Calculate GST Easily with Our Online GST Calculator

As per the new tax structure, you can learn about different GST rates applicable to different categories –

• 0%
• 5%
• 12%
• 18%
• 28%

These GST rates are necessary to consider while calculating GST.

Different Tax heads under GST

The GST is categorized into four different sections –

• State Goods and Services Tax (SGST)
• Central Goods and Services Tax (CGST)
• Union Territory Goods and Services Tax (UTGST)
• Integrated Goods and Services Tax (IGST)

Central and State Governments are called Central GST (CGST) and State GST (SGST), respectively, and they levy indirect tax. The buyer will be responsible for paying taxes to the Central Government and the State Government in the case of intra-state sales. Below is an example of such type of GST, which shows the impact of GST on product pricing:

GST Calculation Formula

For calculating GST, the following formula can be used by the taxpayer. The following formula helps calculate the product’s net price after applying and before GST.

1. Add GST:

Here, the GST amount is calculated for the applied rate –

GST Amount = (Original Cost x GST %)/100

So post-GST applies, the Net price is the Original Cost + GST Amount.

2. Remove GST:

To determine the actual cost of the product or service, the following formula is used –

GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}]

After the removal GST rate, the Net price = Original Cost – GST Amount.

Let’s assume a product is sold for Rs. 2,000 and GST applicable is 12 %. After that, the product’s gross price will be recalculated to be 2,000 rupees plus 12% of 2,000 rupees. So after the add GST formula, this comes out as Rs. 2,000 + Rs. 240 = Rs. 2,240.

Method to use Online GST calculator tools:

Several online websites provide online GST calculators for the ease of users.

• Choose the option that is appropriate for the user’s needs between “GST inclusive” and “GST exclusive.”
• Enter the original amount of the product.
• Select the GST percent rate applicable to the product.
• Click on the “Calculate” option to calculate the final amount of the product.

Merits of GST:

Following are some of the advantages of implementing GST on products. Implementing a single indirect tax has its own described benefits:

• This tax structure helps maintain an international standard. It also helps in ensuring transparency between the manufacturer and the consumer.
• The main motto behind GST implementation is eradicating double taxation on commercial goods. It promotes competition among manufacturers and sellers to provide high-quality goods, which in turn helps boost the country’s GDP.
• Tax reduction brings down the production cost for manufacturers, increasing competition amongst exporters.
• After the implementation of GST, the most vital issue of inflation in the market is assumed to decrease.
• It is also believed that there will be a decrease in tax liability. A price reduction is expected as input tax is available against output tax.

Taxes will be a set-off with the same or different tax input credits:

• CGST
• CGST and IGST
• SGST
• SGST and IGST
• IGST
• IGST, CGST and SGST