GST is classified as five separate tax collection levies – 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent. Before GST, there was significant confusion as to the applicable tax rates for different products, but GST introduced the HSN code (4-8 digit code) which helps to decide the applicable GST rate for different products. The country is divided into two parts, one of which is the state where your business is headquartered and the other half of which is made up of the other states of India.
GST, which relates to Goods & Service Tax, is an indirect tax reform that effectively attempts to eliminate tax barriers between states and to create a single market that is available to all to purchase, sell, import and export across the world. It is built exclusively and has within it a class which gives traders economic freedom. Until GST, there were more than 17 indirect taxes, but GST subsumed all of them and became a single indirect tax for the entire country, contributing to the ‘ONE NATION ONE TAX’ scheme. Use our GST Free Online Calculator To Calculate Your GST Amount
How To Calculate GST?
We know of the five different slab rates that apply to different products. Now, let’s see, “How do you add these tax rates to the value of the commodity to measure the GST payable?”
Take, for this reason, an example:
Before I tell you, please grasp the following two terms:
I Taxable Amount (excluding GST)-The value on which GST relates, i.e. the value on which GST has not been charged and applied up to now, and we are entitled to charge GST on that number.
- ii) Invoice Value (including GST)-The cumulative amount of the taxable value + the amount of the GST.
Mr. A, who lives in Aligarh bought a nice from a nearby dealer worth Rs. 100. Now Rs. 100 is the taxable amount, and we have to charge GST for that value. Suppose this commodity attracts 18 percent of GST. Thus the sum of GST = 100*18 percent = 18. As it is part of the state procurement, so
CGST=9 percent, i.e. Rs. 9 percent.
SGST=9 percent, i.e. Rs. 9 will apply.
Currently, if Mr. A had bought it outside C.G., it would have attracted IGST, i.e. a single tax of Rs.18. Accordingly, the overall amount that Mr. A will have to pay to the shopkeeper is Rs.100 + Rs.18 = Rs.118.
Reverse GST Estimation from Invoice Meaning
Suppose you bought a plastic bottle from the Rs.100 supermarket, including the GST valued at 18%. Now, if you want to measure the amount of GST you paid for it, use this formula –
[100 X (Tax Rate/100+Tax Rate))
In other words, GST= [100 x (18/118)] = Rs. 15.254
Taxable worth, i.e. value excluding GST = Rs.100-Rs.15.254 = Rs.84.745
How to use the GST Calculator
Since the above calculation procedure is a little bit complicated and frustrating, we’ve made it simple for you.
Measures to use this calculator –
First of all, pick the exclusive/inclusive GST as appropriate.
Please enter the original number.
Select the appropriate GST rate from the drop-down issued.
To get the results, click Measure GST.
GST Exclusive: since the amount is exclusive to GST, enter the taxable value here, i.e. the actual price of the products without GST. You will be sent the GST & POST-GST number, i.e. after inclusion of the GST.
GST Inclusive: since this amount includes the GST, enter the balance of the invoice here, i.e. the price of the products after the addition of the GST. You will be given the GST & PRE-GST number, i.e. after you subtract the GST.