GST Calculator
- Send Feedback
- Share
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
Transparency and Centralisation
GST provides transparency throughout the tax structure. GST also brings centralised registration and online 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.
Overall positive impact
Also relaxation in threshold limit of aggregate turnover for service provider companies (lower than Rs. 20 lakh is 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.
Prevent double taxation
Taxpayers under composition schemes will be beneficial by paying only 1% tax on their turnover after implementation of GST. (company can be registered under composition if turnover is up to Rs. 75 lakh only)
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 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.
Reduced taxes and discrepencies
By implementing GST the government wanted to prevent double taxation of commercial goods which in turn will bring down the production cost for companies. Thus, increase the competition among exporters.
Goods and Services Exempted From GST
GST brings regulations to unorganised sectors. It also reduces corruption. Moreover, Sales without receipts also reduced after implementing GST.
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 and resolved check-post discrepancies which in turn reduced logistics cost.
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,
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.
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,
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.
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.
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.
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,
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.
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.
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.