GST Calculator

Calculating the Goods and Services Tax (GST) amount can be confusing. But we have simplified it for you with our GST calculator. The calculator above will help you determine the GST payable on a product or a service accurately and with ease. Read on to learn more about it. 

All about the GST calculator

GST is an indirect tax levied in India on the supply of goods and services. It is a comprehensive, multi-stage, destination tax levied on value addition. Coming into effect in July 2017, it aimed to replace most indirect taxes in the country.

While the tax is widely applied, not everyone knows whether they are being charged fairly or how much to pay. That’s why we designed a GST calculator to help you calculate the taxes you owe for goods and services.

What is a GST calculator?

A GST calculator is a simple online tool designed to help calculate the GST payable in a month or quarter. Anyone can use it—buyers, manufacturers, or wholesalers.

To use this calculator, all you need is the cost of the product and the GST slab that it falls under. Once you provide these details, you will have the GST amount at the click of the button.

How to calculate GST using the GST calculator

Businesses operating in India are legally required to register for GST. They must have their unique GST number—also known as GSTIN. And consumers have to pay GST for most goods they purchase as well as services they avail.

GST does not apply to certain goods—like petroleum products, alcoholic drinks, and electricity. State governments, however, can charge taxes on these goods.

The current GST regime has five tax slabs. They are 0% (nil-rated), 5%, 12%, 18%, and 28% GST. Almost all goods and services fall under one of these slabs. 

To calculate GST using the online GST calculator above, you must have the cost of the product and the tax rate applicable. Once you key in these numbers, the calculator will show you the GST payable.

GST calculation formula

While the GST calculator above helps you calculate the GST due, for the sake of transparency, we will show you the formula used here. This formula will help you calculate the GST manually.

GST amount = Cost of product or service * Applicable percentage

The net price post-GST calculation will be as follows:

Net price = Cost of the product or service + GST amount

Let’s see if an example will help you understand this better.

If the cost of product X is ₹1,000, and it falls under the 18% GST slab, then: 

GST amount = ₹1,000*18% = ₹180

And the net price of the product thus can be calculated as follows:

Net price = ₹1,000 + ₹180 = ₹1,180

From the above example, we can see that GST calculations, while easy, can be time-consuming. If you are a business owner, you’re likely to offer multiple products or services, each falling under a different slab. In such cases, a GST calculator is going to be very useful.

How to use the GST calculator

Using the GST calculator is very easy. All you need to do is enter the following values:

• The cost of the product or service
• The GST percentage applicable to the product or service

That’s all it takes for the GST amount and post-GST amount to be displayed.

Benefits of using the GST calculator

The Indian government is increasingly becoming strict about GST. And business owners have to pay the tax every month, so the GST calculation has to be precise and prompt. The GST calculator will help you achieve this goal by making precise calculations in no time. That’s one of the primary benefits of using the calculator. Here are some of the other main benefits.

• Accurate calculation

The online GST calculator is designed to make accurate calculations based on the data provided. It reduces the chances of human error and is thus very efficient.

• Ease of use

Using the calculator above is a minimal-effort task. The inputs required only include the cost of the product and the applicable GST rate.

• Financial planning

As a business owner, you should plan the finances for your business in advance. Knowing the GST amount payable per month will help you manage your business better. And the calculator above helps you estimate this amount. 

• Comparison

The GST calculator will give you the GST amount to be charged on a product and the post-GST amount for the product. You can use the post-GST amount to compare the price of your product with that of your competitors and make the pricing decision.

• Flexibility

The GST calculator can be used multiple times to calculate the GST amount. This functionality gives you the flexibility to calculate the GST for multiple products and multiple times for the same product.

Conclusion

The GST calculator can facilitate the GST calculation for you. All you need is the cost of the product/service and the applicable GST rate. The calculator will give you the GST amount as well as the post-GST value of the product or service.