Online GST Calculator : Explained

GST Calculated Online Using Various Tax Slabs

Searching for the best method to calculate GST under the numerous slabs? Read this blog!

Since GST has been introduced, it has been left to the consumer to calculate the overall cost of the transaction and pay GST through the online GST registration process. The broad, tier-based Goods and Services Tax (GST) system combines a number of indirect taxes. Think going out to eat on a limited budget and being unaware of the whole cost until the bill is delivered. Certainly, it can lead to stress which is unnecessary, hence the GST calculator could be useful here. You may learn more about GST, how to calculate it and pay it with the help of this article.

What is GST all about?

GST was first approved by the parliament on March 29, 2017, and it became effective on July 1 of the same year. The CGST, SGST, and IGST are the three components that make up the Goods and Services Tax (GST). Online GST registration process helps in its payment.

All that is necessary to calculate the GST tax payable (i.e. the information and documents) are transferred to a trustworthy online GST tax calculator. The calculator determines it and then pays by online GST registration. Moreover, the user interfaces are specifically designed to meet the requirements of parties such as distributors, retailers, and manufacturers. Each of these versions offer a selection of several input options:-

• For buyer – GST rate, product price
• For manufacturers – GST rate, cost, profit margin
• For wholesalers and retailers – GST rate, items, total cost of the items

Final price includes total tax and a breakdown into CGST and SGST/IGST.

What are the reasons for using the Online GST Calculator?

Here are a few benefits of using an online GST calculator.

• Firstly, it is simple and easy to use, and it provides quick results
• Secondly, using an online calculator reduces the chances of making a mistake
• Thirdly, taxpayers can calculate the different amounts for CGST, SGST, and IGST, in contrast to the GST tax computation formula with accuracy
• Lastly, for the product of your choice, you can estimate the retail price

How to use the Online GST Calculator?

Tax calculation is a simple task for online GST calculators. Firstly, be aware of GST rates that apply to various categories of goods and services.

The GST rates will be 5%, 12%, 18%, and 28% as per applicability. After determining cost of purchase, follow these steps :-

Step 1

Enter total cost of the goods or services

Step 2

Determine the appropriate GST rate for your product or service category

Use a HSN or SAC code for accuracy

Step 3

Click on “Calculate”

Here’s a simple explanation to understand the tax description.

The various GST tax heads are:

• CGST   –  Central Goods and Services Tax charged and collected by central government
• UTGST- Union Territory Goods and Services Tax imposed by Union Territory government
• SGST  – State governments are in charge of imposing and collecting State Goods and Services Tax for transactions within a state
• IGST   – Central Government collects Integrated Goods and Services Tax for interstate purchases

By using an online GST calculator you can know the breakdown of tax and pay it by online GST registration.

Isn’t this the clarity that every taxpayer wants to see?

How is GST calculated?

Following is the mathematical method to calculate GST in case you want to separately verify the results this web tool generates.

Now, two scenarios are possible.

Given the net price, and after computing the GST-inclusive pricing:

First calculate the GST amount (A)

A = (P x r) / 100

Goods and Services Tax rate – r

Base or Total net price – P

Total or gross price G is

G = P + A

You can determine the pre-tax price using the following formula as long as you have the GST-inclusive pricing:

First determine entire GST amount A using gross price G

A = G – [G x {100 / (100 + r)}]

As a result, the Base or Total net price is as follows :-

P = G – A

A tax invoice for the CGST, SGST, and IGST will not be available to you. To obtain this information, you will need to use a GST calculator online.

Conclusion

In conclusion, an online GST calculator can not only prove to be helpful but also save money for you! Hope this article helped you! Get in touch with the experts at Finaccle providing services in the financial, taxation, accounting and legal domain right away to learn everything there is to know about GST, online GST registration process and much more!