FREE GST calculator: One click, instant GST
Is GST calculation the most complicated part of your business? However, you are not alone in facing this. Many business professionals experience the same thing. Fortunately, we got the solution for it!
Now, simplify it with our online GST calculator to get accurate figures. No more time investment! Just one click & get your outcome in a minute! Simply enter the figures into the GST tax calculator and obtain an accurate result to ensure your business invoicing is error-free.
What is GST?
GST stands for Goods and Services Tax; it is an indirect tax levied on the sale of goods and services in India.
On July 1, 2017, India introduced a major change by implementing the Goods and Services Tax (GST) laws. This move replaced the confusing maze of Central and State taxes with a more streamlined approach. Under the Indian GST, goods and services are sorted into different tax slabs, like 5%, 12%, 18%, and 28%. It aims to simplify and unify the entire taxation system.
In India, any business that exceeds the annual turnover threshold of ₹ 40 lakhs is required to register under the Goods and Services Tax (GST) system. Once registered, these companies are assigned a unique identification number known as GSTIN, which stands for Goods and Services Tax Identification Number. Calculating GST is crucial for every business, and a GST-inclusive calculator is required.
Types of GST in India
The state government collects state GST or SGST for all transactions within the state’s borders. Revenue earned from SGST goes to the particular state government.
For all the intra-state transactions, the CGST is applicable. The central government of India collects it, and hence, its share goes to the central government.
For the goods that move across borders, the integrated GST is applicable. The revenue collected from IGST is shared between the state and the central government.
UTGST is similar to SGST but is applicable in Union Territories. The respective Union Territory administration collects it and uses it solely for internal projects.
How to calculate GST?
One of the most frequently asked questions among Indian business professionals is how to calculate GST. Since the introduction of GST, many people have less clarity on it. Well, it is necessary to determine which GST slab the product is categorized into. The applicable slabs are 5%, 12%, 18%, and 28%. Moreover, professionals must understand whether the calculation is CGST, SGST, IGST, or UTGST.
Here is the simple GST calculation formula, applicable for all products.
GST Calculation Formula
GST Amount = (Original Cost * GST Rate Percentage) / 100
After calculating the GST amount, the final price is calculated as the sum of the original price and the GST amount. The calculation becomes very easy when using the free GST calculator.
How to calculate CGST and SGST?
The total GST is divided and shared equally between CGST and SGST. Therefore, the calculation will be as follows:
CGST = Total GST amount /2
SGST = Total GST amount /2
What is the GST inclusive?
GST inclusive refers to the total price of goods and services that includes GST tax. There is no separate requirement for adding any extra GST to the price. B2C sales, such as those from retailers, service industries, and restaurants, commonly use an inclusive GST calculator. Even in the GST-inclusive, professionals must represent the GST breakdown on invoices.
What is GST exclusive?
GST exclusive refers to a price that does not include GST, with the tax added separately to the final bill. This kind of GST is very common in B2B sales, where businesses claim GST input credit. Freelancers, agencies, and consultants often use this type of GST for clarity in the billing.
What are the advantages of using a GST calculator?
Here is why we recommend using the online GST calculator:
Accuracy in calculations:
Using the GST calculator online from Moon Invoice helps to calculate accurate GST amounts. Our calculator follows the correct steps to calculate the GST amount, ensuring 100% accuracy in your calculations.
Saves time:
Calculating GST can be cumbersome! Our free GST calculator in India helps with accurate calculations, thereby saving you time and effort. Your business can, therefore, focus on other important tasks!
Easy to use:
Using our GST tax calculator is straightforward. You can enter the original amount and select the GST percentage, followed by the GST type, to obtain an accurate tax calculation in a fraction of a second.
Lowers the errors:
Calculating the correct GST further enhances the correctness of your billing and other financial calculations. As our free GST online calculator ensures accuracy, it reduces the likelihood of errors in subsequent calculations.
GST exclusive Vs. GST inclusive
GST Exclusive refers to the price that doesn't include the GST amount, whereas GST Inclusive refers to the price that includes the GST amount. The GST amount has to be added to the original amount. Looking for more on GST exclusive vs GST inclusive? Move this way!
| Point of Difference | GST Exclusive | GST Inclusive |
|---|---|---|
| Cost of Good/Services | ₹1,000 | ₹1,000 |
| GST Rate | 18% | 18% |
| GST Amount | ₹180 | ₹152.54 |
| GST Inclusive Price | - | ₹847.46 |
| GST Exclusive Price | ₹1,180 | - |
Frequently Asked Questions
What are the rates of GST in India?
There are different GST rates in India, applicable to multiple product categories. Some of them are:
- 0% for essential items
- 5% for basic necessities
- 12% for standard goods
- 18% for the consumer products
- 28% for the luxury and sin goods
What is the difference between CGST, SGST, and IGST?
CGST, SGST, and IGST are different components of Goods and Services Tax (GST). Let's see the difference between them:
CGST - Stands for Central Goods and Services Tax and is managed by the central government. It applies to intrastate transactions, where the sale occurs within the same state. CGST is directly allocated to the central government's revenue.
SGST - Stands for State Goods and Services Tax and is managed by the state government. It applies to intrastate transactions, where the sale occurs within the same state. SGST is directly allocated to the state government's revenue.
IGST - Stands for Integrated Goods and Services Tax and is managed by the central government. It applies to interstate transactions when the sale is between two different states or union territories. IGST directly goes to the central government.
What is the GST rate on a calculator?
The standalone calculator, either electronic or non-electronic, falls under HSN code 8470. These are subject to a total GST of 18% in India. Further, it is divided into CGST and SGST. Thus, 9% to CGST and 9% to the SGST.
How to figure out GST from the total?
Extracting GST from the total is also known as reverse GST calculation. The following formula is effective in calculating GST from the total:
GST amount = Total Amount - Base Value
Base Value = (Total Amount x 100 ÷ (100 + GST Rate))
Here,
The total amount is the paid price, which already includes the GST
The GST rate is the percentage of GST applicable to a particular good or service. Such as 5%, 12%, 18%, & 28%.
What is the GST registration process?
The GST registration process involves a systematic approach. It involves the following steps:
- Visit https://www.gst.gov.in/
- Click on the Register button mentioned above
- Select the “Taxpayer” and fill in the details like your name, PAN, & mobile number.
- Enter the OTP sent to your mobile number & email address.
- You’ll get the temporary reference number (TRN)
- Log in with TRN and fill in the details of Part B
- Upload the required documents asked in the fields.
- Choose the verification process from DSC, EVC, or Aadhar OTP
- The Application Reference Number (ARN) will be generated once you've completed all steps.
- The GSTIN (GST Identification Number) will be issued in 7 working days
Who needs to register for GST?
Businesses that fall under the category of earning a particular revenue as per the GST laws are required to register for GST. This means businesses with a turnover of more than ₹10 lakhs, ₹20 lakhs, or ₹40 lakhs need to register for GST.
