What is GST?: Goods and Services Tax which is known as GST is an indirect tax that is introduced on the supply of goods in India. This taxation system is brought into the market so that all the indirect taxes can be replaced in India from 1st July 2017, and after that GST has become the only taxation system in the country. GST is a complete tax which is imposed on the manufacturing, sale, and utilization of goods and services in the country. The GST is divided into five different tax slabs i.e. 0%, 5%, 12%, 18% and 28%. However, there are various products that are not considered under GST like petroleum, alcoholic drinks and electricity. Different taxes that are imposed upon these products are decided and taken by the individual state government. To get register under GST all small and large companies are required to have a unique GST identification number.
What is GST Calculator?
GST calculator will assist you to know the correct amount of your product after calculating GST on it. As the calculation can be done quite easily while filing the required details on the GST calculator, the taxpayer must know about the required tax slabs while calculating the tax and for this, the GST calculator online will be very handful.
How is GST calculated through GST Calculator?
With the consolidated taxation system, for the taxpayers, it’s now important to understand the concept of GST and how the tax will be taken at numerous points for various goods and their services under this GST taxation system. To calculate the GST, a taxpayer must know in which slap its category comes under as GST is divided into five different slabs and all these five slabs have different tax percentages. The different tax slabs which are considered under for GST are 5%, 12%, 18%, and 28%.
- An example of GST calculation is displayed below-:
If a product is sold at Rs. 10000 and the product lies under GST slab of is 12%, then the price which will be calculated is = 10000+ (10000 × (12/100)) = 10000+1200 = Rs. 11200.
GST can be calculated in simple steps:
- Step1– Enter the required details in Calculator such as:
- Price of the goods and services
- Select the GST rate from the drop-down list
- Step2– After filling the required details, clicks on the compute button on GST Calculator. The GST calculator will demonstrate the amount of the tax for various tax heads like CGST, SGST, and IGST along with the final price of services and goods which need to be billed.
Advantages of GST Calculator
GST calculator can easily find out the final amount of the product which needs to be paid by taxpayers. By taking the help of the GST calculator, one can easily calculate the IGST correctly as it assists to bifurcate the interest rate between CGST and SGST. By taking the help of the GST calculator, one can easily save his time to calculate tax. Another advantage of the GST calculator is chances of error are very less as while calculation the total costs of the goods and services.