Online GST Calculator by Easebuzz
Easebuzz simplifies taxes with its user-friendly GST calculator, eliminating complex calculations for businesses of all sizes (buyers, manufacturers, wholesalers). Make informed financial decisions and avoid unnecessary burdens with this tool that streamlines GST compliance in just minutes.
What is GST calculator?
GST is a tax that the government applies to the value added at each stage of a product's journey, from production to the final sale. GST calculator is a ready-to-use calculator determine the gross or net price of your products. This calculator is apt for use by users of all types of trade - buyers, sellers etc. It is an essential tool for businesses to ensure that they are compliant with GST regulations and avoid penalties.
How can you calculate GST with this tool?
Easebuzz GST when implemented brings uniformity in tax collection. In the GST regime, tax is collected cumulatively at the end stage of production of goods or services. There are five slabs to collect GST that are 0%, 5%, 12%, 18% and 28%, and different goods and services fall under different tax slabs.
Advantages of Online GST Calculator for your business
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1. Accuracy guaranteed: Eliminate calculation errors and ensure compliance with GST regulations.
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2. Time saver extraordinaire: Automate calculations and free up time for other tasks.
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3. Price crafting made easy: Accurately determine product pricing and make informed decisions.
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4. Cash flow mastery: Forecast GST liability and manage cash flow effectively.
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5. Stress-free compliance: Stay up-to-date with GST rules and avoid penalties.
The free GST calculator helps businesses determine the price for gross or net product depending on the amount and gives entrepreneurs a split of percentage-based GST rates. It helps with the division of rate between CGST and SGST or calculating IGST accurately.
Types of GST applicable in India
CGST
CGST is the indirect tax levied by the Central Government. It is imposed on transaction of goods and services which are undertaken within the state i.e. intrastate. The tax collected under the heading “CGST'' is payable to the central government treasury.
SGST
SGST is tax imposed by the State Government. SGST. It is levied on intrastate sales of goods and services, i.e., sales made within a state. It includes the amalgamation of State Sales Tax, Luxury Tax, Entertainment Tax, Levies on Lottery, Entry Tax, and other taxation's related to the movement of commodities and services under state authority through one uniform taxation.
IGST
IGST is applied on the interstate supplies of goods and services. For example, if the supply of goods and services occurs between Gujarat and Rajasthan, IGST will be applicable. IGST is also applicable on the goods imported to distribute among the respective states.
UTGST
UTGST and SGST share a commonality: both entail taxation revenue. The sole distinction lies in the destination of the tax funds, as UTGST directs them towards the treasury of the relevant Union Territory where the goods or services have ultimately been utilized. The UTGST is applicable to Union territories like Delhi, Lakshadweep, Damn and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands, Chandigarh.
How to calculate GST using a GST calculator?
Formula for GST calculation
GST Amount = (Original Cost*GST Rate Percentage) / 100. Net Price = Original Cost + GST Amount.
Examples for understanding GST calculation:
Assume in the year 2023, an entrepreneur from the electronic industry produces fancy gadgets (10% tax rate applicable) each worth ₹500 and sends to a warehouse for labelling & packaging. The warehouse adds ₹50 to the existing value of the goods. Then, sell it to the retailer. The retailer adds its advertisement cost of ₹50. Let’s break it down.
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Step 1: The Entrepreneur's Product
Imagine you're an entrepreneur who creates a product, let's say it's a fancy gadget. The cost to produce this gadget is ₹500.
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Step 2: Sending to the Warehouse
Now, you want to make your gadget look even better, so you send it to a warehouse. The warehouse adds labels, packaging, and other improvements to your gadget. These improvements cost ₹50.
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Step 3: Selling to the Retailer
With the improved gadget in hand, the warehouse sells it to a retailer. The retailer, in this case, wants to promote your gadget and decides to add an advertisement cost of ₹50.
Now, let's understand how GST comes into play:
Here's how GST works in our example:
To calculate GST as per revised GST rates, we need to first identify the nature of the transaction. In the given example, the transaction is a sale of goods from a manufacturer to a warehouse, and then from the warehouse to a retailer. This is a taxable supply, and GST is applicable at the rate of 10%.
| Particulars | Cost | Tax @10% | Tax liability deposited to Gov | Invoice total |
|---|---|---|---|---|
Manufacturer |
500 | 50 | 50 | 550 |
Warehouse adds Rs.50 for labelling & packaging |
550 |
55 |
5 |
605 |
Advertisement cost of ₹50 added by the retailer |
600 |
60 |
5 |
660 |
Total |
600 |
660 |
The following is a step-by-step guide on how to calculate GST as per the revised rule:
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Determine the taxable value of the supply. The taxable value is the total value of the supply, including the cost of the goods, any other charges incurred by the supplier, and the profit margin. In the given example, the taxable value for the manufacturer is ₹500, and the taxable value for the warehouse is ₹550.
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Apply the GST rate to the taxable value to calculate the GST liability In the given example, the GST liability for the manufacturer is ₹50 (10% of ₹500), and the GST liability for the warehouse is ₹55 (10% of ₹550).
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Deposit the GST liability to the government. The supplier must deposit the GST liability to the government within the specified deadline.
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Calculate the invoice total. The invoice total is the taxable value plus the GST liability. In the given example, the invoice total for the manufacturer is ₹550, and the invoice total for the warehouse is ₹605.
It is important to note that the revised GST rule has simplified the GST calculation process. Under the revised rule, there is only one GST rate for most goods and services, which is 10%. This makes it easier for businesses to calculate and pay GST.
It is also important to note that the GST liability is deposited to the government by the supplier. In the given example, the manufacturer will deposit ₹50 to the government, and the warehouse will deposit ₹55 to the government.
What is GST (Goods & Service Tax)?
GST, or Goods and Services Tax, is a single tax applied to most things you buy in India. Think of it like a simplified VAT, replacing multiple old taxes with one easy-to-understand system. This means less confusion, fairer prices, and a smoother business environment for everyone!
What is the meaning of GST inclusive amount?
GST inclusive tells you the price already includes the Goods and Service Tax. It's the final amount you pay, with no surprises at checkout. Think of it as the "all-in" price, making shopping simpler and budget-friendly!
What is GSTIN (Goods & Service Tax Identification number)?
GSTIN, short for Goods and Services Tax Identification Number, is like your unique business fingerprint in the GST world. It's a 15-digit code assigned to every registered business under the GST regime. Think of it as your tax passport, allowing you to buy and sell goods and services while seamlessly paying and collecting GST. Having a GSTIN unlocks benefits like claiming input tax credits and participating in the formal economy, so it's crucial for any business operating in India. Remember, it's free to get and easy to manage, opening doors to a smoother and more transparent tax experience.
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Frequently Asked Questions
GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180.
GST Amount = (Original Cost*GST Rate Percentage) / 100. Net Price = Original Cost + GST Amount.
A simple example of how GST is calculated typically by business owners.
| Particulars | Rate(%) | Amount |
|---|---|---|
| Invoice value | 12% |
3,00,000 |
GST |
12,000 |
|
Price to be charged on the Invoice |
3,24,000 |
Manufacturers can enter the cost of production/cost of goods, profit ratio percentage, and rate of GST.
| Particulars | Rate(%) | Amount Pre-GST | Amount under GST |
|---|---|---|---|
| Cost of the product | - |
2,00,000 |
2,00,000 |
| Profit | 10.00% |
20,000 |
20,000 |
| Excise Duty | 12.50% |
27,500 |
Nil |
| Total | - |
2,47,500 |
2,20,000 |
| VAT | 12.50% |
30,938 |
Nil |
| CGST | 6% |
Nil |
13,200 |
| SGST | 6% |
Nil |
13,200 |
| Final Invoice to the wholesaler | - |
2,78,438 |
2,46,400 |