GST Calculator
GST Breakdown
What is GST?
Goods and Services Tax (GST) is an indirect tax imposed in India which is levied on the supply of goods and services. GST is a comprehensive, multi-stage, destination based tax levied on every value addition. GST came into effect on 1st July 2017 and replaced most indirect taxes in the country. Under GST goods and services are divided into distinct tax rates such as 0%, 5%, 12%, 18%, and 28%. However, some products such as petroleum products, alcoholic drinks, and electricity are not taxed under GST. These products are taxed separately by the individual state governments, as per the previous tax regime.
Types of GST
GST can be categorised under four heads such as
- Central Goods and Services Tax (CGST)
- State Goods and Services Tax (SGST)
- Union Territory Goods and Services Tax (UTGST) and
- Integrated Goods and Services Tax (IGST)
IGST is charged for interstate supplies where the place of supply is in a different State compared to the location of the supplier. An equal rate of CGST and SGST(approximately half the GST rate applicable for IGST) is charged for intrastate supplies where the place of supply is in the same State compared to the location of the supplier.
What is GST Calculator?
GST calculator is a handy ready-to-use online calculator to compute the GST payable for a month or quarter. This calculator can be used by different types of users, such as buyers, manufacturers, and wholesalers.
How to Calculate GST?
Any business, manufacturer, wholesaler and retailer can calculate GST easily with the help of the following formula:
GST Calculation Formula
When the price is exclusive of GST:
GST Amount = (Value of supply x GST%)/100
Price to be charged = Value of supply + GST Amount
When the price is inclusive of GST:
GST Amount = Value of supply – [Value of supply x {100/(100+GST%)}]
GST Calculation Example
Given below is a simple illustration for GST calculation:
| Particulars | Amount |
| Invoice value | 100,000 |
| GST @12% | 12,000 |
| Price to be charged on the Invoice | 112,000 |
Calculation of GST by Manufacturers:
| Particulars | Rate(%) | Amount Pre-GST | Amount under GST |
| Cost of the product | – | 200,000 | 200,000 |
| Profit | 10.00% | 20,000 | 20,000 |
| Excise Duty | 12.50% | 27,500 | Nil |
| Total | – | 247,500 | 220,000 |
| VAT | 12.50% | 30,938 | Nil |
| CGST | 6% | Nil | 13,200 |
| SGST | 6% | Nil | 13,200 |
| Final Invoice to the wholesaler | – | 278,438 | 246,400 |
There is a cost reduction for manufacturers, who pass this benefit along the supply chain to the wholesalers, retailers and end-consumers.
Calculation of GST by Wholesalers & Retailers:
| Particulars | Rate(%) | Amount Pre-GST | Amount under GST |
| Cost of the product | – | 278,438 | 246,400 |
| Profit | 10% | 27,844 | 24,640 |
| Total | – | 306,282 | 271,040 |
| VAT to be paid (Rs. 306,282 x 12.5%) – (Credit on VAT paid above Rs. 30,938) | 12.50% | 7,347 | Nil |
| CGST to be paid (Rs. 271,040 x 6%) – (Credit on CGST paid above Rs.13,200) | 6% | Nil | 3,062 |
| SGST to be paid (Rs. 271,040 x 6%) – (Credit on SGST paid above Rs.13,200) | 6% | Nil | 3,062 |
| Final Invoice to the end-consumer | – | 313,629 | 277,164 |
The cost of the product falls due under the GST regime and the end-consumer has to pay a lesser price for the goods at the same profit margin earned by wholesalers and retailers.
For a detailed calculation of your net GST liability payable in cash, check out our GST input credit utilisation and tax calculation calculator . The tool works offline for you and automatically calculates the net liability in cash after considering the balances in the electronic credit ledger for each tax head-IGST, CGST and SGST/UTGST.
