Online GST Calculator

Ever since the introduction of the Goods and Services Tax (GST) in 2017, calculating the final price of a product/service has been the responsibility of a customer. GST is a multi-level all-inclusive tax covering all the previously fragmented indirect taxes. 

However, imagine going for a dine-out on a tight budget and not being able to fathom your bill amount until it arrives. None of us wants that kind of anxiety, and this is exactly where an online GST calculator comes in handy. Read on to know more about this beneficial tool.

An online GST tax calculator is a quick and easy way to determine the total GST payable for a period or against a product/service. This online tool comes with 3 modes of operation, each for a buyer, manufacturer, and retailer/wholesaler. Each of these variants comes with different input options.

• The calculator for buyers needs inputs for product price and GST rate.
• Manufacturers need to enter their product cost, percentage of profit, and GST rate.
• Wholesalers or retailers need to input the total cost of goods, profits ratio, and GST rate.

Each of these users will get the results for the final price, including tax, total tax, and this tax’s breakdown into CGST and SGST/IGST.

If you just got introduced to this efficient online tool, it is time that you know how to use one.

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Here is how you can benefit from an online GST calculator tool.

• It is easy to use and saves time by providing instant results.
• An online calculator curbs the inaccuracies of manual calculation and provides precise results.
• Taxpayers can determine the individual amounts for CGST, SGST, and IGST accurately, which is difficult to be manually calculated using the GST tax calculation formula.
• You can also estimate the gross price for your selected item.

Once you understand your taxes and have all the details of such purchases under GST, make sure to file your GST returns within the due date. Not complying with this will cost you additional charges.

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The process of calculating the  GST online is extremely easy. However, before going ahead with the calculation process, you must have an idea of the GST rates applicable for products/services of different categories.

The GST rate slabs under the new tax structure are 5%, 12%, 18%, and 28%. Once you know the rate applicable for your product, follow these steps as a buyer.

• Step 1: Enter the net price of goods/services you want.  
• Step 2: Enter a suitable GST rate corresponding to the category that your concerned product/service belongs. You can also find the applicable GST rate using an HSN or SAC code.
• Step 3: Click on “Calculate.”

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If you are confused with what the various acronyms displaying the tax breakdown indicate, here is a brief overview.

The different tax heads under GST are as follows:

• Central Goods and Services Tax (CGST): The central government is responsible for collecting this tax.
• Union Territory Goods and Services Tax (UTGST): This form of GST is collected by the Union Territory government.
• State Goods and Services Tax (SGST): This tax is applicable when transactions take place within a state. Such taxes are collected by the individual state governments. 
• Integrated Goods and Services Tax (IGST): If transactions are made between 2 different states, then  IGST is collected by the Central government instead of SGST.

An online GST calculator will help you gain a clear perspective regarding the tax charged at different stages of a product until it reaches you. 

Isn’t this the transparency every taxpayer craves?

Now that you know how to operate and understand the results of this online tool, let’s take a look at the manual calculation.

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If you wish to cross-check the output provided by this online tool on your own, here is a mathematical formula to calculate GST.

Now, there can be 2 instances.

1. Where you know the net price and want to compute the GST-included price:

Here, you will first need to calculate the GST amount, say A, using this formula:

A = (P x r) / 100

Where P stands for net price and r indicates the GST rate.

Now you can calculate the final or gross price G as follows.

G = P + A

2. Where the GST-included price is given, and you want to compute the original price:

First, you need to derive the total GST amount A from the given gross price G as follows.

A = G - [G x {100 / (100 + r)}]

Now you can calculate the original or net price P as well.

P = G – A

From the above instances, you can clearly understand that manual calculation using these formulae can only give you the total GST amount.

Calculating the break-up of CGST, SGST, and IGST manually can be a lengthy process. This is something that an online GST calculator can provide easily and quickly, which brings us to the next section.

If you file your GST returns after the given due date, you will need to pay a late penalty of Rs 100 per day subject to a maximum of 25% of his turnover along with interest on your net GST liability. This interest is calculated from the day immediately succeeding the due date.

Now, you might be wondering if this applies to you if you have had no sales on supplies in the concerned period. Yes, even then, you need to file your NIL GST returns as the penalty is not related to the amount of sales.

If you have missed the deadline and want to know your probable interest payment, here is the GST interest calculation formula for your convenience.

I = P x (r/100) x (n/365)

Where I stands for interest payable, P indicates the net GST liability, r is the annual interest rate, and n is the number of days of delay since the due date. 

You can also find a GST interest calculator online, which can help you determine such amounts faster.

To avoid such unnecessary charges, make sure to note the last date for filing GST returns in a month or quarter. Also, know your tax liability with the help of an online GST calculator and don’t remain in the dark!