Calculate GST (Goods & Service Tax)
Calculate GST Amount, CGST, SGST, Total Production Cost, Profit Ratio
What is GST Calculator?
A GST Calculator is an automatic online calculator that is specially made for computing the GST amount. Whether you are a buyer, manufacture or wholesaler, you can easily access it, choosing the correct type.
What is GST?
Before acquiring knowledge about GST calculator and its uses, let just understand how GST works. GST or goods and services tax is basically a non-direct tax that is imposed by central government. It is a single unified taxation system throughout the country on a particular product or services. Further in India, GST is divided into three broad categories, SGST or State GST, CGST and IGST.
Let’s have an example of CGST and SGST. Suppose a buyer and a seller both are living in the same state. And the GST slab is 12%, now state will impose 6% as SGST and the centre will impose 6% as CGST. Then there is IGST or integrated GST.
IGST is collected by central government for interstate supply of goods and services when the seller and the buyer are from two different states. In India GST was implemented on July 1st, 2017. The tax rate or tax slab is assigned by GST council and the rate is ranging from 0% to 28%.
So, we have a basic idea of GST, now calculating GST is a complex procedure and time consuming if any person wants to calculate it manually, all by himself. To lower the burden, GST calculators are being used in the market.
Advantages of using GST Calculator :
- Hassle free
- Saves a lot of time
- Simple mechanism to use
- Chances of human error is least
- Single handed operational.
GST Calculator Formula
GST amount = (original product price x applicable GST rate)/100
consumer price = original amount + GST amount.
Le us understand it with a simple example, assume the price of a particular goods, one color TV is 20,000rs. Now TV is under the 18% GST rate slab. So applicable GST amount will be 20000 x 18/100= 3600. Thus the consumer have to pay = 20000+3600= 23600rs. Hope this simple illustration can make you understand how the GST formula works.
In order to remove GST from base amount,
GST Amount = Original Cost – (Original Cost * (100 / (100 + GST% ) ) )
Net Price = Original Cost – GST Amount
What is GST Inclusive & Exclusive amount?
GST inclusive amount means to the total value of the product or service after including the GST amount with the original value of the product. If the product or service is GST inclusive then the tax is not charged separately from the customer & in the other hand, GST Exclusive amount means that the GST amount is not including with the origianl value of the product.