GST Calculator

How Is GST Calculated?

Calculation of Goods and Service Tax is quite simple in nature, it can be calculated simply by multiplying the total taxable amount by the GST rate. In case it is an inter-state transfer, the applicable CGST and SGST components are divided into two equal parts. 

GST Calculation Formula

To calculate the formula, lets first understand the common terminologies used in the GST calculations:

Taxable Value: It is the actual cost of goods or services or both on which GST is charged. It is also known as GST Exclusive amount.

Invoice Value: It is the total of Taxable value + GST amount, also known as GST inclusive amount.

Example 1.

Ms. Amisha purchased goods from a local dealer worth Rs. 1,000 on which GST is applicable at the rate of 18%.

As it is a purchase within the state i.e Intra State, CGST & SGST would be applicable at the rate of 9% each.

Here, Taxable Value = Rs. 1,000/-

CGST = Rs. 1,000*9% = 90

SGST = Rs. 1,000*9% = 90

Total GST Amount = CGST +SGST = 90+90= Rs. 180/-

Invoice Value = Taxable Value + GST Value = Rs.1,000 + Rs.180 = Rs.1,180 

Example 2:

Ms. Amisha of Gujarat purchased goods from Mr. Taneja of Uttar Pradesh worth Rs. 1,000 on which GST is applicable at the rate of 18%.

As it is a purchase outside the state i.e Inter State, IGST would be applicable at the rate of 18%.

Here, Taxable Value = Rs. 1,000/-

IGST = Rs. 1,000*18% =Rs.180 

Total GST Amount = IGST Value = Rs. 180/-

Invoice Value = Taxable Value + GST Value = Rs.1,000 + Rs.180 = Rs.1,180

A GST calculator online is based on a mathematical formula which is as follows:

GST = Taxable amount x GST rate

Important Note: 

Method of calculating the GST amount remains the same where goods or services are traded between states. i.e.  supply of goods or services or both between states. Here, IGST would be applicable at the respective GST tax rate.

Advantages of Online GST Calculators

An online GST calculator enables you to obtain the GST value including price based on the applicable GST rate. It helps you to get the bifurcated CGST and SGST or calculate the IGST from the total GST amount. It removes the hassle of manual calculation and removes the chances of arithmetic errors saving time and energy by showing instant results.

Examples of Understanding GST Calculation

Let us understand the GST calculation in detail while comparing the same with pre-GST indirect tax norms.

GST Calculation by Manufacturers:

GST Calculations by Wholesalers & Retailers:

What are the rates of GST in India?

Listed below are the applicable GST percentages in India:

• No GST is applicable on necessary items like wheat, milk, flour etc.

• 0.25% GST is applicable on rough diamonds

• 3% GST on gold, silver and other precious metals.

• 5% GST 

• 12% GST

• 18% GST

• 28% GST

What Is the GST Inclusive Amount?

It is the amount which includes the sale price of goods or services along with the applicable GST amount in it.

What Is the GST Exclusive Amount?

It is the amount which refers to the sale price of goods and services which does not include the applicable amount of Goods and Service Tax.

How to Calculate GST Online in the Case of Reverse Charges?

In simple terms, the reverse charge of GST means the recipient of the goods and services is liable to make the GST payment instead of a supplier. Hence, the calculation in the case of reverse charge is also similar to normal GST calculation.

For instance, Mr X bought a product whose GST exclusive cost is Rs. 10,000 and the applicable GST rate is 18%. Hence Mr X (recipient of goods) has to pay Rs. 10,000 to the supplier/dealer and the GST amount of Rs. 1,800 has to be paid to the government by him.

Here it is the liability of recipient to pay tax instead of supplier.

How to use this GST calculator

Since the process of calculation of GST may be complex and confusing or even some times time consuming due to various reasons, we made it easy for you.

Steps for using this calculator –

1. First, select GST exclusive/inclusive as per your need.

2. Enter the original amount.

3. Select your required GST rate from the drop down given.

4. Select CALCULATE GST to get the results.

To sum up, Goods and Service Tax is an indirect tax introduced by the Indian Government that replaced multiple indirect taxes such as VAT, excise duty, CST, etc. A GST calculator can help you to instantly calculate the GST inclusive price in no time upon entering two inputs: GST exclusive price of a product or service and the applicable GST rate.

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