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  • 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

    • Experts say, new tax appeal rules will bring down litigation

      After the announcement of the new tax appeal rules, tax experts came up with the opinion that the higher the threshold will be set by the finance ministry for filing appeals over tax disputes, the lower will be the load on the tribunals and courts. It will help to reduce the litigation and also free up officials who would be able to focus and work on high value cases. They also added that this move will help reduce the cost of tax dues recovery and improve the ease of doing business in the nation at the same time. After the launch of the new tax appeal rule, Arun Jaitley said in a tweet that this move will lead to the revenue department withdrawing 29,580 appeals before various platforms. He added that this move reduces litigation by 37%.

      The increase in the threshold for filing appeals in the case of the Supreme Court is the sharpest with an increase from Rs.25 lakh to Rs.1 crore. In the case of tribunals, the threshold has doubled from Rs.10 lakh to Rs.20 lakh. The same for high courts has increased from Rs.20 lakh to Rs.50 lakh.

      16 August 2018

    • GST Council to consider rate cut on items with low revenue impact

      A reduction in the tax rates of a number of items might be considered by the Goods and Services Tax (GST) Council in their upcoming meeting on 21 July 2018. The items that have been shortlisted are those with low revenue impact. This decision has been taken as a part of the tax rationalisation exercise of the Council. Some of the items that could be considered for the reduction of tax rates might possibly include handicrafts, sanitary napkins, and handloom goods. Certain services might also come under the tax rate cut.

      A number of stakeholders and industry bodies have been constantly demanding the duty cut on items. Most of the item are linked to general health and employment generation in unorganised sectors. An official said that the Council will be taking the demand of the stakeholders under consideration and will take up the issue of rationalisation of taxes on a number of goods and services. The official also added that the main focus will be on the items and services that are up for general consumption and have a low impact on the revenue. The current rate at which the Goods and Services Tax (GST) is charged on handloom products, sanitary napkins, and handicraft products is fixed at 12%. Under the GST ambit, there are 4 tax slabs. They are 5%, 12%, 18%, and 28%. The Goods and Services Tax (GST) was rolled out last year the month of July and it had subsumed more than a dozen local taxes and other charges that were levied on goods and services.

      8 August 2018

    • One year of GST: A mixed impact on hotels and restaurants; further rationalisation required

      The Goods and Services Tax (GST) had a mixed effect on the hospitality and restaurant sector. The firms are expecting further rationalisation of the tax structure. The president of the Federation of Hotel and Restaurant Associations of India (FHRAI), Garish Oberoi opined that the initial days after the rollout of the Goods and Services Tax (GST) were full of confusion. He addressed the PTI saying that while they were anticipating that hospitality will be kept under one slab of taxation, it was found out that the hospitality sector was kept under all the slabs from 0% to 28%. However, he added that it is not the right time to judge the effect of the Goods and Services Tax (GST) on the hospitality and restaurant sector. The real impact of GST on the sector can be ascertained on a future date. He also said that the sector will wait for further rationalisation of the GST mechanism.

      Oberoi also pointed towards the fact that the implementation of the new indirect tax regime on the hospitality and restaurant industry has also affected the international high-end meetings, incentives, conferences, and events (MICE) business in an adverse way. In case of the restaurant industry, the rate reduction of 5% has been positive. However, the input credit has affected many restaurants, especially in the metros. The president of Hotel and Restaurant Association of Western India (HRAWI), Dilip Datwani said that there were a number of grey areas which lead to a number of uncertainties. However, they were clarified and resolved by the GST Council over time.

      20 July 2018

    • Govt may not implement reverse charge mechanism under GST: Report

      The Goods and Services Tax (GST) has recently completed a year of its implementation. However, the government is going slow in terms of rolling out the reverse charge mechanism. The reverse charge mechanism is an anti-evasion measure which was proposed under the newly implemented tax regime earlier. In the view of the government, the reverse charge mechanism is unlikely to offer noteworthy revenue gains and could affect the small businesses. Nevertheless, according a new report, the government is exploring for an alternative mechanism to stop tax evasions.

      As per the provisions of the reverse charge mechanism, arrangements are made in a way in which the entities who are registered under the Goods and Services Tax regime will have to pay a tax on behalf of small unregistered dealers when the former is buying goods from the latter. The government is doubtful about the advantages of implementing the reverse charge mechanism. In its opinion, the implementation of the mechanism might disrupt the small businesses and might not even boost the revenue collection to a significant level. While addressing a publication, a senior government official said that they want to check the effectiveness of the mechanism in terms of checking the tax evasion and collecting revenues before implementing it.

      11 July 2018

    • GST: India’s big tax reform paying off, but budget hole fears stay

      There have been mixed results after the completion of a year since a new consumption tax was rolled out in India. The Goods and Services Tax (GST) has been one of the biggest reforms in the history of India. It has helped increase tax collections in a country where the compliance has always been low.

      However, the monthly receipts are not strong enough to meet the government’s annual tax target in spite of having picked up after the chaotic rollout. As per the government data reported in the months of April to June, the Goods and Services Tax (GST) has brought in an average Rs.97,540 crore revenue per month. The target for the same time period set by the government was Rs.1.1 lakh crore.

      Prime Minister Narendra Modi is preparing to spend on welfare programs ranging from health to farming before the general elections of 2019. However, to be able to spend that kind of money, India will have to keep its budget deficit in check. The government has already widened its deficit goal for the current fiscal year from 3% of the gross domestic product to 3.3%. This decision has put up pressure on bond yields. There might be signs of improvement. Finance Minister Piyush Goyal recently said that the government is expecting the tax collections to improve during the rest of the year and it will probably end up with a tax collection of Rs.13 lakh crore from GST.

      6 July 2018

    • Goods and Services Tax: Many issues still unresolved

      The newly implemented indirect tax regime, the Goods and Services Tax (GST), completed a year of its rollout on 1 July 2018. Although most of the initial problems have been settled down, there are still some problems that are yet to be solved. The technical snag, uneven tax slab at 28%, long waiting periods at e-way bill clearance points and delays in refunds to the exporters prove that the agenda of the ‘One Nation, One Tax’ is yet to be finished. Finance Secretary Hasmukh Adhia said in this regard that the government has successfully crossed the first hurdle and now they will be going forward to resolve the other issues step by step.

      Most industry leaders and experts have also shared the same view that the launch of the Goods and Services Tax (GST) has been more or less successful. However, they have unanimously agreed to the fact that the main aim of the government in the upcoming months will be to ensure fewer tax slabs, smoother operation of refunds, and less complicated paperwork. The inclusion of petrol and diesel prices under the GST regime will also be one of the primary targets.

      4 July 2018

    • Rs.2,000 crore GST evasion unearthed in 2 months

      A senior official recently said that the Goods and Services Tax (GST) investigation wing has detected tax evasions of more than Rs.2,000 crore in 2 months. He added that the data analysis reveals that only 1% of over 1.11 crore registered businesses pay about 80% of the taxes.

      A member of the Central Board of Indirect Taxes and Customs (CBIC) John Joseph said that multinational companies and large-scale companies are making mistakes while GST returns just like small-scale businesses.

      John Joseph, who is also the Director General of Goods and Services Tax Intelligence (DGSTI), said that the analysis date of composition dealers portrays a picture which shows that most of the dealers have a turnover of less than Rs.5 lakh. In regards to this issue, he said that a lot of compliance will be required. While restaurant owners have to pay taxes at a rate of 5%, traders and manufacturers are allowed to pay taxes at the rate of 1% under the composition scheme. The scheme is applicable only for traders, manufacturers, and restaurant owners whose turnover is not more than Rs.1.5 crore.

      3 July 2018

    • With 90% tax on petrol and diesel, bringing them under GST is impractical: NITI Aayog Vice Chairman (IANS Interview)

      Petrol and diesel is a major source of tax for the central and state governments and thus it is unlikely to be brought under the Goods and Services Tax (GST) regime any time soon. In spite of several senior ministers demanding the inclusion of petrol and petroleum products under GST, the NITI Aayog Vice Chairman, Rajiv Kumar has put forward this view.

      Kumar said that petrol and diesel cannot be brought under the GST regime as the total state and central taxes levied on them are around 90%. In an interview with IANS, Kumar said that he does not see the practicality of this decision as the states are highly unlikely to take such a huge cut. He added that the highest rate under GST is 28% and introducing a new GST band will be a mammoth exercise. Kumar said that although he supports the idea of bringing all items under the new ‘One Nation, One Tax’ system, he thinks that people who are talking about the implementation of GST on petrol and petroleum products now have not thought through the process.

      2 July 2018

    • GST-Affected Solar Projects Receive Extension for Commissioning Date by MNRE

      An order has been issued by the Ministry of New and Renewable Energy to extend the commissioning date of PV projects that got affected following the implementation of GST. The authority has taken a decision to extend the commissioning date by a couple of months so that the projects that suffered earlier because of the disruption can get back on track. The extensions have been granted to developers by National Thermal Power Corporation and Solar Energy Corporation of India among other implanting agencies.

      26 June 2018

    • One year of GST: For export-oriented IT industry, challenges remain around refunds

      The IT/ITES industry holds an important place in the future business environment. The sole reason is that business is becoming more and more dependent on globalisation and digitisation. As per the Economic Survey 2017-18, the IT/ITES services industry has scaled to around $140 billion during 2016-17.

      At present, India is the top outsourcing destination and accounts for more than half of the market share. According to IBEF, the IT/ITES industry is a key employment generator which creates around 1.3 lakh to 1.5 lakh new jobs every year. The industry has also contributed around 7.7% of the country’s GDP.

      22 June 2018

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