GST Calculator

What is GST in India?

The Goods and Services Tax is an indirect tax that is levied in India upon the supply of all goods and services. It is comprehensive. It is multi-stage and it is destination based.

GST came into being in India on the 1st of July 2017. Almost all indirect taxes like central excise duty, VAT, Octroi, Service tax, customs duty etc. were replaced by it. It is based on the same principles as VAT and is charged on value additions. This being the single tax, has made the taxation process of businesses easier. All goods and services are divided into five tax rates – 0%, 5%, 12%, 18% & 28%, while some products like petrol, alcohol & electricity are not taxed under GST. They have individual state taxes.

What is a GST calculator?

An online calculator, the GST calculator is used to compute the GST payable to the Government of India either monthly or quarterly. It is very easy to use, and is dynamic as it can be used to calculate for all types of users like retailers, wholesalers, buyers and manufacturers. The Upstox GST calculator is super easy to understand & use.

How to Calculate GST using a GST Calculator?

The Upstox GST calculator is a handy, easy to use & dynamic calculator that can help calculate the GST as per the net price of good or service and the slab it falls under. Follow the steps to calculate GST:

1. Select whether you are a wholesaler, manufacturer or a buyer.
2. Enter the Net Price of a good or service.
3. Select the GST rate that is applicable for said good or service.
4. Click on calculate.

The Upstox calculator will display the gross price of product as well as CGST & SGST or IGST.

What is the GST formula?

When GST is not included and must be calculated to be added on top.

GST Amount = (Net Value of good/service x GST%) / 100 Hence, Final Price = Net Value of good/service + GST Amount

When GST is already included and reverse GST Amount is required.

GST Amount = Gross Value of good/service – [ Gross Value of good/service x (100/(100 + GST%))]

For example, Say a good is net priced at Rs. 5,000, and GST slab to be levied is 18% GST = (5,000 x 18) / 100 GST = 900

Here, IGST is Rs. 900 or if CGST & SGST is to be levied, it would be Rs. 450 each.

Similarly, if the gross price of a good is Rs. 5,900, and GST is levied at 18%

GST = 5,900 – [5,900 x (100/(100 + 18))] GST = 5,900 – [5,900 x 0.84] GST = 5,900 – 5,000 GST = Rs. 900

Here, IGST is Rs. 900 or if CGST & SGST is to be levied, it would be Rs. 450 each.

What is the percentage of GST in India?

The different GST slabs in India are:

• 0% for milk, bread (necessity items)
• 0.25% for rough diamonds
• 3% on gold, silver and such
• 5% for some goods that are fresh or chilled or go through UHT (Ultra High Temp) processing
• 12% for some goods like plastic beads, notebooks, eyeglasses, processed foods etc.
• 18% for all services and some goods like electronics, bags, aluminium foil etc.
• 28% for some items like cars, tobacco, cement, etc.
• NIL rate which is different for 0% and is the slab for exempted goods and services

How to make calculation of GST in case of reverse charge?

Firstly, reverse charge is that mechanism in which the person receiving the goods or services is liable to pay the GST instead of the supplier of the goods or services. While the recipient will pay GST, the invoice of the supplier must mention it in the tax invoice as per the GST law. A good example of this is that in the case of Uber, they do not collect and pay GST, instead the middlemen, the e-commerce platform managers are liable to pay the GST.

To calculate the reverse charge, the calculation remains exactly the same. Let's say, a purchase of Rs. 10,000 is made. The buyer will then calculate GST (let's say 18%) on this and has to pay a GST amount of Rs. 1,800 (IGST) or Rs. 900 (CGST + SGST).

What are the benefits of the GST Calculator?

The Upstox GST calculator is simple to use and gives results within milliseconds. The benefits of using this calculator are:

1. It helps in calculating the net and gross amounts for a good or service as per the GST rate
2. It helps in distinguishing between IGST, CGST, SGST and UTGST with accurate amounts each
3. It gives instant results hence, saving time
4. There is no scope for human error
5. It is easy and hassle free

Example of GST Calculation?

Let's say the net value amount of a good is Rs. 55,000. GST is chargeable at 15%, what is the GST amount and Gross value to be paid?

GST = (Net Value of good/service x GST%) / 100 GST = (55,000 x 15) / 100 GST = Rs. 8,250

Hence, Gross Amount = Net Value + GST = Rs. 63,250

Another example is let's say the net value amount of a good is Rs. 2,00,000. GST is chargeable at 18%, what is the GST amount and Gross value to be paid?

GST = (Net Value of good/service x GST%) / 100 GST = (2,00,000 x 18) / 100 GST = Rs. 36,000

Hence, Gross Amount = Net Value + GST = Rs. 2,36,000

Interchangeably, If Gross Value was 2,36,000 and one wanted to find Net value of product and GST amount separately, the formula would change to:

GST = Gross Value of good/service – [ Gross Value of good/service x (100/(100 + 18))] GST = 2,36,000 – [2,36,000 x (100 / (100 + 18))] GST = 2,36,000 – [2,36,000 x 0.84] GST = 2,36,000 – 2,00,000 GST = Rs. 36,000

Hence, Net Amount = Gross Amount – GST = Rs. 2,00,000