Online Goods and Service Tax (GST) Calculator

How to Use the GST Calculator:

1. Choose GST Type:
   • Select either “GST Exclusive” or “GST Inclusive” by clicking on the respective option.
2. Enter Cost:
   • Input the cost of goods or services in the “Cost of Goods/Services” field.
3. Enter/Select GST Rate:
   • Enter your desired GST rate in the “Custom Rate” field, or
   • Choose from the predefined GST rates (3%, 5%, 12%, 18%, 28%) by clicking on the respective option.
4. Calculate GST:
   • Click on the “Calculate GST” button to see the results.
5. View Results:
   • The “Total cost of selling” and “Total GST” will be displayed on the right-hand side of the calculator.

What is GST?

The Goods and Service Tax (GST) is an indirect tax implemented in India, replacing various other indirect taxes like excise duty, VAT, and service tax. It was approved by the parliament on March 29, 2017, and came into effect on July 1, 2017. GST applies to almost all goods and services in the market.

India’s GST is a multi-stage, value-added tax system applicable nationwide, covering every point of sale. Intra-state sales are subject to both central and state taxes, while inter-state sales are covered by the Integrated GST (IGST).

GST comprises three main components:

• CGST (Central GST): Collected by the central government for intra-state sales.
• SGST (State GST): Collected by state governments for intra-state sales.
• IGST (Integrated GST): Collected by the central government for inter-state sales.

What Is a GST Calculator?

A GST calculator is a simple online tool that helps you calculate GST quickly and accurately. By entering the net or gross price and the GST rate, the calculator provides the gross price and the tax amount. This tool is convenient for determining the GST on various goods and services.

How to Calculate GST Using Our GST Calculator?

We provide a user-friendly GST calculator tool for taxpayers to easily calculate GST. Follow these steps to use our GST calculator:

1. Select GST Type:
   • Choose either “GST Inclusive” or “GST Exclusive” based on your need.
2. Enter the Cost:
   • Input the cost of goods or services in the provided field.
3. Enter/Select GST Rate:
   • Input your desired GST rate in the “Custom Rate” field or choose from the predefined GST rates (3%, 5%, 12%, 18%, 28%).
4. Calculate:
   • Click on the “Calculate GST” button to view the results.

The calculator will display the total GST amount along with the pre-GST and post-GST values.

Benefits of Using GST Calculator

• Accurate Tax Calculation: Easily determine CGST, SGST, and IGST.
• Identify Tax Brackets: Know which tax bracket your transaction falls under.
• Time-Saving: Quickly calculate the tax on goods or services.
• Error Reduction: Minimize mathematical and human errors.

Formula for GST Calculation

• Net Price = Original Cost + GST Amount
• GST Amount = (Original Cost * GST Rate) / 100

The GST calculation simplifies the indirect tax regime by applying appropriate rates based on whether the transaction is intra-state or inter-state.

For Intra-State GST:

• CGST = GST Rate / 2
• SGST = GST Rate / 2
• Total GST = CGST + SGST

Example: For a 28% GST rate, CGST is 14% and SGST is 14%.

Examples of GST Calculation

Intra-State GST Calculation

A dealer in Mumbai sells goods worth ₹50,000 within Maharashtra at an 18% GST rate. The GST split is:

• CGST: ₹4,500 (50,000 * 9%)
• SGST: ₹4,500 (50,000 * 9%)

Inter-State GST Calculation

A dealer in Delhi sells goods worth ₹50,000 to a customer in Punjab at a 12% GST rate. The GST is:

• IGST: ₹6,000 (50,000 * 12%)

GST Calculation for Manufacturers

Manufacturers calculate GST based on IGST, CGST, and SGST, excluding the previous VAT taxes. Here’s an example:

Bill Particulars	Percentage	Amount under GST	Amount pre-GST
Product Cost		₹30,000	₹30,000
Profit	10%	₹3,000	₹3,000
Excise Duty	12.50%	Nil	₹3,750
Total		₹33,000	₹36,750
VAT	12.50%	Nil	₹4,593.75
CGST	6%	₹1,980	Nil
SGST	6%	₹1,980	Nil
Final Price		₹36,960	₹41,343.75

Explanation:

1. Product Cost: The base cost of the product is ₹30,000.
2. Profit: A profit of 10% on the product cost amounts to ₹3,000.
3. Excise Duty: Under the pre-GST regime, an excise duty of 12.50% would amount to ₹3,750.
4. Total: The total cost before adding VAT or GST is ₹33,000 under GST and ₹36,750 under the pre-GST regime.
5. VAT: Pre-GST, a VAT of 12.50% on the total cost would be ₹4,593.75.
6. CGST & SGST: Under GST, both CGST and SGST are 6% each, resulting in ₹1,980 for each.
7. Final Price: The final price under GST is ₹36,960 compared to ₹41,343.75 under the pre-GST regime.

This example demonstrates the GST calculation for manufacturers, showing how the final price differs from the pre-GST regime.

GST Calculation for Wholesale and Retailers

For an invoice value of ₹15,000 with an 18% GST rate, the total price charged by the retailer will be:

• Total Price: ₹17,700 (15,000 * 1.18)

Explanation:

1. Invoice Value: The base value of the invoice is ₹15,000.
2. GST Rate: An 18% GST rate is applied.
3. Total Price Calculation: The total price including GST is calculated as ₹15,000 * 1.18.
4. Total Price: Therefore, the total price charged by the retailer is ₹17,700.

This example demonstrates the GST calculation for wholesale and retail transactions, illustrating the final price with GST included.

GST Rates in India

In India, GST rates for goods and services are divided into different schedules:

GST Rates for Goods:

Schedule Number	GST Rate %
1	Nil
2	0.25%
3	3%
4	5%
5	12%
6	18%
7	28%

GST Rates for Services:

Schedule Number	GST Rate %
1	Nil
2	5%
3	12%
4	18%
5	28%

What Is GST Inclusive Amount?

The GST-inclusive amount is the total value of a product, including GST. Use the formula:

• GST Amount = Original Cost – [Original Cost * (100 / (100 + GST %))]

What Is GST Exclusive Amount?

The GST-exclusive amount is the value of a product excluding GST. Use the formula:

• GST Amount = Original Cost * GST Rate / 100

Frequently Asked Questions (FAQs) on GST

Q1. What is GST?
Ans1. GST (Goods and Services Tax) is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services in India. It replaces various other indirect taxes like excise duty, VAT, and service tax.

Q2. Why was a Constitutional Amendment required for GST?
Ans2. The Indian Constitution needed to be amended to empower both the central and state governments to levy GST simultaneously on goods and services. This dual GST system necessitated changes to the constitutional provisions that previously restricted this ability​.

Q3. What is the time of supply for goods under GST?
Ans3. The time of supply for goods is the earliest of the following: the date of issue of the invoice, the date of receipt of payment, or the date immediately following 30 days from the date of issue of the invoice by the supplier​.

Q4. What is the process of GST registration for new businesses? Ans4. New applicants can register for GST on the common GST portal. They are issued a state-wise GSTIN (Goods and Services Taxpayer Identification Number), which is PAN-based and consists of 15 digits​.

Q5. Are self-supplies taxable under GST?
Ans5. Interstate self-supplies, such as stock transfers and branch transfers, are taxable under IGST even without payment of consideration. However, intrastate self-supplies are not taxable unless registered as a business vertical​.

Q6. What are composite and mixed supplies under GST?
Ans6.

• Composite Supply: A supply consisting of two or more goods or services naturally bundled and supplied in conjunction with each other, where one is a principal supply.
• Mixed Supply: Two or more individual supplies of goods or services made together for a single price, not naturally bundled.

Q7. What is Input Tax Credit (ITC)?
Ans7. ITC allows businesses to reduce the tax they have already paid on inputs from the tax they need to pay on output. It is a mechanism to avoid the cascading effect of taxes​.

Q8. What is the reverse charge mechanism?
Ans8. Under the reverse charge mechanism, the recipient of goods or services is liable to pay GST instead of the supplier. This applies to certain notified goods and services​.

Q9. What is the GST rate structure in India?
Ans9. GST rates in India are categorized into different slabs: 0%, 5%, 12%, 18%, and 28%, depending on the type of goods and services. There are also special rates for certain goods like gold and precious stones​.

Q10. What is the difference between CGST, SGST, and IGST?
Ans10.

• CGST (Central GST): Collected by the central government on intra-state sales.
• SGST (State GST): Collected by the state government on intra-state sales.
• IGST (Integrated GST): Collected by the central government on inter-state sales​ (GST Council)​​.