• 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


    • 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.

    News About GST Calculator

    • Anti-Profiteering Laws Strengthen Post GST Implementation

      The National Anti-Profiteering authority sprung into action immediately after the implementation of GST. The Government fortified anti-profiteering laws, and sent out notices to multiple organisations for violating the rules, allegedly. This incident happened second time in a row.

      Three of the biggest names of the market have been placed under careful scrutinization since the establishment of the Anti-Profiteering Authority. The first one is Hardcastle Restaurants that is currently running the McDonald’s food chain across India, the second company is Lifestyle, which is a clothes and accessories store and the third one is a merchant (stockist) for FMCGs, the famed Hindustan Unilever (HUL).

      Concerning this matter, the Government received multiple complaints from all over the country wherein consumers expressed their distress at not being able to completely utilize the cut in tax rates.

      Additionally, the Government is all set to roll out the electronic-way bill system (e-way bill) on February 1st. This is a major breakthrough that will help curb the loss of revenue, owing to illegal transport of goods between states.

      12th January 2018

    • GST Collections in December Decrease to Rs.80, 808 Crore

      Things don’t look good for the Indian government as the leniency in introducing the Goods and Services Tax in addition to recent declines in rates has seen receipts drop further in December 2017. The overall GST receipts of the state as well as Central Government, inclusive of taxes on inter-state supplies and cess on particular commodities, came up to Rs.80, 808 crore in the last month of the year. The results recorded in December show a decline of 14% in comparison with the results recorded in August. In comparison with November’s receipts, the figure indicates a 3% drop.

      11th January 2018

    • Financial Alterations of 2017 & Wisdom for 2018

      The year 2017 brought along a wave of financial changes and the establishment of an era of norms such as GST and demonetisation. As the year gradually unfolded, a series of financial events disrupted the functioning of personal finances. The Budget of 2017 came along with reduced tax rates for individuals falling under the lowest income tax slab. The percentage descended to 5% from 10%.

      The year 2017 also witnessed revision of the penalty fee for delayed filing of (IT) returns by people. Another financial disruption was a cut in the interest rate of savings schemes. Schemes like KVP, PPF etc witnessed a marginal cut on their interest rates.

      With the implementation of GST, banking and insurance services have started to attract a tax rate of 18%. On-site construction activities have begun pulling a 12% GST, rendering ready-to-move in properties feasible. The most crucial financial development of 2017 was Aadhaar card’s emergence as a leader in the market. The Supreme Court’s order to extend Aadhaar linking date to March 31, 2018 came as a breather.

      Protips for 2018: Calculate taxes accurately during the FY 2017-18. Save your penalty amount by filing ITRs on time. Link Aadhaar to all necessary portals.

      10th January 2018

    • Income Tax Slabs for Financial Year 2017-18

      In the 2017 Budget, there was no change in income tax slabs and rates, but the government did offer a rebate of up to Rs.2,500 for taxable salary up to Rs.3.5 lakh. Here are the income tax slabs for FY 2017-18 for the different age groups:

      Slabs for Individuals up to 60 Years of Age

      Income Tax
      Up to Rs.2.5 lakh Nil
      Rs.2,50,001 to Rs.5 lakh 5%
      Rs.5,00,001 to Rs.10 lakh 20%
      Above Rs.10 lakh 30%

      Slabs for Individuals Between 60 and 80 Years of Age

      Income Tax
      Up to Rs.3 lakh Nil
      Rs.3,00,001 to Rs.5 lakh 5%
      Rs.5,00,001 to Rs.10 lakh 20%
      Above Rs.10 lakh 30%

      Slabs for Individuals Above 80 Years of Age

      Income Tax
      Up to Rs.5 lakh Nil
      Rs.5,00,001 to Rs.10 lakh 20%
      Above Rs.10 lakh 30%

      Individuals who earn an income between Rs.50 lakh and Rs.1 crore will be subject to pay surcharge of 10% with marginal relief, while individuals whose income exceeds Rs.1 crore will have to pay surcharge at 15% with marginal relief.

      A rebate of 15% can be availed by individuals whose taxable salary is under Rs.3.5 lakh, and education and higher education cess will be charged at 3%. 

      2nd January 2018

    • Government Taking Action Against Firms Who Did Not Pass GST Benefits On to Customers

      It has hardly been two weeks since the National Anti-Profiteering Authority was formed by the Indian Government. Two companies – a real estate developer and a car dealer, whose names shall remain undisclosed, were issued notices from the government for not passing on the benefits of lower GST rates on to their customers. One of the top officials from the National Anti-Profiteering Authority said that companies were asked for all of the documents, such as procurement and sales details and balance sheets so that the matter can be further investigated. The investigation is expected to be concluded within three months and the report will then be submitted to the National Anti-Profiteering Authority. The investigative arm of the Revenue Department – the Directorate General of Safeguards has commenced the investigations for both companies.

      3 January 2017

    • Senior Executives with US Bank Accounts to be Targeted by IT Department

      The Income Tax Department has begun taking action on the data that the United States and India are sharing under the US’ FATCA (Foreign Account Tax Compliance Act). Enquiry notices have been sent to individuals who have bank accounts in the United States, possibly opening them up to prosecution for concealing black money abroad. The individuals who have received these letters include a top executive at an MNC who recently transferred back to India. The man, who shall remain unnamed, has been requested for an explanation with regard to dividends he received in the US Bank account. A number of other executives with some financial footprint in the United States have also been the recipients of such letters from the Directorate General of Income Tax.

      11 December 2017

    • Final GST information can increase GDP in Second Quarter

      Tax experts and government officials are of the opinion that the Goods and Service Tax (GST) may have an instant effect on the economic progress of the country.

      The fiscal quarter and the launch of GST happened almost during the same period. This helped in increasing the gross domestic product (GDP) of the nation from 5.7%, which was recorded last quarter to 6.3% this quarter.

      Companies are regularly in touch with tax processes and hence, they are aware of their appropriate tax liability. Therefore this helps in having proper tax collections that are aligned with what is expected by the tax department.

      7 December 2017

    • Suvidha Kendras to be Set up by BSNL and Masters India to Solve GST Problems

      BSNL has partnered with Masters India in an effort to ensure that the GST compliance increases. Both companies have come together and set upGST Suvidha Kendras across India. The main intention behind the move was to ensure that there was some kind of relaxation in GST Compliance especially for those residing in tier II and tier III cities. A team of subject matter experts and chartered accountants are powering these Suvidha Kendras, so people can be sure that all their questions and queries will be answered. A mobile application has also been released by the organisation, and it can be downloaded from the Google app store. It allows people to create digital invoices on the move, so that GST invoices can be created with ease and returns can be filed in a simple and hassle-free manner.

      4 December 2017

    • Commodities and Services Purchased Online May Attract Tax

      E-commerce purchases might soon start to attract GST due to the Government’s aim to diversify its tax base in an effort to make the most of the value offered by this quickly growing sector, according to experts. In essence, this might translate to getting prominent e-commerce players to complete their GST registration in India if they are selling to consumers in Singapore. It could also mean getting the customers to pay GST on whatever they purchase online. E-commerce is likely to soon fall under the local tax regime.

      28 November 2017

    • Online service providers dissatisfied with latest decisions of GST Council

      The GST Council has recently given exemptions from GST registration to small “home service” providers. In spite of this, these bodies are not completely satisfied with the decision of the council.

      They claim that the exemption is applicable only to individuals working as electricians, carpenters, plumbers, etc. The exemption is not applicable to e-commerce giants such as Amazon and Flipkart, as it includes only vendors with annual turnover below Rs.20 lakh. Vendors such as UrbanClap, Quikr, and Housejoy would benefit greatly from this decision.

      Tax experts are of the opinion that the exemption offered to online portals will help these businesses in competing with their offline counterparts.

      28 November 2017

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