Online GST Calculator by Easebuzz

Business benefits of using online GST calculator

  • 1. Accuracy guaranteed: Eliminate calculation errors and ensure compliance with GST regulations.

  • 2. Time saver extraordinaire: Automate calculations and free up time for other tasks.

  • 3. Price crafting made easy: Accurately determine product pricing and make informed decisions.

  • 4. Cash flow mastery: Forecast GST liability and manage cash flow effectively.

  • 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 with online 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. 

  • 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.

  • 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. 

  • 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:

benefits

How GST works

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

How to calculate GST (as per the revised rule)

  • 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.

  • 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).

  • Deposit the GST liability to the government. The supplier must deposit the GST liability to the government within the specified deadline.

  • 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.

Benefits of using ePOS for your business

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.

Automate tax payment with Easebuzz Payments Platform

Businesses can manage receivables and payables effortlessly with Easebuzz.

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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