GST Calculator

Make Use of GST Calculator for Goods and Services Tax

Goods and Services Tax is the indirect tax collected on sales, manufacture, and consumption of goods and services at a national level. GST acts as the substitute for all indirect charged by central Government and State Government. It incorporates multiple taxes like VAT, Service Tax, CST, Excise, Entertainment, and luxury.

GST Calculation Formula:-

Calculation of GST is not too difficult as its formulae are simple and easy as well. For the calculation of GST tax all you are required to do is to enter the exact value of the products or the services and GST rate (5%, 12%, 18%, 28%) applicable as well. After entering the following information under the tool just click on the ‘calculator’ button. GST payment

  • To add GST: GST Amount=(original cost x GST%)/100

Net price= Original cost + GST amount

  • To remove GST: GST Amount= original cost-[original cost {100/ (100+GST %)}]

Net price= Original cost – GST amount

CGST (CENTRAL GOODS AND SERVICE TAX):- CGST is the centralized part of GST that incorporates the present central taxations and imposes Central sales tax, Central Excise Duty, Services Tax, Excise Duty under Medical and Toiletries Preparation act, Additional Excise Duties, Additional Customs duty and other centralized Taxations

The revenue collected under CGST belongs to the central government.

SGST (STATE GOODS AND SERVICES TAX):-SGST includes the consolidation of Entertainment Tax, Levies on Lottery, Entry Tax, Octroi Tax, State Sales Tax and other taxations related to the movement of commodities and services under state authority.

The revenue collected under SGST belongs to the State Government.

IGST (INTEGRATED GOODS AND SERVICES TAX):-This is charged on the supply of commodities and services from one state to another state.

GST Slabs

GST rates
There are different GST slabs – 5%, 12%, 18%, and 28%. All f these GST rates are levied accordingly on the products or the services we purchase for. The GST Slabs states the recent update of the GST in an effective way. In January 2018, GST rates have decreased from 28% to 18%. Eating out has now become cheaper and best as the rates of GST have decreased a lot.

Benefits of using GST Calculator

GST calculator serves with major benefits and is easy to be understood as well. Here I am lighting up few points that may help you know what major benefits we can get using GST calculator:

  • Throughout the tax structure, GST ensures the transparency and also sets an international standard.
  • After implementation of the GST, the inflation is surely expected to decrease.
  • It actually prevents double taxation system from the commercial goods.
  • It would increase the chances of a decrease in the liability of tax.
  • It may decrease the production cost and may increase the competition among the exporters.

According to the Tax experts, the implementation of Goods and Services Tax is surely going to get an instantaneous effect on the growth of Economy. The cost of the goods or the services that you purchase can be calculated by just implementing the GST formulae that is easy and simple to be understood.

Categories: GST