Must Knows

GST calculator: All you need to know

[] A GST calculator is an easy-to-use online calculator that determines the amount of GST which must be given for a specific month or quarter.

The Goods and Services Tax or GST is a form of taxation levied by the government on a national scale. To compute the GST expense, several GST calculators are accessible on the internet. This tax is levied on sellers, manufacturers, and purchasers of goods and services. GST emerged from the concept of Value Added Tax (VAT), implying that it is imposed at each step of the supply chain, with the consumer required to pay the GST amount levied by the last dealer or provider in the supply chain.

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GST is an indirect tax enforced from July 1, 2017. In India, GST serves as a single system of taxation, replacing all indirect taxes. VAT, Central Excise Duty, Octroi, and Entry Tax are among the indirect taxes that have been repealed.

The government collects GST in a variety of ways, as detailed below:

  • SGST (State Goods and Services Tax) 
  • CGST (Central Goods and Services Tax)
  • UTGST (Union Territory Goods and Services Tax)
  • IGST (Integrated Goods and Services Tax)

What is a GST calculator?

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A GST calculator is an easy-to-use online calculator that determines the amount of GST which must be given for a specific month or quarter. Customers, manufacturers and retailers will all consider this calculator useful in various scenarios. Under the GST system, the cost of the commodities must be borne by the end-user, who should pay a lower price for the goods while maintaining the same profitability as wholesalers and retailers.

GST Calculator Benefits

  • On percentage-based GST rates, the easy GST calculator assists you in determining the gross or net price of the product. 
  • It aids in the appropriate calculation of IGST or the separation of the rates between CGST and SGST. 
  • When calculating the entire cost of goods and services, the GST calculator minimises time and decreases the possibility of human error.

GST Calculator:  Who is it useful for?

Buyers, manufacturers, and wholesalers may all find a GST calculator helpful.

A buyer can enter the net price before GST, followed by the GST rate. The GST calculator will compute the overall cost of manufacturing, the CGST, the SGST, and the total tax.

A producer or distributor can enter the production cost/cost of goods, profit ratio percentage, and GST rate. The GST calculator will display the total manufacturing cost, CGST, SGST, and total tax.

Methods for Using the GST Calculator

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Within the new tax structure, taxpayers can understand the various GST rates that apply to different categories. These are 5%, 12%, 18%, and 28%, and they are essential to ensure a GST check. Certain goods, such as cement, vehicles, and tobacco, are liable to a 28% sales tax. And there is a cess that is only levied on certain goods, including automobiles, cigarettes, and pan masala. There are also commodities and services for which GST is not applied or is not charged.

How to calculate the GST for reverse charges?

The calculation of GST remains the same for reverse charges. The rate and the calculation process remain the same.

What are the GST inclusive and exclusive amounts?

The term GST inclusive is used for items that have the GST amount added to their MRP. No extra tax is charged for such items.  The term GST exclusive is used for items having their MRP excluding GST.

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Category: Must Knows

Debora Berti

Università degli Studi di Firenze, IT

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