Free Goods and Services Tax GST Calculator Online

The Goods and Services Tax (GST) is a tax levied on the supply of goods or services in the country.

It was introduced in India on 1st July 2017, replacing a complex web of taxes such as central excise duty, service tax, and sales tax.

The GST is an indirect tax, which means that it is not collected directly from the end consumer but is rather collected at each stage of the production process.

In this article, we will discuss the GST calculator and how it can help businesses and individuals calculate the tax payable on their transactions.

What is the Goods and Services Tax GST Calculator Tool?

A GST calculator is an online tool that helps calculate the GST applicable on a particular sale or transaction.

It is a simple and easy-to-use tool that takes into account the applicable tax rate and the price of the goods or services being sold. 

The GST calculator is useful for businesses and individuals who need to calculate the tax payable on their transactions.

How to Calculate GST?

Calculating GST can be a bit tricky, especially if you are not familiar with the tax slabs and the different tax rates applicable to goods and services.

The GST rate in India is 18%, but there are different rates applicable to different goods and services.

For instance, essential goods such as food and medicines are taxed at a lower rate of 5%, while luxury goods are taxed at a higher rate of 28%.

To calculate the GST payable on a transaction, you can use the following formula:

GST amount = (Price * GST rate) / 100

For example, let's say you are selling goods worth Rs. 10,000 and the GST rate applicable is 18%. The GST payable on the transaction would be:

GST amount = (10,000 * 18) / 100 = Rs. 1,800

The total amount payable would be:

Total amount payable = Price + GST amount = Rs. 10,000 + Rs. 1,800 = Rs. 11,800

Different Tax Slabs and Rates Calculation

As mentioned earlier, different goods and services are taxed at different rates under the GST regime. Here are some of the tax slabs and rates applicable in India:

• 0% tax: Goods and services such as fresh fruits and vegetables, milk, books, and newspapers are exempt from GST.

• 5% tax: Essential goods such as food grains, medicines, and vaccines are taxed at 5%.

• 12% tax: Goods such as processed food items, computers, and mobile phones are taxed at 12%.

• 18% tax: Most goods and services fall under this tax slab. This includes items such as clothes, footwear, and restaurants.

• 28% tax: Luxury items such as cars, aerated drinks, and tobacco products are taxed at 28%.

How the GST Calculator Helps Businesses

The GST calculator is a valuable tool for businesses as it helps them calculate the tax payable on their charges accurately.

It can also help businesses create GST-compliant invoices that show the total GST amount and the net price of the goods or services sold.

For example, if you are a manufacturer selling goods to a wholesaler, you can use the GST calculator to calculate the GST payable on the transaction.

You can then create an invoice that shows the total GST amount and the net price of the goods sold.

This will ensure that your invoice is GST compliant and that your customer knows exactly how much GST they are paying.

How to Use the GST Calculator

Using the GST calculator is very easy. Most online GST calculators are free and do not require any registration. Here are the steps to use the GST calculator:

1. Enter the net price: Start by entering the net price of the goods or services you want to calculate GST for. The net price is the original price of the goods or services excluding any taxes.

2. Select the applicable GST rate: Once you have entered the net price, select the applicable GST rate from the drop-down menu. The GST rates are different for different goods or services and are usually set by the government.

3. Choose whether the price is GST inclusive or GST exclusive: After selecting the applicable GST rate, you need to choose whether the price you have entered is GST inclusive or exclusive. If the price you have entered already includes GST, select "inclusive". If not, select "exclusive".

4. Click on "Calculate GST": Once you have entered the net price and selected the applicable GST rate, click on the "Calculate GST" button. The calculator will then show you the total GST amount and the gross price, which is the net price plus the GST.

5. Check the GST amount and the gross price: Once you have clicked on the "Calculate GST" button, make sure to double-check the GST amount and the gross price. This will ensure that the calculation is correct and you are not overcharged or undercharged for GST.

The GST calculator is a very useful tool for businesses and individuals who need to calculate GST quickly and accurately. By using the GST calculator, you can avoid the hassle of manual calculations of adding the tax rate similar to VAT and ensure that your transactions are GST compliant.