• GST Calculator

    GST is the Goods and Services Tax levied by the government of India on the manufacturers, sellers, and consumers of consumer goods and services at the national level. It is based on the principle of Value Added Tax (VAT). As GST is levied on value addition at each stage, a consumer has to pay only the GST charged by the last dealer or supplier in the supply chain.

    Calculate Your Taxes Online

    Implementation of GST has affected various aspects of a business operation ranging from product pricing to tax compliance. This is where the online GST calculator comes in handy. The cost of goods and services can be calculated using an online GST calculator that is available on many third-party websites.

    GST Tax Calculation Formula

    All one needs to do is input the net amount of a good or service and the applicable GST rate (5%, 12%, 18% or 28%) into the tool. Click on the 'Calculate' button and instantly get the gross price of the good or service. GST calculation is represented by the below example:

    A goods or service is sold at the rate of Rs.500. GST rate is 18%. Gross amount of the goods or service = 500 + [500 x (18/100)] = Rs.590

    Formula for GST calculation:

    • Add GST:
    • GST Amount = (Original Cost x GST%)/100

      Net Price = Original Cost + GST Amount

    • Remove GST:
    • GST Amount = Original Cost - [Original Cost x {100/(100+GST%)}]

      Net Price = Original Cost - GST Amount

    Impact of GST on Product Pricing

    Indirect tax will be levied by Central and State Government called Central GST (CGST) and State GST (SGST), respectively. In the case of intra-state transactions, the seller will collect CGST and SGST from the buyer which will be paid to the Central and State Government, respectively. Listed below is an example of the impact of GST on product pricing:

    Old Tax System GST System
    Price of a product sold from Pune to Jaipur = Rs.1,000 Price of a product sold from Pune to Jaipur = Rs.1,000
    VAT @ 10% = Rs.100 CGST @ 5% = Rs.50 + SGST @ 5% = Rs.50
    Cost of a product sold from Pune to Jaipur = Rs.1,100 Cost of a product sold from Pune to Jaipur = Rs.1,100
    Profit = Rs.1,000 Profit = Rs.1,000
    Selling Price = Rs.2,100 Selling Price = Rs.2,100
    CST @ 10% = Rs.210 IGST @ 10% = Rs.110
    Total cost of the product = Rs.2,310 Total cost of the product = Rs.2,210

    GST Calculator - Know GST Bill Rates and Its Calculation

    The GST Bill is touted to be a landmark bill with respect to taxation in India. This Bill is being implemented with the intention of curbing ‘double-taxation’ and irregularities regarding the same. On 29 March, 2017 four bills were approved. The government has set a deadline of 1, July 2017 for the complete implementation of this Bill. A number of products and services would become cheaper and others would become heavier on the wallet. However, instead of the expected single tax slab, a multi-tier tax slab has been put forth with four different tax rates of 5%, 12%, 18% and 28%. The justification behind this multi-tier system is that essential goods and services cannot be taxed at the same rate as luxury products and services.

    However, there are a number of confusions and doubts regarding the calculation of GST on products and the difference that would be made with the implementation of this landmark Bill. It is essential to note that the GST Bill has two components to it - one that is levied by the Centre which is known as CGST or Central GST and the other which is levied by all States known as SGST or State GST. Rates for each would be approved based on revenue and acceptability, among other factors. Except for those goods and services that have been exempted, SGST and CGST will be applicable on all goods and services. Both Centre and States would have jurisdiction for the determination of tax rates and for all taxpayers based on the threshold for products and services that have been prescribed.

    Tax Calculation under GST

    Under the GST regime, manufacturers and dealers can benefit from input tax credit. Below is an example to show the difference in the amount of tax payable under the old tax system and the GST system:

    Value to Manufacturer Old Tax system GST System
    Cost of production Rs.2,00,000 Rs.2,00,000
    Profit Margin of 10% Rs.20,000 Rs.20,000
    Excise duty of 12% Rs.24,000 -
    Total production cost Rs.2,44,000 Rs.2,20,000
    VAT of 12.5% Rs.30,500 -
    SGST of 6% - Rs.13,200
    CGST of 6% - Rs.13,200
    Invoice value for manufacturer Rs.2,74,500 Rs.2,46,400
    Value to Wholesaler
    Cost of goods Rs.2,74,500 Rs.2,46,400
    Profit margin of 10% Rs.27,450 Rs.24,640
    Total Value Rs.3,01,950 Rs.2,71,040
    VAT of 12.5% Rs.37,743.75 -
    SGST of 6% - Rs.16,262.40
    CGST of 6% - Rs.16,262.40
    Invoice value to wholesaler Rs.3,39,693.75 Rs.3,03,564.80
    Value to Retailer
    Cost of goods Rs.3,39,693.75 Rs.3,03,564.80
    Profit margin of 10% Rs.33,969.375 Rs.30,356.48
    Total Value Rs.3,73,663.125 Rs.3,33,921.28
    VAT of 12.5% Rs.46,708 -
    SGST of 6% - Rs.20,035.28
    CGST of 6% - Rs.20,035.28
    Invoice value to retailer Rs.4,20,371.125 Rs.3,73,991.84

    From the example, it's clear that subsuming excise duty is favourable to the end consumer. There is a reduction in cost for manufacturers, wholesalers, and retailers due to the subsuming of VAT, Service Tax, and Excise duty. Due to the reduction in cost, there will be a reduction in input tax credit.

    Tax Calculation for Inter-State Sales

    Integrated GST (IGST) will be levied by the Central Government on inter-state supply of goods and services. In the case of inter-state transactions, IGST will be transferred to importing state. In the old tax system, CST was charged over and above VAT and the excise duty for movement of goods between 2 states. In the GST system, IGST is the only tax levied on goods moving across state borders. Below is an example to understand the IGST system:

    Value to Manufacturer Old Tax System GST System
    Cost of goods Rs.1,00,000 Rs.1,00,000
    VAT of 12.5% Rs.12,500 -
    IGST of 12% - Rs.12,000
    CST of 2% Rs.2,250 -
    Total value to retailer Rs.1,14,500 Rs.1,12,000

    As per the above example, it is clear that under the GST system, manufacturers, wholesalers, and retailers will see reduction in cost whether it is inter-state or intra-state sales.

    Benefits of using GST Calculator

    While implementation of GST will ensure a transparent manner of collecting revenue and improve tax compliance, GST calculator will save time and give instant results. There is low to zero chances of human error when using an online GST calculator to compute the total cost of a good or service. The tool also gives the user an option to either add or remove GST rate from the net price of the product.

    General Benefits of implementing GST in India

    Implementing a single indirect tax is beneficial in many ways such as:

    • It not only helps in setting an international standard but also ensures transparency throughout the tax structure right from the manufacturer to the consumer.
    • The primary objective of implementing GST is to prevent double taxation of commercial goods. GST is expected to ultimately increase competition among the manufacturers and sellers to provide high-quality goods which in turn will boost the GDP of the country.
    • The reduce in tax will bring down the production cost for companies. Thus, increase the competition among exporters.
    • Inflation is expected to decrease after the implementation of GST.
    • It is also said that there will be a decrease in tax liability. Reduction in price is expected as input tax credit is available against output tax. Following taxes will be set-off with the same or with the different tax input credits
    CGST CGST and IGST
    SGST SGST and IGST
    IGST IGST , CGST and SGST

    Changes

    • As observed in the previous examples, there have been changes noted in the type of tax and amount imposed.
    • Excise is generally applicable on capital goods during production used by manufacturer. Under the new Bill, excise on capital goods will be subsumed as there will only be a single rate of tax for each type of product.
    • Due to the subsuming of Service Tax, VAT, Excise, there will be a fall in the cost of wholesalers, manufacturers and retailers. This will in turn reduce the total cost to the manufacturer due to a reduction in procurement cost.
    • There will also be a fall in input tax credit for the retailer/wholesaler under GST.

    Therefore, as observed there will be a fall in prices for the manufacturer. However, changes in GST rates will depend on the products and services.

    Returns of GST for Businesses in India

    Multiple GST return forms have been assigned to taxpayers from multiple sectors in India. The GST Council, in order to render the process of compliance easy has introduced multiple ramifications to the GST Act that originally came into being.

    To get into the core of GST aspects, let us first understand its three primary subparts:

    1. SGST: The State Goods and Services Tax is applicable for sales that are conducted within the state and the revenue for which ultimately goes to the state’s government.
    2. IGST: The Integrated Goods and Services Tax is applicable for movement of goods and sales that are conducted outside the state’s premises and the revenue for which ultimately goes to the federal government.
    3. CGST: The Central Goods and Services Tax is applicable for sales and movement of goods that are conducted within the state and the revenue for which ultimately goes to the federal or the central government.

    Filing GST Returns

    In India, if you want to file your GST return, you will be required to do so on the portal itself. With the modern age of digitisation, it has now become easy to file returns online without any hassles, owing to the Goods and Services Tax Network or GSTN. GSTN is essentially a non-profit entity that offers its impactful information technology to the Indian Government in order for service users to comply with the technicalities with ease. In order to back the implementation of GST in India, this entity was established! When an organisation or a business registers itself online, they are provided with a certain GST Identification Number. This number is vital as it is required at the time of filing returns. If you do not have any returns to file (in case of NIL returns), even then you will be obligated to file your GST returns on a quarterly or monthly basis.

    How Businesses Operate Under the GST Regime

    If you are business owner in India, you will be well aware of the fact that GST has subsumed all the other indirect taxes and has supported the Indian economy’s motto - ‘’One Nation One Tax’’. Having said that, if the yearly turnover of your business is exceeding the amount of Rs.2 million, you will have to register your trade under the GST regime. The turnover amount pertaining to India’s northeastern states stands at Rs.1 million.

    Types of GST Forms

    From GSTR-1 to GSTR-11, there is a wide array of GST forms that multiple sectors need to make use of. Let us look at them in detail.

    1. GSTR-1: This form is used by traders and suppliers to provide information on outward supplies. If you have registered your business under GST, you will be required to fill this form invariably.
    2. GSTR-1A: If the purchaser is making any alterations to the form GSTR-1, those will automatically reflect in GSTR form 1A. These changes are further placed under the verification of the supplier. Upon acceptance of form GSTR-1A, the GSTR-1 is filed.
    3. GSTR-2: When the supplier raises a GSTR-1 form, it is validated by form GSTR-2. GSTR-2 is received as GSTR-2A and upon confirmation it becomes GSTR-2 filed by the purchaser.
    4. GSTR-3: A consolidated version of GSTR-1 and GSTR-2. This form essentially reflects your total tax liability.
    5. GSTR-9: A comprehensive form that reflects all the returns that an individual has made during that year. Information on multiple purchases and sales that include the components of SGST, CGST, and IGST are also mentioned here. If you need to omit a certain point or have missed out on filing a return, you can make use of this form to do so.
    6. GSTR-10: If your GST return has been nullified or cancelled for some reason, you will be required to make use of this form. The timeframe within which you have to file is three months.

    News About GST Calculator

    • Centre refuses to bring petro products under GST

      The party national spokesperson Mr Sambit Patra has announced that the Centre has denied the inclusion of diesel and petrol under the Goods and Services Tax (GST) regime. This announcement was made by him while addressing the press at the sidelines of Party State IT Cell workshop on 9 June 2018.

      Patra said that although the Centre has denied to bring petroleum products under the GST regime, it has indicated that the union government is trying to keep the fuel prices under tab for long term policy basis.

      He further added that the union government is planning a long term policy to keep a check on the petroleum and diesel prices but there are no plans to bring the fuel products under GST regime immediately. Patra said that the Union Minister for Petroleum Dharmendra Pradhan has been consulting various stakeholders to come up with a long term plan to keep a check on the petrol and diesel prices. He also concluded that the prices of petrol and diesel have been fluctuating because of the global instability in the crude oil market and the civil war in Iraq.

      15 June 2018

    • Government clarifies: Here is how GST impacts your money

      The government has issued a detailed document with all the Frequently Asked Questions (FAQs). This step was taken as the application of Goods and Services Tax (GST) in the financial sectors is the point of many confusions. Primarily, because of its complex nature.

      The FAQs issued by the government provides detailed clarification on the application of GST in financial sectors like banks, capital markets, and insurance sectors. The pertinent issues in relation to the industry were clarified such as GST on exit load of mutual funds, loan of one bank taken over by another, additional interest charged in case of default in instalment payment, charges for late payment of dues on credit card outstanding, etc. It also provided detailed clarification on the application of GST on free banking services which are provided to the customers like issuance of new cheque books, ATM withdrawals, etc. There has been a lot of chaos regarding this issue as the banks had received the service tax notices in the month of April in relation to non-payment of service tax, penalty, and interest on the free services extended by them to their customers.

      8 June 2018

    • Special drive to clear GST refunds from today

      A special refund drive has been announced by the Finance Ministry to hasten the process of Goods and Services Tax (GST) related refunds claimed by exporters in the country. The drive starting on 31st May will end on 14th June.

      The announcement was made after the ministry received allegations from exporters that refunds amounting to more than Rs.20,000 crore were pending owing to Integrated Goods and Service Taxes (GST) and Input Tax Credit (ITC). A statement released by the Finance Ministry mentioned that refunds sanctioned in the month of May amounted to Rs.8,000 crore. It also added that the pending dues amount to Rs.14,000 crore (Rs.7,000 crore for IGST and Rs.7,000 crore for ITC) as opposed to the Rs.20,000 crore which has been over-projected by the Federation of Indian Exports Organisation (FIEO) in their press release.

      1 June 2018

    • Revenue authorities take measures to push businesses to file GST returns on time

      The revenue department has been issuing notices to businesses that have not filed tax returns through emails. These emails mandate businesses to submit returns ahead of the deadline.

      The last date for filing the GST summary returns is usually the 20th of the following month. However, it was observed that several businesses file returns after the stipulated deadline by paying penalties.

      The emails sent by the revenue department are auto-generated and can offer a time limit of 3 days to 15 days for filing returns. These notices are expected to bring down the instances of businesses defaulting in filing GST summary returns.

      25 May 2018

    • The number of GST defaulters in Ahmedabad increased by 15%

      According to the latest GST figures, the number of tax defaulters in Ahmedabad has increased by 15%. While 5.53 lakh people got themselves registered under the newly-launched tax policy, during July 2016, 10,598 tax-payers defaulted which accounted for only 1.09% of the overall GST payers. However, by February 2018, the number of the defaulted tax-payers rose to 1.09 lakh accounting for 14.73% against 7.45 lakh of the total number of the GST payers. Moreover, in the month of February, 1.04 lakh of the tax-payers filed no returns indicating that the proportion of the tax-payers in this category was reduced to 26.58%.

      21 May 2018

    • GST for April Stands at Rs.1 Lakh Crore

      According to a statement issued recently, the revenue amount for the month of April has stood at Rs.1 lakh crore. This is evidently the highest that the revenue has shot up to since the Goods and Services Tax was launched in July 2017.

      The Finance Ministry, however, has cautioned the public not to be too optimistic about this change since the rise in the revenue could be because of tax arrear payments that were made for the preceding financial year.

      The gross revenue accumulated for the month of April 2018 has been reported to be Rs 1,03,458 crore.

      17 May 2018

    • E-Commerce Firms Might be Required to Prepare Tax Withholding

      E-commerce platforms such as Amazon and Flipkart may soon need to withhold their taxes within the space of the next two months under the Goods and Services Tax.

      Followed by a petition issued to the industry about increase in the compliance burden, the Tax Deducted at Source or the Tax Collected at source or TCS of these e-commerce companies will soon be put on hold! However, as people become more and more compliant with the provisions and standards of GST, this law is believed to be rolled out on 1 July 2018.

      The mandate for TDS provision essentially states that companies have to deduct a GST of 1% and on Central GST, the rate will again be 1%. This is however only pertaining to sales and purchases that exceeds the amount of Rs.2.5 lakh.

      16 May 2018

    • CBI Expected to Receive Gutka Case Diary from IT Department

      What is considered to be one of the biggest fraudster cases to ever have been committed, the gutka diary case is now being transferred to the Central Bureau of Investigation to further probe in to the matter.

      Involving important officials and ministers, the Madras High Court evidently made the transfer this month to allow CBI’s intervention into the matter! The most important investigation agency in India is now expected to register fresh cases and evidences in this matter. Even though no concrete evidence has been extracted, a CBI official was recently reported saying that new developments are not far off from surfacing themselves!

      A new team of CBI inspectors have been consulted with which is lead by the superintendent of police. A joint director is heading the entire team in this regard and they are believed to begin their probing at the earliest. The IT department has handed over the diary involved in the case along with any such evidence that might be relevant to the case.

      4 May 2018

    • Hospitality Domains Survived GST Well

      The disruption caused by the Goods and Services Tax regime has fortunately been taken well by the hospitality sector in India. Earlier, demonetisation was also part of why all major sectors in India experienced issues of compliance with the new tax law.

      JLL Hotels was recently quoted saying that “Coming on the back of demonetisation at the end of 2016 and GST (Goods and Services Tax) implementation in 2017, new hotel brand signings were expected to slow down, but the sector has weathered the storm well,”.

      According to a hospitality report survey conducted recently, the conditions and circumstances of the hospitality sector have improved measurably from the year 2016. It is a noteworthy observation here that demonetisation was implemented in the year 2017, hence the financial scenario for this particular sector has definitely hiked in a large number! The sector is believed to have signed 173 agreements, as compared to 170 in 2016.

      This hike is also attributed to the fact that businesses had a comparatively higher demand this year as compared to the preceding years.

      25 April 2018

    • Full Implementation of GST Required to Stabilise the Economy: IMF

      The International Monetary Fund recently made a statement commenting on the financial situation of India describing it as developing and still has a long way to go.

      It further said that in order to minimise tax revenue underperformance and boost the economy, the indirect tax (GST) needs to be implemented nationwide without leaving any scope. Further, it also said that the financial consolidation in India underwent a brief hiatus during FY 2017-18 at the federal level. This happened because of the continuous financial struggles that the country had to grapple with for a long time. Examples in this regard are demonetisation and GST.

      23 April 2018

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