GST Calculator

GST Calculator

GST stands for Goods and Services Tax. It's a consumption tax levied on the supply of most goods and services. You can use the GST calculator to calculate the GST amount for the product or services. It is a digital tool designed to simplify calculating Goods and Services Tax (GST). Whether you're a business owner, consumer, or simply curious about GST, this calculator provides accurate and instant results. By inputting the basic figures, such as the price and GST rate, the calculator automatically determines the total amount of the product and services.

What is GST?

GST, or Goods and Services Tax, is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced a complex web of multiple indirect taxes imposed by the central and state governments, creating a unified tax system. GST is a destination-based tax, meaning it is collected at the point of consumption rather than production. By simplifying the tax structure, GST aims to boost economic growth and improve compliance.

What is a GST Calculator?

A GST calculator is a digital tool designed to simplify the process of calculating the Goods and Services Tax (GST) amount on a product or service. It takes the base price as input and, based on the applicable GST rate, calculates the total amount, including GST. This tool is beneficial for both consumers and businesses. Consumers can quickly determine the final price of a product, while businesses can use it to calculate GST liabilities accurately. Many online platforms, including Policybazaar, offer GST calculator features.

Also Read: Types of Taxes

How to Use the GST Calculator?

Policybazaar offers taxpayers a specialized and professional GST Calculator tool. This tool makes GST calculation easier, particularly for those dealing with multiple GST rates.

Steps to Use Policybazaar’s GST Calculator:

Below are the steps to use the GST Calculator India: 

• Visit the Policybazaar GST Calculator page: Open your web browser and go to Policybazaar's GST calculator page.
• Enter the base price: Input the original price of the product or service without GST.
• Select the GST rate: Choose the correct GST rate applicable to the item from the available options (3%, 5%, 12%, or 28%).
• View the results: Once you've entered the required details, the calculator will display the calculated GST amount, SGST, CGST, IGST (if applicable), and the final price, including GST.

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Benefits of GST Calculator 

Below are the benefits of GST Calculator online: 

• Accurate and Quick Calculations: Calculates GST amount precisely and instantly.
• Time-Saving: Eliminates manual calculations, saving time and effort.
• Reduced Errors: Minimizes calculation mistakes due to human error.
• Easy to Use: User-friendly interface with simple input fields.
• Clarity and Transparency: Provides a clear breakdown of the final price and tax components.
• Free Availability: GST Calculator India is available online for free.
• Flexibility: Calculates GST for different product categories and GST rates.

How Does the GST Calculator Work?

A GST calculator is essentially a simplified version of the GST calculation formula. Below is the GST calculation formula that the GST Calculator online uses: 

GST Amount = (Selling Price x GST Rate) / 100.

In this case, the Selling Price is calculated by adding the cost price and the profit amount. The calculator includes the Selling Price, which represents the overall value of goods or services.

It is the original price of the product or service before GST is added. It's the amount on which the GST is calculated.

Also Read: New Tax Regime 2024

How Can a GST Calculator Help You?

GST calculator India can be a valuable tool for both consumers and businesses.

• Understanding the final price: Quickly calculates the total cost of a product or service, including GST.
• Budgeting: Helps in planning expenses by knowing the exact amount to be paid.
• Checking for price accuracy: Ensures that you are not overcharged by retailers.
• Understand the GST structure and rates better: Provides insights into the different GST components (CGST, SGST, IGST, UTGST) and how they impact the final price.

• Accurate invoicing: Helps create invoices with correct GST amounts.
• Calculating tax liabilities: Determines the total GST payable to the government.
• Price planning: Assists in setting product prices considering GST components.
• Inventory management: Helps track GST on stock items.
• Compliance: Helps maintain accurate records for GST returns and audits.
• Risk mitigation: Reduces the likelihood of GST-related penalties by ensuring correct calculations.

What is the GST Inclusive Amount?

The GST inclusive amount is the total price of a product or service that includes the Goods and Services Tax (GST). It's the final figure a customer pays and encompasses both the base price of the item and the applicable GST.

For example, if a product costs ₹100 and the GST rate is 18%, the GST inclusive amount would be ₹118.

What is the GST Exclusive Amount?

The GST exclusive amount is the original price of a product or service before the Goods and Services Tax (GST) is added. It is the base value on which the GST is calculated.

For example, if the GST inclusive price of a product is ₹118 and the GST rate is 18%, the GST exclusive amount (or base price) would be ₹100.

What is GSTIN?

GSTIN stands for Goods and Services Tax Identification Number. It's a unique 15-digit number allotted to every registered person under the GST regime in India. Think of it as a unique identification number for businesses registered under GST.

This number is important for various GST-related activities, such as filing returns, claiming input tax credit, and generating GST invoices.

Check Also: Income Tax Calculator

What are the Tax Components Under GST?

GST is composed of several components based on the nature of the transaction.

• Central Goods and Services Tax (CGST): This is levied by the central government on intra-state supplies of goods and services. In simpler terms, if a product is both bought and sold within the same state, CGST is applicable.
• State Goods and Services Tax (SGST): SGST is levied by the state government on intra-state supplies. It is paired with CGST for transactions within a state.
• Union Territory Goods and Services Tax (UTGST): This is levied by the Union Territory government on intra-state supplies within its jurisdiction. It functions similarly to SGST.
• Integrated Goods and Services Tax (IGST): Applied to inter-state transactions, IGST is levied on the supply of goods and services between different states. It is collected by the central government and later shared with the concerned states.

How to Calculate GST?

There are two primary scenarios:

Calculating GST Inclusive Price

• Formula: GST Inclusive Price = Price + GST Amount
• Example: If the price of a product is ₹100 and the GST amount is ₹18, then:
  • GST Inclusive Price = 100 + 18 = ₹118

Calculating GST Exclusive Price

• Formula: GST Exclusive Price = GST Inclusive Price / (1 + GST Rate/100)
• Example: If the GST inclusive price is ₹118 and the GST rate is 18%, then:
  • GST Exclusive Price = 118 / (1 + 18/100) = ₹100

Read More: Income Tax Login

FAQs

How do you calculate GST under the reverse charge mechanism?

Calculating GST under the reverse charge mechanism is similar to calculating regular GST. In a reverse charge scenario, the buyer, rather than the seller, is responsible for paying the GST. The tax rate remains the same in both cases. For instance, if you purchase items worth Rs. 10,000 with an 18% GST rate, the GST amount to be paid is Rs. 1,800. If CGST and SGST are applicable, each would amount to Rs. 900. The key difference is that under the reverse charge mechanism, the buyer pays Rs. 1,800 GST.

How is 18% GST calculated on the total amount?

To determine 18% GST on a total amount, multiply the amount by 18% (or 0.18). For instance, if the total amount is Rs. 1000, the GST would be Rs. 180 (1000 x 0.18).

How can I calculate my GST?

To calculate GST on your total sales, first identify the GST rate applicable to your product or service. Multiply the sales value by this rate to find the GST amount.

How is GST calculated on a bill?

To calculate GST on a bill, first determine the GST rate for the item(s) on the bill. Multiply the item's value by this rate to get the GST amount, then add it to the total to find the final payable amount.

How can a buyer use a GST calculator?

Enter the net price before GST and specify the GST rate. The calculator will compute the total cost, including CGST, SGST, and the overall tax amount.

How can a manufacturer or wholesaler use a GST calculator?

Input the production cost or cost of goods, the profit percentage, and the GST rate. The calculator will display the total production cost, along with the CGST, SGST, and overall tax amount.