Free Online GST Calculator

GST Calculator

What is GST Invoice?

GST has brought to simplifying taxation for service and commodity businesses. GST is an indirect tax applicable to the supply of goods and services in India.

With all the details filled into a GST invoice format PDF, you’re good to go. All you need to do is download the edited invoice format and share it with your client.

Benefits of GST

Implementing a single indirect tax is beneficial in many ways such as

Transparency and Centralisation

GST provides transparency throughout the tax structure. GST also brings centralised registration and online [expander_maker id="1" more="Read more" less="Read less"]mechanism gives a chance to small businesses to file their tax returns easily. This allows to reduce the difficulties of the multiple taxation process as hiring tax experts is not an easy task for them. [/expander_maker]

Overall positive impact

Also relaxation in threshold limit of aggregate turnover for service provider companies (lower than Rs. 20 lakh is [expander_maker id="1" more="Read more" less="Read less"]exempted from paying tax & in case of North Eastern states, the threshold is at Rs.10 lakh) will give relief to the small businesses from lengthy taxation process. [/expander_maker]

Prevent double taxation

Taxpayers under composition schemes will be beneficial by paying only 1% tax on their turnover after implementation of [expander_maker id="1" more="Read more" less="Read less"]GST. (company can be registered under composition if turnover is up to Rs. 75 lakh only)[/expander_maker]

Brings regulation

GST is expected to leave a positive impact on India's GDP by increasing competition among the manufacturers and sellers to provide high-quality [expander_maker id="1" more="Read more" less="Read less"]and sellers to provide high-quality goods. It will boost export and manufacturing activity, and it will generate employment for a common man in India.[/expander_maker]

Reduced taxes and discrepencies

By implementing GST the government wanted to prevent double taxation of commercial goods which in turn will [expander_maker id="1" more="Read more" less="Read less"]bring down the production cost for companies. Thus, increase the competition among exporters. [/expander_maker]

Goods and Services Exempted From GST

GST brings regulations to unorganised sectors. It also reduces corruption. Moreover, Sales without receipts also [expander_maker id="1" more="Read more" less="Read less"]reduced after implementing GST. [/expander_maker]

Special GST Rates in India

Due to GST implementation taxes on certain goods reduces by 2% and some by 7.5%. GST eliminated the border taxes [expander_maker id="1" more="Read more" less="Read less"]and resolved check-post discrepancies which in turn reduced logistics cost. [/expander_maker]

What are GST Rates in India?

In India, there are 4 types of GST rates

GST Slab of 5%

Popular Goods: The goods of basic amenities are covered under this slab such as sugar, oil, Frozen vegetables, Fertilizers, Plastic waste, tea, ayurvedic medicines, spices, agarbatti, coffee,coal, sliced dry mango,
[expander_maker id=”1″ more=”Read more” less=”Read less”]cashew nuts, lifeboats, fish fillet, sweets, handmade carpets, unbrandednamkeen, and life-saving drugs.

Popular Services: The services under this slab include railways, airways, AC and Non-AC restaurants, hotel rooms with a tariff of less than 7,500, takeaway food, Newspaper printing, and special flights for pilgrims. [/expander_maker]

GST Slab of 12%

Popular Goods: Under this slab, the products like a sewing machine, umbrella, jewelry box, cell phones, along with processed foods like frozen meat, Pouches, purses & Handbags, nuts, fruits,fruit juices, butter, [expander_maker id=”1″ more=”Read more” less=”Read less”]cheese, ghee are covered. Popular Services: The services under this slab include Building construction for sale, movie tickets below 100 and business class flight tickets. [/expander_maker]

GST Slab of 18%

Popular Goods: Under this slab products like hair oil, mineral water, hair shampoo, oil powder, water heaters, washing machine, safety glass, pasta, pastries, ice-cream, detergent, scent sprays, leather clothing,
[expander_maker id=”1″ more=”Read more” less=”Read less”]artificial flowers, wristwatches, cookers, oil powder, cutlery, binoculars, suitcase, briefcase, shaving, after-shave, television screen, lithium-ion batteries, furniture, stationery items, mattress, Camera, monitors and video games are covered.

Popular Services: The services under this slab include Outdoor Catering, IT services, Telecom services, restaurants within hotels whose tariffs are above 7500, actual hotel bills below ₹7,500, and movie tickets above 100. [/expander_maker]

GST Slab of 28%

Popular Goods: Under this slab, over 200 products are covered like cars, cigarettes, Sunscreen,consumer durable products, high-end motorcycles, pan masala, weighing machine, cement are covered.
[expander_maker id=”1″ more=”Read more” less=”Read less”]Popular Services: The services under this slab include racing, cinema, betting in casinos, Food/Drinks/Stay at AC Five Star Hotels where the actual bill of hotel stays above 7,500. [/expander_maker]

Goods and Services Exempted From GST

Popular Goods: Some products are of regular consumption include raw material, eggs, besan, flour, bread, salt, sanitary napkins, natural honey, curd, sindoor, deities made of stone, kajal, oat, rye, bangles, handloom,
[expander_maker id=”1″ more=”Read more” less=”Read less”]newspapers, picture books, color books, manuscripts and Rakhis without precious metals.

Popular Services: The hotels and lodges with tariff below 1,000, plus IMM course books, bank charges on the savings account. [/expander_maker]

Special GST Rates in India

Popular Goods: The Government of India has fitted over 1300 goods and 500 services under four tax slabs of 5%, 12%, 18% and 28% under GST. Aside from that, some special GST rates were enforced as below- [expander_maker id=”1″ more=”Read more” less=”Read less”]

Tax on gold kept at 3%, Although 5% of GST is applicable to making charges of gold jewelry. A jeweler can avail ITR of the making charges but In the final bill, only 3% of GST will be applicable.
A special rate of 0.25% is levied on Rough precious and semi-precious stones under GST.
In the case of real estate –
- GST is levied only when an under-construction property is purchased.
- 1% for affordable house properties
- 5% for non-affordable house properties
- 12% GST for commercial property
- However, no GST is levied when you purchase a ready to move in property

[/expander_maker]

Frequently Asked Question

1.How is GST Calculated in India ?

In India, the Goods and Services Tax (GST) is assessed as a percentage of the value of the goods or services provided. Below is a concise explanation of the process:

Establish the Taxable Value: The taxable value refers to the price of the goods or services before GST is added. This serves as the foundation for calculating GST.

Implement the GST Rate: GST rates differ based on the category of goods or services. Common rates include 5%, 12%, 18%, and 28%. Certain items may qualify for special rates or exemptions.

For instance, if a service is subject to an 18% GST rate and the taxable value is ₹10,000:

GST Amount = ₹10,000 × 18% = ₹1,800
Total Amount Payable = ₹10,000 + ₹1,800 = ₹11,800

Input Tax Credit (ITC): Businesses are entitled to claim input tax credit for the GST paid on inputs utilized for providing taxable supplies. This allows them to reduce the GST owed on their output supplies by the GST already paid on inputs.

GST Calculation for Invoices: Typically, GST is displayed separately on invoices. For example, if a product costs ₹50,000 and the GST rate is 18%, the invoice would detail:

Price of Goods = ₹50,000
GST @ 18% = ₹9,000
Total Invoice Amount = ₹59,000

Filing GST Returns: Businesses are required to submit GST returns on a regular basis (monthly or quarterly), outlining their sales, purchases, and the GST collected and paid.

It is important to note that India’s GST framework operates on a dual system, incorporating both central GST (CGST) and state GST (SGST) for intra-state transactions, while integrated GST (IGST) applies to inter-state transactions.

2. How do I calculate GST Online ?

Calculating GST online is a convenient option. With our “Online GST calculator,” you can determine the precise GST applicable to a specific product. Utilizing Vyapar for GST calculations allows you to see the GST included in the product’s price and compute any additional GST that needs to be added to the base price. This method not only saves time but also minimizes human errors, making GST calculations straightforward.

3. What are the three types of GST?

In India, the three categories of GST are CGST, SGST, and IGST. CGST and SGST are collected by the central and state governments, respectively, and apply to intra-state transactions. In contrast, IGST is imposed on inter-state transactions and is shared between the central and state governments.

4. What is CGST, SGST and IGST ?

CGST, SGST, and IGST are various types of taxes imposed by both state and central governments on transactions involving goods and services conducted by taxpayers. CGST, or Central Goods and Service Tax, is applied to intra-state transactions and is collected by the Central Government for supplies made within a single state. SGST, or State Goods and Service Tax, is also levied on intra-state transactions but is collected by the respective State Government for supplies within that state. UTGST, or Union Territory Goods and Service Tax, applies to intra-state supplies in India’s Union Territories, including Andaman and Nicobar Islands, Dadra and Nagar Haveli, Chandigarh, Lakshadweep, and Daman and Diu. This tax is collected by the Central Government and is regulated under the Union Territories Goods and Services Tax Act of 2017.

5. How is CGST and SGST is calculated ?

Regarding the calculation of SGST and CGST, when both taxes are applicable, they will each represent equal portions of the total GST. For instance, if the original cost is Rs. 400 and the GST rate is 5%, resulting in a GST amount of Rs. 20, then SGST will be 2.5% (Rs. 10) and CGST will also be 2.5% (Rs. 10).

6. What is IGST example?

IGST, or Integrated Goods and Service Tax, is an additional tax imposed on inter-state transactions and is collected by the Central Government for supplies that occur between states.

An example of IGST involves transactions between states. For instance, if goods are transported from Rajasthan to Uttar Pradesh, IGST will be applicable on that supply.

7. How is GST Charged?

GST, or Goods and Services Tax, is a unified indirect tax implemented in India at midnight on July 1, 2017, by the President and the Government of India. It is applicable at every stage of the sale or supply of goods and services, with the tax being determined by the destination of these goods and services. For transactions occurring within a single state, both State Goods and Services Tax (SGST) and Central Goods and Services Tax (CGST) are applicable. Conversely, for inter-state transactions, where goods are transported from one state to another, the Integrated Goods and Services Tax (IGST) is applied on the invoice. The GST is structured around various tax rates established by the government, which include slabs of 5%, 12%, 18%, and 28%, among others, for the purpose of tax collection.

8. How is IGST Calculated ?

IGST is derived from the combination of SGST and CGST, reflecting the principle of “one tax one nation.” To clarify the application of IGST, consider an example where the applicable rate on goods is 5%. In an interstate sale, such as transferring goods from Bangalore to Jaipur, a unified tax called IGST is enforced. The trader in Jaipur will pay the IGST, while the trader in Bangalore will collect this tax and forward it to the government. The central government is responsible for collecting the IGST, which is subsequently distributed between the state and central governments. It is important to note that the final tax revenue is exclusively allocated to the importing state.

9. Who will pay GST Buyer or Seller ?

The responsibility for paying GST lies with the consumers or buyers, who are required to pay the GST imposed by the supplier within the supply chain. Sellers or suppliers are obligated to collect this GST from the buyers and remit it to the government, ensuring that the final tax revenue is received.

10. How Can a buyer use the GST Calculator ?

Buyers can utilize the GST calculator available on our website to determine the taxes associated with their purchase orders. By entering the total amount and selecting the appropriate tax slab for the product or service in accordance with government regulations, users can easily obtain the GST details related to their transaction.

11. How can Wholesaler/ Manufacturer use the GST Calculator ?

Manufacturers and wholesalers can assess their small business’s GST obligations by applying the formulas provided below. However, employing an online GST inclusive calculator offers a more efficient and straightforward method for obtaining information about these tax liabilities.