Goods and Service Tax (GST) is essentially an indirect tax which is to be paid by wholesalers, retailers, manufacturers, and consumers on the sale and/or consumption of  services and goods. This multi-stage tax is destination-based and is chargeable on every value-addition. It has replaced all indirect taxes such as central excise duty, service tax, customs duty, VAT, Octroi, and surcharges, on July 1, 2017, to simplify the taxation process for businesses.

Calculate Your GST Amount Online in India

A GST calculator can help an individual determine the gross or net price of the product after accounting for the GST, which must be expressed in percentages. It has proven to save a lot of time for the parties involved and reduces the chances of human error while simultaneously computing the overall GST on goods and services.

How is GST calculated?

With the unified taxation system, it is now possible for taxpayers to know the tax levied at different points for various goods and services under the GST regime. For GST calculation, the taxpayers can learn about different GST rates applicable on different categories that fall under the new tax structure. The different applicable GST slabs are: 5%, 12%, 18%, and 28%.

GST calculation can be explained by a simple illustration given below

Let’s assume that a product is sold at ₹1,000 and the applicable GST slab is 18%.

Then, the net price of the product becomes, 

₹1,000 + (1,000x(18/100)) = ₹1,000+180 = ₹1,180

GST Calculation Formula

The following GST calculation formula enables businesses, manufacturers, wholesalers, and retailers to conveniently calculate the net price of the product after applying the GST.

• Simple GST Calculation

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

Net price = original cost + GST amount

• In order to remove the GST

GST amount = Original cost - [Original cost x {100/(100+GST%)}] 

Ergo, Net price = Original cost - GST amount

The following tables demonstrate the manner in which goods and services were taxed in the pre- as well as the post-GST era for manufacturers, wholesalers, and businesses alike.

1. Calculation of GST for Manufacturers

2. Calculation of GST for Wholesalers and Retailers

How to use GST Calculation Tool?

With a professional GST calculator, anyone can easily calculate their GST. Even taxpayers who wish to calculate GST with the differential GST rate can use the tool. Given below are the steps to follow when calculating GST with the help of a GST calculation tool:

• Step 1: Select ‘GST Inclusive/GST Exclusive’ as per the requirement.

• Step 2: Enter the original amount.

• Step 3: Select the GST rate from the drop-down menu list.

• Step 4: Hit ‘Calculate’ to check the results. 

The result will display the total GST amount and pre-and post-GST amount as per your requirement.

Overall, the GST calculation process demonstrates how easy the calculation of the tax liabilities has become since the implementation of the regime in question. Additionally, you can see how one is now paying much lesser tax over the goods and services that manufacturers provide. The same is the courtesy of the subsumption of the various indirect taxes, which also made the calculation of the overall tax liabilities tricky for the parties involved. You can now compute the total GST that you are liable to pay fairly swiftly through the GST calculator tool available on Bajaj Markets!