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Easy GST Calculator

Under the GST regime, goods and services can be classified into five different tax brackets – 0 percent, 5 percent, 12 percent, 18 percent and 28 percent. However, when we speak of many other products, such as petroleum-related products, alcoholic beverage-related products and electrical-related products, they do not fall under the framework of the GST. These goods are bought separately by the respective state governments in accordance with the previous tax regime.

 

Generally, GST is extracted from the VAT scheme (Value Added Tax) and essentially means that it can be assessed at any point and to the consumer who has to pay the amount of GST paid and claimed by the last dealer or vendor in the supply chain. Products and Services Tax (GST) is an indirect tax that entered into force in 2017 and is imposed on the supply of goods and services. GST may also be said to be a complete and multi-stage tax imposed on any addition of value. It entered into effect on 1 July 2017 and the various indirect taxes in the country were abolished and reintroduced.

 

Goods and services tax, abbreviated as GST, is the type of tax levied by the Government of India at national level. You can use various Easy GST Calculator available on several online platforms that can be used to calculate the cost of the GST(Goods Or Services Tax). The GST charged by the Government of India on vendors, producers and buyers of products and services at national level. GST is taken from the definition of Value Added Tax (VAT) which means that it is levied at each point and that the customer is to pay the amount of GST paid by the last dealer or seller in the supply chain.

 

Method for measuring GST using the GST calculator:

Under the current tax system, taxpayers can read about the various rates of GST available to different groups. These are 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent, which are required for the measurement of the GST.

 

Different heads of tax under the GST:

 

GST can be grouped into four distinct heads, such as

 

  • State Goods and Services Tax (SGST): this tax is levied by the Government of the State.
  • Central Goods and Services Tax (CGST): this tax is levied by the central government.
  • Union Territorial Goods and Services Tax (UTGST): Union Territorial Government collects this tax.
  • Charge on Integrated Products and Services (IGST). It shall be obtained by the Central Government for inter-state purchases and imports.

GST Calculation Formula:

For calculating GST, following mentioned formula can be used by the taxpayer. Following formula helps to calculate net price of the product after application of GST and removing GST as well.

The formula for GST calculation:

  1. Add GST:

GST Amount = (Original Cost x GST%)/100

Net Price = Original Cost + GST Amount

  1. Remove GST:

GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}]

Net Price = Original Cost – GST Amount.

GST calculation Example:

Let’s assume that a product is sold for Rs. 2,000 and GST applicable to that product is 12 %.

Then the net price of the product becomes Rs. 2,000 + 12% of Rs.2,000.

This comes out as Rs. 2,000 + Rs. 240 = Rs. 2,240

Calculation of Tax under GST:

Production tax credit may be used by suppliers and retailers under the GST programme. The table below provides a contrast between the old tax system and the GST tax system.

Here is an example of the disparity between the amount of tax owed under the old tax regime and the GST system:

Method for using online GST calculator tools:

Several online websites have an online GST calculator for consumer convenience.

 

Select the GST Inclusive/GST Exclusive option as requested by the customer.

Join the initial quantity of the commodity.

Pick the percent GST rate appropriate to the commodity.

Click the “Calculate” button to calculate the final price of the product.

 

FAQ’s GST Calculator:

 

  1. Is it appropriate to file an ISD?

ISD is entitled to receive mandatory GST certification in a State or UT from which it makes taxable suppliers of goods or services or both.

  1. Who decides to apply the GST rate?

The Center and the States shall jointly determine the thresholds for CGST and SGST.

  1. What is the need for dual GST?

In India, both the Center and the States have the right to levy and collect taxes. Both governments have various responsibilities that require money to be gathered. The dual GST preserves the need for fiscal federalism.

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