What is GST?

Goods and Services Tax (GST) is an indirect tax imposed in India which is levied on the supply of goods and services. GST is a comprehensive, multi-stage, destination based tax levied on every value addition. GST came into effect on 1st July 2017 and replaced most indirect taxes in the country. Under GST goods and services are divided into distinct tax rates such as 0%, 5%, 12%, 18%, and 28%. However, some products such as petroleum products, alcoholic drinks, and electricity are not taxed under GST. These products are taxed separately by the individual state governments, as per the previous tax regime.

Types of GST

GST can be categorised under four heads such as 

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

IGST is charged for interstate supplies where the place of supply is in a different State compared to the location of the supplier. An equal rate of CGST and SGST(approximately half the GST rate applicable for IGST) is charged for intrastate supplies where the place of supply is in the same State compared to the location of the supplier.

What is GST Calculator?

GST calculator is a handy ready-to-use online calculator to compute the GST payable for a month or quarter. This calculator can be used by different types of users, such as buyers, manufacturers, and wholesalers.

How to Calculate GST?

Any business, manufacturer, wholesaler and retailer can calculate GST easily with the help of the following formula:

GST Calculation Formula

When the price is exclusive of GST:

GST Amount = (Value of supply x GST%)/100 
Price to be charged = Value of supply + GST Amount

When the price is inclusive of GST:

GST Amount = Value of supply – [Value of supply x {100/(100+GST%)}]

GST Calculation Example 

Given below is a simple illustration for GST calculation:

Calculation of GST by Manufacturers:

There is a cost reduction for manufacturers, who pass this benefit along the supply chain to the wholesalers, retailers and end-consumers.

Calculation of GST by Wholesalers & Retailers:

The cost of the product falls due under the GST regime and the end-consumer has to pay a lesser price for the goods at the same profit margin earned by wholesalers and retailers.

For a detailed calculation of your net GST liability payable in cash, check out our GST input credit utilisation and tax calculation calculator . The tool works offline for you and automatically calculates the net liability in cash after considering the balances in the electronic credit ledger for each tax head-IGST, CGST and SGST/UTGST.

How to Use ClearTax GST Calculator Online?

You can easily use the GST 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 the ‘calculate’ button. ClearTax GST calculator will display the tax amounts for each tax head CGST and SGST or IGST along with the final/ gross price of the goods and service to be billed.

Components of a GST Calculator

A GST Calculator is a valuable tool for businesses and individuals to estimate the Goods and Services Tax (GST) liabilities or refunds. Here's a breakdown of the components and how it works:

1. GST Rate selection: Select the applicable GST rate (e.g., 5%, 12%, 18%, 28%) based on the goods or services being taxed.
2. Value of Supply: Value of supply refers to the transactional value at which goods or services are sold or purchased, excluding GST. 
3. GST Calculation: Once the taxable value and GST rate are entered, the calculator automatically computes the GST amount. It adds the GST to the taxable value to give you the total amount payable (including tax)
4. Final Output: The calculator provides a clear breakdown of the GST payable, the taxable value and the total amount payable.

Step by Step Process to Calculate GST

• Step 1: Input the transaction details such as taxable value, GST rate, and applicable tax credits.
• Step 2: The calculator processes this data using predefined formulas to compute the GST.
• Step 3: It generates the final output, which includes the GST amount and the total payable amount.

By streamlining the GST calculation process, a GST Calculator ensures timely and accurate tax filings, helping businesses stay compliant with GST regulations.

Advantages of GST Calculator

The simplified GST calculator helps you:

• Determine the gross or net product price based on GST rates.
• Bifurcate between CGST, SGST and IGST accurately.
• Save time and reduce the chances of human error while computing the cost.