistage because it is levied at each stage of the supply chain from manufacture to final consumption, and destination-based because it is collected from the point of consumption and not from the point of origin.
The GST is governed by the GST Council which is comprised of the Union finance minister and his state counterparts. The council decides on various matters related to GST such as rates, exemptions, threshold limits, etc. The rates for goods and services are split into four different slabs – 5%, 12%, 18%, and 28%. Some items are exempted from GST altogether such as crude oil, natural gas, petroleum products, etc.
To file your GST returns, you need to have a valid GST registration number. You can obtain this number by applying for it through the concerned authorities. Once you have received your registration number, you can start using a GST calculator to calculate your tax liability.
What to keep in mind when using an online GST calculator in India?
First and foremost, you need to input the correct turnover figures for your business. This turnover figure includes both taxable and exempt supplies.
Next, you need to input the applicable GST rate for your business.
For Foreigners working in India: The first thing that any foreigner working in India needs to know is that the Goods and Services Tax (GST) is now a reality. This means that all prices for goods and services will now have a GST component added to them. To make sure that you are not paying more than you should be, it is important to use a GST calculator.
There are a few things that you need to keep in mind when using a GST calculator online in India.
- The first is that the base price of the good or service will not include the GST. This means that you will need to add the GST amount to the base price to get the final price. For example, if the base price of a good is Rs 100 and the GST rate is 18%, then the final price of the good would be Rs 118.
- Another thing to keep in mind is that some items may be exempted from GST. This means that they will not have any GST added to their base price. However, it is still important to check with a tax professional or use a GST calculator to make sure that an item is truly exempted from GST.
- Finally, it is essential to remember that prices may vary depending on where you purchase something in India. This means that it is possible to get a better deal on an item if you purchase it outside of your home state.
How is GST Calculated?
To calculate GST, you need to know the GST rate that applies to the purchase being made. The GST rate is a percentage of the purchase price and is added to the cost of the good or service. For example, if the GST rate is 5% and you’re buying a book for ₹100, the GST would be ₹5 and the total cost of the book would be ₹105.
Are you using the GST Calculator online in India? Does it answer all your queries?
If you are using the GST calculator in India, there are certain things that you need to keep in mind.
- First and foremost, the GST calculator is a tax tool and not a financial one. That means, it cannot be used to calculate your total tax liability. It can only be used to calculate the GST that is payable on a supply of goods or services.
- Secondly, the GST calculator will not work if you do not have all the required information. That includes the value of the supply, the GST rate applicable, and whether the Input Tax Credit (ITC) can be availed or not.
- Lastly, even though the GST calculator is designed to simplify things, it is always advisable to seek professional help if you are unsure about anything.
Conclusion
If you’re using a GST calculator online in India, there are a few things you need to keep in mind. First of all, make sure that the calculator you’re using is updated with the latest GST rates. Secondly, input all the relevant information correctly so that you get an accurate estimate of the GST payable on your purchase. And finally, remember to take into account any applicable
Discounts or exemptions when calculating the GST. With these tips in mind, you can be sure that you’ll get accurate and helpful results from its GST calculator. To learn more about personal finances you can visit the website of Piramal Finance.