GST stands for Goods and Services Tax, this tax is payable on taxable supplies. This means any supply of goods or services by a business becomes taxable if there is a GST chargeable on that supply. The GST amount charged on the supply is equal to the GST incidence on that supply plus any input taxes, minus any output taxes.
What is the GST Tax Calculator?
GST Tax Calculator is an online calculator that computes the GST payable for a month or quarter. It can be used by different types of users, including buyers, manufacturers, and wholesalers.
Advantages of GST Tax Calculator
The GST Tax Calculator can help you determine the gross or net product price on percentage-based GST rates. It helps give the bifurcation of the rate between CGST and SGST or calculate IGST accurately. The GST Tax Calculator saves time and reduces the chances of human error while computing the total cost of goods and services.
How to Calculate GST Using Our CascaGST Tax Calculator?
WHAT IS GST: The Goods and Services Tax (GST) is a comprehensive tax levied by the Government of India on the sellers, manufacturers, and consumers of goods and services at a national level. GST is derived from the concept of the Value Added Tax (VAT) and is applied at multiple stages during manufacture or supply. The final consumer pays GST on the amount he or she is charged by the last dealer or supplier in the supply chain.
You can easily use the GST Tax calculator by following the simple steps:
Step-1: Enter the following details:
- Net price of a service or good and
- GST rate that applies such as 5%, 12%, 18% and 28%.
Step-2: Click on ‘calculate’ button. The CascaTax GST calculator will display the tax amounts for each tax head of CGST and SGST or IGST along with the final/ gross price of the goods and services to be billed.
Method to Calculate GST Using the CascaGST Tax Calculators
In the new tax structure, taxpayers can learn the GST rates applicable at different categories. These rates are 0%, 5%, 12%, 18% and 28%. These rates are used when calculating GST.
Different Tax Heads Under GST: GST can be categorized in four different heads such as:
- State Goods and Services Tax (SGST): State Government collects this tax
- Central Goods and Services Tax (CGST): Central Government collects this tax
- Union Territory Goods and Services Tax (UTGST): Union Territory Government collects this tax
- Integrated Goods and Services Tax (IGST): It is collected by the Central Government for inter-state transactions and imports.
The Integrated Goods and Services Tax is applied to interstate products when the supplier and the buyer are in different states. IGST treats both CGST and SGST as a single entity, which is then imposed on taxable items from interstate transactions.
Formula of GST Tax Calculator
The standard GST tax calculator is a tool that helps you determine the amount of tax that you owe for goods and services, based on taxable and pre-taxed amounts.
The Formula For GST Tax Calculation:
- Where GST is excluded:
GST Amount = (Value of supply x GST%)/100
Price to be charged = Value of supply + GST Amount
- Where GST is included in the value of supply:
GST Amount = Value of supply – [Value of supply x {100/(100+GST%)}]
GST TAX Calculation Example:
Let’s say a product is sold for Rs. 2,000 and 12% GST is applicable to that product. Then the net price of the product will be Rs. 2,000 + 12% of Rs. 2,000. The total cost is Rs. 2,000 + Rs. 240 = Rs. 2,240
Calculation of Tax Under GST:
GST can benefit manufacturers and dealers due to reduced tax burden. The table below depicts the amount of tax payable under the old tax system and GST system.
FAQs (Frequently Asked Questions)
What is the GST TAX calculator?
A GST tax calculator is used to calculate the goods and services tax (GST) payable for a specific period.
Who can use the GST Tax calculator?
The GST Tax calculator can be used by a buyer, manufacturer, and wholesaler as well.
How can a buyer use the GST Tax calculator?
Enter the net price before GST and then enter the rate of GST. It will calculate the total cost of production, CGST, SGST, and total tax.
How can a buyer use the GST Tax calculator?
Enter the net price before GST and then enter the rate of GST. It will calculate the total cost of production, CGST, SGST, and total tax.
How can a manufacturer/wholesaler use the GST Tax calculator?
Enter the cost of production/cost of goods, profit ratio percentage, and rate of GST. It will show the total cost of production, CGST, SGST, and total tax.
What are the benefits of the GST Tax Calculator?
The GST Tax calculator saves time and reduces the chances of human error while computing the total cost of goods and services and the tax amount.
