GST, which relates to Goods & Service Tax, is an indirect tax reform that essentially seeks to eliminate tax barriers between states and to create a single market that is open to all to purchase, sell, import, and export within the world. It is built exclusively and has a class within it that offers traders economic independence. 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, which contributed to the “ONE NATION ONE TAX” system. Use our GST Free Online Calculator To Calculate Your GST Amount
GST is categorized into five separate tax levies for tax collection – 0 percent, 5 percent, 12 percent, 18 percent, and 28 percent. Before GST there was a massive ambiguity about the applicable tax rates for different products, but GST implemented HSN code (4-8 digit code) which helps to decide the applicable GST rate for different products. The nation is split into two parts, one is the state where your company is based and the other half is made up of the other states of India.
How To Calculate GST?
We do know about the five different slab rates that relate to different items. Now, let’s see “How do you add these tax rates to the value of the commodity in order to measure the GST payable? ”
Let us take an example for this purpose:
Before I tell you, please grasp the following two terms:
I Taxable Amount (excluding GST)-The value to which GST applies, i.e. the value to which GST is not paid and applied up to now, and we are allowed to charge GST on that value.
- 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: because the sum is exclusive to GST, insert the taxable value here, i.e. the real price of the commodity without GST. It will send you the number of GST & POST-GST, i.e. after the inclusion of the GST.
GST Inclusive: because this number contains GST, insert the balance of the invoice here, i.e. the price of the goods after the inclusion of GST. It will send you the number of GST & PRE-GST, i.e. after deducting the GST.