Online GST Calculator: Easiest Way to Calculate GST Amount

Goods and Services Tax ( GST ) is a kind of indirect tax that is levied on goods and services. It is imposed by different Governments in cou...

Goods and Services Tax (GST) is a kind of indirect tax that is levied on goods and services. It is imposed by different Governments in countries like Canada, India, Australia, Malaysia, Singapore, etc. It replaced several other older indirect taxes like Value Added Tax (VAT) and service tax.

As a consumer, you pay GST on almost all the purchases you make, right from your regular groceries and mobile phone services to gold jewelry and online booking services. The rate of GST will vary from one product or service to another.

If you run your own business, you will have to collect GST on the products you sell or the services you provide, from the consumers you sell them to. Thereafter, you will have to deposit the GST collected to the government. Here is where it becomes essential to compute the right amount of GST that needs to be paid. And an online GST calculator can help you with this.

What is a GST Calculator?

A GST calculator is simply an online financial tool that you can use to compute the GST amount on a particular transaction. The GST amount includes different components such as the following:

● Central GST (CGST):

This is levied on intra-state transactions and it goes to the central government.

● State GST (SGST):

This portion of the Goods and Services Tax will go to the state government.

● Integrated GST (IGST):

This is levied on inter-state transactions and it is shared between the central and state governments.

You can use a GST calculator to compute the different components of GST easily online. To do so, you need to know the tax slab to which your purchase or sale belongs. The different rates of GST are as follows:

● 0%

● 5%

● 12%

● 18%

● 28%

How to Use a GST Calculator?

The easiest way to calculate the GST amount on a sale or a purchase is to use any free online calculator designed for this purpose. You can even find a free online GST calculator on Google. Here is a step-by-step guide to using this online tool.

Step 1: Select the Category

First, select the category of individuals that you belong to, namely buyer, manufacturer, or wholesaler/retailer.

Step 2: Enter the Amount

If you are a buyer, enter the net price of the goods or services you are purchasing. If you are a manufacturer, you need to enter the cost of production as well as the profit ratio. And for retailers and wholesalers, you need to submit the cost of goods and the profit ratio.

Step 3: Enter the GST Rate

Enter the rate of GST applicable to the transaction.

That’s it. Once you enter these details, the online GST calculator will show you the CGST, IGST, and total tax amount.

Using an Online GST Calculator

Let us take up a small example to better understand how the calculation of GST works. Say you are a buyer who intends to purchase gold jewelry.

The gold GST rate is 3%, and it is calculated on the value of the metal. In addition, if the gold is converted into ornaments, GST is also levied at 5% on the service. So, gold jewelry carries a total gold GST rate of 8%.

Now, if you want to purchase Rs. 1,00,000 worth of gold jewelry, you will have to pay a GST of Rs. 8,000.

Conclusion:

This sums up how an online GST calculator can make it very easy to get more clarity on the amount of GST you need to pay or collect. You can use this online tool free of cost, as many times as required. So, ensure that you make the most of this solution and calculate the GST you need to charge or pay, as the case may be.