The GST calculator is an easy-to-use, practical web tool for computing the tax due for a certain month or quarter. Companies like Bajaj Finserv, which provides financial services, offer this tool without charge. This calculator can be used by a wide range of users, including buyers, producers, and distributors. This calculator helps taxpayers determine their GST payable in advance. It helps manage your monthly tax-related transactions.
The ‘Goods and Services Tax,’ or GST, is the name of the indirect tax levied on the provision of products and services. As of July 1, 2017, India’s GST superseded all other indirect taxes as a single taxing structure. The GST Act was approved by the Parliament on March 29, 2017, following the central government’s passage of the legislation during the 2017 budget session. The VAT, Entrance Tax, and Octroi were only a few of the indirect taxes that were eliminated.
GST is a comprehensive tax applied on the manufacture, sale, and consumption of products and services in the country. Various small and large enterprises must have a GST Identity Number to register under GST regulation. All sales that happen between states are subject to the Integrated GST. Moreover, both Central GST and State GST are assessed on any intrastate sales.
There are Several Categories Under Which GST May be Categorised:
- Central Goods and Services Tax (CGST)
- State Goods and Services Tax (SGST)
- Integrated Goods and Services Tax (IGST)
IGST is paid for interstate supplies when the point of supply is in a different State than the provider’s location. The site of supply is in the same State as the location of the supplier for intrastate supplies. An equal rate of CGST and SGST is charged. A GST calculator helps you calculate all these tricky calculations.
How to Calculate GST Using a GST Calculator?
You can utilize the GST calculator with ease by following these easy steps:
Step 1- Enter the following details:
- The product or service’s net cost.
- Any applicable GST rates, such as 5%, 12%, 18%, and 28%.
Step 2- Choose ‘compute’ from the menu. The GST calculator will also show the tax amounts for each tax head, including CGST, SGST, and IGST. The calculator will use the final or gross price of the goods and services to be billed to calculate the tax amounts.
Formulas for GST Calculations:
With the aid of the following formula, any company, manufacturer, wholesaler, or retailer can compute GST with ease:
When GST is Not Included:
- (Value of Supply x GST%)/100 = The GST amount.
- Supply value + GST amount = Price to be charged.
When the value of the supply contains GST:
- Supply value – [Supply value x {100/(100+GST%)}] = GST Amount.
Advantages of a GST Calculator
It provides the split of the rate between CGST and SGST and makes it easier to calculate IGST correctly. This is one of the many advantages of GST calculators. The GST calculator saves time and lowers the possibility of human error by calculating the entire cost of goods and services.