Skip to content

GST Calculator

What is GST?

GST or Goods and Services Tax is a tax applied on goods and services. This single taxation system was introduced in India in 2017 as a blanket replacement for all indirect taxes. Some of the indirect taxes that were abolished included VAT, Central Excise Duty, Entry Tax and Octroi.

GST is levied on all goods and services, right from the manufacture to sales and to final consumption. Every manufacturing facility and service providers in the country must be registered under the GST policy and have a GST Identification Number. 

GST categories

There are four broad classifications of GST: 

  1. Central Goods and Services Tax (CGST) – same rate as GST and applicable for any intra-state sales.
  2. State Goods and Services Tax (SGST) – same rate as GST and applicable for any intra-state sales.
  3. Union Territory Goods and Services Tax (UTGST) – same rate as GST and applicable on the goods and services supply between any of the five territories of India.
  4. Integrated Goods and Services Tax (IGST) – IGST is applied on interstate transfer of goods/services. In case the state of product/service is different from the supplier’s location then this tax is applicable. IGST involves half the GST rate.

Under the new tax structure different GST rates are applicable for different categories. The new GST rates are:

  1. 0%, 
  2. 5%, 
  3. 12%, 
  4. 18% and 
  5. 28%.

What is Fisdom’s GST calculator?

Fisdom’s GST calculator is a handy online tool that can be used to compute the GST applicable on products and services. This calculator can be used by anyone, including buyers and sellers.

GST calculation

With the GST mode of taxation, taxpayers can enjoy transparency and know the exact amount of tax levied at various points towards goods and services. 

To calculate GST, a taxpayer must know the applicable GST rate for various goods and service categories. The GST tax slabs are classified under different percentages – 5%, 12%, 18% and 28%.

GST Formula:

To calculate GST on a product/service’s base value, the below-mentioned formula is used:

GST Amount = (Original Cost * GST%) / 100

Final Price of product/service = Original Cost + GST amount

Let’s understand GST calculation with a simple example:

If you are planning to buy a headphone worth Rs. 1,000 and the GST rate applicable is 18%, then the total price of the headphone will be calculated as:

1,000+(1,000X18%) = 1,000+180 = Rs. 1,180.

What are the steps to use Fisdom’s GST calculator?

One can use the GST calculator by following these steps:

Enter the below-mentioned details:

  • Price of a product of service
  • Choose from the applicable GST rate option
  • Select between ‘GST inclusive’ or ‘GST exclusive’ 
    Fisdom’s GST calculator will now display
    1. GST amount, 
    2. CGST and SGST amounts  
    3. Amount excluding GST 

Why should you use Fisdom’s GST calculator?

Some of the benefits of using Fisdom’s GST calculator are:

  • This GST calculator helps in easily estimating the net price of a product or service using GST rate percentages. 
  • It allows users to classify the rates between CGST and SGST.
  • With the help of this GST calculator, users can save a lot of time and effort in calculating GST. 
  • It also helps in eliminating any chances of errors arising out of manual calculations. 

How GST regime has been a game changer

Some of the ways in which the GST regime has brought efficiency to the indirect tax system in India are:

  • GST has resulted in the elimination of the cascading tax effect on goods and services
  • GST has done away with the system of tax on tax, thereby reducing tax burden on citizens
  • After the introduction of GST, the cost of many goods and services has come down
  • Since GST is technologically enabled, it is difficult to evade. Right from registration to return filings and even refund application is done online.

Conclusion

GST is one of India’s biggest tax reforms that allowed the country to move away from a complex and multi-layer taxation system and embrace a transparent blanket taxation regime. Since it has different percentages applicable for different goods and services, it makes sense for buyers and sellers to use a GST calculator for easier tax estimations.

Share the article

Get exclusive content and expert advice

Subscribe to fisdom to get regular updates in the finance world delivered to your inbox each month

Popular articles

 width='120' height='84'

How to Change Address in HDFC Credit Card – Online & Offline

 width='120' height='84'

What is offer for sale (OFS)? SEBI rules, advantages & disadvantages

 width='120' height='84'

What is India VIX? All the Details You Should Know