GST Calculator

Goods and Services Tax (GST) calculator helps you to calculate GST of India.

Goods and Services Tax (GST) Calculation Details

Goods and Services Tax (GST) :

GST is the Goods and Services Tax levied by the government of India on the manufacturers, sellers, and consumers of consumer goods and services at the national level. It is based on the principle of Value Added Tax (VAT). As GST is levied on value addition at each stage, a consumer has to pay only the GST charged by the last dealer or supplier in the supply chain.

Implementation of GST has affected various aspects of a business operation ranging from product pricing to tax compliance. This is where the online GST calculator comes in handy. The cost of goods and services can be calculated using an online GST calculator that is available on many third-party websites.

GST Tax Calculation Formula :

All one needs to do is input the net amount of a good or service and the applicable GST rate (5%, 12%, 18% or 28%) into the tool. Click on the 'Calculate' button and instantly get the gross price of the good or service.

Formula for GST calculation:

Add GST :
  • GST Amount = (Original Cost x GST%) / 100
  • Gross Amount = Original Cost + GST Amount
Remove GST :
  • GST Amount = Original Cost - [Original Cost x {100 / (100 + GST%)}]
  • Gross Amount = Original Cost - GST Amount

 GST Tax Calculation Example :

Supose, amount is Rs. 5,00,000. Rate of GST is 10%. The calculation of add and remove GST calculation is as below

Add GST :
  • GST Amount = (Rs. 5,00,000 x 10%) / 100 = Rs. 50,000
  • Gross Amount = Rs. 5,00,000 + Rs. 50,000 = Rs. 5,50,000
Remove GST :
  • GST Amount = Rs. 5,00,000 - [Rs. 5,00,000 x {100 / (100 + 10%)}] = Rs. 45454.55
  • Gross Amount = Rs. 5,00,000 - Rs. 45454.55 = Rs. 454545.55

 Benefits of GST Bill implementation :

  • The tax structure will be made lean and simple.
  • The entire Indian market will be a unified market which may translate into lower business costs. It can facilitate seamless movement of goods across states and reduce the transaction costs of businesses.
  • It is good for export oriented businesses. Because it is not applied for goods/services which are exported out of India.
  • In the long run, the lower tax burden could translate into lower prices on goods for consumers.
  • The Suppliers, manufacturers, wholesalers and retailers are able to recover GST incurred on input costs as tax credits. This reduces the cost of doing business, thus enabling fairer prices for consumers.
  • It can bring more transparency and better compliance.
  • Number of departments (tax departments) will reduce which in turn may lead to less corruption More business entities will come under the tax system thus widening the tax base. This may lead to better and more tax revenue collections.
  • Companies which are under unorganized sector will come under tax regime.

 Challenges for implementing Goods & Services Tax system :

  • The bill is yet to be tabled and passed in the Parliament.
  • To implement the bill (if cleared by the Parliament) there has to be lot changes at administration level, Information Technology integration has to happen, sound IT infrastructure is needed, the state governments has to be compensated for the loss of revenues (if any) and many more..
  • GST, being a consumption-based tax, states with higher consumption of goods and services will have better revenues. So, the co-operation from state governments would be one of the key factors for the successful implementation of GST.

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