How to calculate GST

GST Calculator: How to Calculate GST?

Goods and Services Tax or GST is an indirect tax which is levied on manufacture, sale and consumption of goods and/or services. Goods and services tax laws came into force on 1st July, 2017 and subsumed majority of the indirect taxes like sales tax, service tax, VAT, etc. The introduction of GST calculator bought a major reformation to the taxation field as well as to the economy.

You should know Different types of GST before using GST calculator

Different types of goods and services tax levied and collected by Government are:

Type of Tax

Tax collected by

SGST (State Goods and Services Tax)

State Government

CGST (Central Goods and Services Tax)

Central Government

UTGST (Union Territory Goods and Services Tax)

Union Territory Government

IGST (Integrated Goods and Services Tax)

Central Government

Also Read: GST Registration on the basis of State and Turnover

Rates of GST

The GST rates are divided into 6 parts: 0.25%, 3%, 5%, 12%, 18% and 28%. The details are:

GST Rates

Zero rated GST

There are also some GST items which are zero rated. These items are as follows:

GST Zero Rated Items
How to calculate by GST calculator?

The formula to calculate GST is as follows:
1. Add GST:
GST Amount = (Original Cost x GST rate)
Net Price = Original Cost + GST Amount

Also Read: Know about Credit Note under GST

Illustration:

Let’s assume that a product is sold for Rs. 5,000 and GST applicable to that product is 5%.
GST Amount = Rs. (5000 x 5%) = Rs. 250
Net Price = Rs. (5,000 + 250) = Rs. 5,250

2. Remove GST
GST Amount = GST included amount / (1 + GST Rate)

Illustration:
Let’s assume that GST included amount of the product is Rs. 5250.
GST Amount = Rs. 5250 / (1 + 5%) = 5250 / 1.05 = Rs. 5,000

Now keep this formula in mind while calculating your GST liability.

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