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GST - the Goods and Services Tax, is an indirect tax in India.

With its origin, it has replaced many other indirect taxes in India such as VAT, CST, central excise duty, service tax and so on. GST is levied on the sale of goods and services in the country. GST is collected at the point of consumption and not at the point of origin unlike other taxes.

GST is a comprehensive, multi-stage, destination-based tax. This is levied on every value addition. The law governing GST was passed in the parliament on the 29th of March 2017 and it was implemented across the country on the 1st of July 2017.
GST information image
GST tax slab information image

GST majorly consists of the following tax slabs:

0%

3%

5%

12%

18%

28%

Certain products and services like petroleum products, high-speed diesel, motor spirit, natural gas, aviation turbine fuel, and alcoholic liquor for human consumption do not come under GST. These products and services are taxed by the individual State Governments, as per their tax policies.

What are different tax components under GST?

What are different tax components under GST?

CGST

Central Goods and Services Tax (CGST) - This is applicable to the transactions done within state boundaries or at the intrastate level.

SGST

State Goods and Services Tax (SGST) - Very much like CGST, this tax is also applicable to the transactions done within state boundaries or at the intrastate level

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IGST

This tax component is applicable to the transactions done between different states or at the interstate level

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CGST

Central Goods and Services Tax (CGST) - This is applicable to the transactions done within state boundaries or at the intrastate level.

SGST

State Goods and Services Tax (SGST) - Very much like CGST, this tax is also applicable to the transactions done within state boundaries or at the intrastate level

CGST SGST Exmple

IGST

This tax component is applicable to the transactions done between different states or at the interstate level

IGST Example

Any sale or supply of goods or services within the state will be liable to CGST & SGST . That means the revenue collected from such sales are shared equally between the centre and the state. Before the introduction of GST, such transactions were subjected to VAT, central excise or service tax.

Similarly, IGST collected from any interstate transaction is collected by the Centre and then shared on the basis of destination of goods.

What is GST calculator?

GST calculator is an online ready-to-use calculator to compute the payable GST payable for a month or quarter depending on the amount. This calculator is apt for use by users all types of trade - buyers, sellers etc.

Advantages of GST Calculator

The simplified GST calculator helps you determine the price for gross or net product depending on the amount and gives you a split of percentage-based GST rates. It helps give the division of the rate between CGST and SGST or calculate IGST accurately.

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How to calculate GST using GST calculator?

You can easily use the GST calculator by following the simple steps:

Step-1

Enter the amount and profit ratio


Step-2

Select the GST Slab as per your service provided.

Calculate GST Now

Formulae for GST calculation

Any business, manufacturer, wholesaler and retailer can calculate GST easily with the help of the following formula:

Where GST is excluded:

GST Amount =
(Value of supply x GST%)/100


Price to be charged =
Value of supply + GST Amount


Where GST is included in the value of supply:

GST Amount =
Value of supply – [Value of supply x {100/(100+GST%)}]

Examples for understanding GST calculation

Examples for understanding GST calculation

A manufacturer produces goods (10% tax rate applicable) worth ₹1,000 and sends it to a warehouse for labelling & packaging. The warehouse adds ₹250 to the existing value of the goods. Then, sell it to the retailer. The retailer adds its advertisement cost of ₹300.

Here’s how the value of the goods & tax on it changes, and the final effect on the price under GST.

Particulars
Cost
Tax @10%
Tax liability to be deposited to the government
Invoice Total
Manufacturer₹1,000₹100₹100₹1,100
Warehouse adds ₹250 for labelling & packaging₹1,250₹125₹25₹1,375
Advertisement cost of ₹300 added by the retailer₹1,150₹155₹30₹1,705
Total₹1,550₹1,705
Particulars
Cost
Tax @10%Tax liability to be deposited to the governmentInvoice Total
Manufacturer₹1,000₹100₹100₹1,100
Warehouse adds ₹250 for labelling & packaging₹1,250₹125₹25₹1,375
Advertisement cost of ₹300 added by the retailer₹1,150₹155₹30₹1,705
Total₹1,550₹1,705

Frequently Asked Questions

FAQs

What is the GST calculator?
What is the GST calculator?

GST calculator is used to calculating the payable GST for a specific period.

Who can use the GST calculator?
Who can use the GST calculator?

The GST calculator can be used by people who are in connection with any sort of trade - buyer, manufacturer, and wholesaler as well.

How can a buyer use the GST calculator?
How can a buyer use the GST calculator?

Enter the net price before GST and then enter the rate of GST. It will calculate the total cost of production, CGST, SGST, and total tax.

How can a manufacturer / wholesaler use the GST calculator?
How can a manufacturer / wholesaler use the GST calculator?

Enter the cost of production/cost of goods, profit ratio percentage, and rate of GST. It will show the total cost of production, CGST, SGST, and total tax.

What are the benefits of the GST calculator?
What are the benefits of the GST calculator?

The GST calculator gives you an accurate split of tax components and is a time save when calculating total cost of goods and services and the tax amount.

What is the GST calculator?

GST calculator is used to calculating the payable GST for a specific period.

Who can use the GST calculator?

The GST calculator can be used by people who are in connection with any sort of trade - buyer, manufacturer, and wholesaler as well.

How can a buyer use the GST calculator?

Enter the net price before GST and then enter the rate of GST. It will calculate the total cost of production, CGST, SGST, and total tax.

How can a manufacturer / wholesaler use the GST calculator?

Enter the cost of production/cost of goods, profit ratio percentage, and rate of GST. It will show the total cost of production, CGST, SGST, and total tax.

What are the benefits of the GST calculator?

The GST calculator gives you an accurate split of tax components and is a time save when calculating total cost of goods and services and the tax amount.

Want to create GST Compliant Payable Invoices?

Create and send GST compliant invoices that your customers can pay online instantly. Get paid faster and improve your cash flow. Know More...

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