GST Calculator

GST Calculator

A GST calculator is an online tool that computes the amount of Goods and Services tax applicable to the base price of goods or services. It is a quick and convenient way to calculate GST without any manual accounting. Let us understand how GST calculators work.

What is GST- Goods and Services Tax?

Goods and Services Tax (GST) is an indirect tax in India, implemented on July 1, 2017, to replace multiple taxes like VAT, excise duty and service tax. It is a multi-stage, destination-based tax, collected at every stage of production and distribution, but is borne by the end consumer. There are primarily four types of GST in India - CGST, SGST, IGST and UTGST.

How to Calculate GST Using a GST Calculator?

• Step 1: Visit a trusted GST calculator website.
• Step 2: Enter the original cost or selling price of the item.
• Step 3: Select the appropriate GST rate from the dropdown.
• Step 4: Choose whether the entered price is inclusive or exclusive of GST.
• Step 5: Click on 'Calculate' to get the GST amount and total price instantly.

GST Calculation Formula

GST Amount = (Original Cost x GST Rate) / 100 Also,
Total Price = Original Cost + GST Amount

Understanding GST Calculation

Imagine you own a small bakery that sells a popular cake for ₹500. As a business, you need to add GST to the selling price based on the applicable rate, which is 18% for this type of food product.

Step 1: Calculating GST Exclusive Price

• Base Price: ₹500
• GST Rate: 18%

Applying the GST calculation formula:

• GST Amount = Base Price × (GST Rate / 100​)
• GST Amount = 500×(18/100​) = ₹90

Step 2: Determining Total Price Including GST

Now, to find the final price that customers will pay, you add the GST amount to the base price:

• Total Price = Base Price + GST Amount
• Total Price = 500 + 90 = ₹590

What is the GST Exclusive Amount?

GST exclusive amount refers to the price of goods or services before GST is added. The tax amount is calculated separately and then added to determine the final price payable by the consumer.

What is the GST Inclusive Amount?

GST inclusive amount contains both the cost of the goods or services and the GST. The total price generated is the final amount payable by the consumer with the embedded tax component.

GST Calculation for Inclusive and Exclusive Amounts

Here are some examples of how 18% GST will be calculated for different values and GST types:

GST Exclusive Calculation:

When the price of a product or service does not include GST, you need to add the 18% GST to the base price.

• Example:
• If the price of the furniture is ₹1,000 (exclusive of GST), you calculate GST as:
• GST Amount = ₹1,000 × 0.18 = ₹180
• So, the final price, including GST, will be:
• Final Price = ₹1,000 + ₹180 = ₹1,180
• Using the GST formula, the amount payable comes out to be ₹1,180.

GST Inclusive Calculation:

If the price already includes GST and you want to find out the base price (before GST was applied), you can reverse-calculate by dividing the total price by 1.18 using the GST formula.

• Example:
• If the final price, including 18% GST, is ₹1,180, you calculate the base price as below:Base Price = ₹1,180/1.18 ​= ₹1,000
• The GST amount is:
• GST Amount = ₹1,180 − ₹1,000 = ₹180
• Thus, the base price is ₹1,000, and the GST component is ₹180.

Types of GST in India

The tax structure under GST is divided into different components to facilitate the tax collection between the central and state governments. Here are the four types of GST implemented in India:

1. CGST (Central Goods and Services Tax): CGST is levied and collected by the Central Government on the intra-supply of goods and services.
2. SGST (State Goods and Services Tax): SGST is levied and collected by the state governments on the intra-supply of goods.
3. IGST (Integrated Goods and Services Tax): IGST is levied and collected by the Centre on the inter-supply of goods and services.
4. UTGST (Union Territory Goods and Services Tax): UTGST is restricted to Union Territories like Chandigarh or Lakshadweep. It is levied and collected by UT governments, along with CGST on goods or services sold.

For intra-state transactions, both CGST and SGST are charged, with each component being 50% of the total GST. This is how the structure works:

• CGST + SGST: For intra-state transactions
• IGST: For inter-state and international transactions
• UTGST + CGST: For transactions within Union Territories

How to Use FlexiLoan’s GST Calculator Online

• Step 1: Visit the GST Calculator webpage of FlexiLoans: .
• Step 2: Enter the amount for which to calculate GST.
• Step 3: Choose Inclusive or Exclusive GST calculation options for the right estimate.
• Step 4: Pick the mentioned GST rates to be levied on the amount mentioned.
• Step 5: Hit 'Calculate' to generate and receive the computed GST amount.

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Advantages of Using Online GST Calculator

1. Accuracy: GST calculators eliminate the risk of human errors that may occur during manual calculations, providing instant and accurate results every time.
2. Convenience: You can calculate GST on any amount with GST calculators as there is no upper limit. You can easily use it even with no prior GST knowledge.
3. Free to Use: Most GST calculators are completely free to use. You don't need to pay any fees or charges to access this tool.
4. Efficient invoicing: Using a GST calculator allows you to effortlessly create precise invoices with the appropriate GST breakdown, thereby enhancing your business's professional appearance.
5. Informed pricing: Knowing the GST impact helps you price your products or services competitively while maintaining profitability.
6. Easy compliance: Regular use of a GST calculator keeps your business tax compliant, avoiding last-minute hassles during GST return filing.
7. Budgeting: By factoring in the GST liability, you can better manage your business cash flow and working capital.

Conclusion

A GST calculator is an indispensable tool for any business dealing with goods and services. It simplifies GST calculation, ensures accuracy and helps you maintain tax compliance. Utilise FlexiLoans' online GST calculator for instant estimates of GST and the total amount payable.