GST is a systematic tax imposed on the production, selling, and use of products and services in the country. Different small and large organizations are expected to have a GST Identification Number to be listed under the GST scheme. When any type of selling purchase is rendered inside states (Interstate), the Integrated GST is charged. Central GST and State GST are charged on all intra-state transactions.
There are various types of GST obtained by the government:
State GST (SGST): Collected by the Govt of the State
Central GST (CGST): Collected by the Central Govt
Integrated GST (IGST): Collected by the central Govt for inter-state purchases and imports
Union Territory GST (UTGST): Collected by the Government of the Union Territory
How is GST calculated?
Through the unified tax system, it is now possible for taxpayers to know the tax charged at various stages on different goods and services under the GST regime. For the calculation of the GST, the taxpayer should be aware of the GST rate applicable to the different categories. The specific rates for GST are 5 %, 12 %, 18 %, and 28 %.
Calculation of the GST can be clarified by a clear example:
When products or services are priced at Rs. 1,000 and the effective GST rate is 18 %, the net price determined would be = 1,000 + (1,000X (18/100)) = 1,000 + 180 = Rs. 1,180.
GST Calculation Formula
The following formula can be used by a taxpayer to calculate the GST:
In order to add GST to base amount,
GST Amount = (Original price * GST %) / 100
Net Value = Original price + GST Amount
To exclude the GST from the base amount,
GST Amount = Original price – (Original price * (100 / (100 + GST %)))
Net Value = Original Price – GST Amount
How to use our GST Calculation Tool?
At Paisaexpo, we give taxpayers a dedicated and skilled GST Calculator device that helps to measure the GST quickly. Taxpayers who choose to measure GST at a proportional GST rate can use our method.
The foregoing are steps to be taken to measure the GST using the GST Calculation Tool:
Step 1: Choose GST Inclusive / GST Exclusive as needed
Step 2: Enter the original amount
Step 3: Choose the GST rate from the drop-down menu list
Step 4: Tap on calculate to verify the result. The result will show the total amount of GST and the pre-GST / post-GST amount as per your original requirement.