GST Calculator

The single, nationwide Goods and Services Tax (GST) brought various state taxes under a single tax net. However, businesses and individuals found it difficult to adopt as they were new to this one nation, one tax system. Our GST calculator above will help you accurately calculate your tax payable on a product or service. Read on to learn more about the CoinSwitch GST calculator and its many uses. 

All you need to know about the GST calculator

GST is an indirect tax charged on the supply of goods and services. It is a multi-stage tax system where tax will be levied on value addition done at each stage until the goods and services become finished products. The GST system has different rates for different products and services. The current GST slabs are 0% (nil rates), 5%, 12%, 18% and 28%. 

We pay GST while eating out at a restaurant or buying consumer goods. The GST calculator above will ease GST calculations for you. This will help you understand if you were charged a fair GST rate as a consumer or a business owner. 

More about the GST calculator

The GST calculator is a simple, automated, free online tool designed to calculate the GST payable monthly or quarterly. GST is an India-specific tax and so, the GST calculator needs to be tailored for the Indian GST tax regime. The GST calculator above is designed for India and can be used by buyers, manufacturers, wholesalers, and service providers. 

All you will need is the cost of the product and the GST tax slab applicable to the product. Input these details in the calculator to get the GST amount quickly. 

Calculating GST with the GST calculator

GST is not an option. All businesses operating in India have to be GST-compliant. Firms will receive a unique GST registration number known as the GSTIN once they complete the  GST registration process. 

However, consumers in India will pay GST when they make a billed purchase. While GST applies to most of the goods and services in India, there are some exceptions. Currently, goods like petroleum products, alcoholic beverages, electricity, public transport services, etc aren’t covered under GST. These items come under the purview of state governments, and they levy taxes on these goods and services. 

The GST council decides the GST rates. As mentioned above, the current GST regime has 5 slabs from 0% (nil-rated) to 28%. Most of the goods and services fall under one of these slabs. 

For those not used to the new taxation, the GST structure can appear to be complex. But if you are a consumer, you just need to know the cost of the product and the applicable tax rate to calculate the GST payable. The GST calculator will make the calculation process hassle-free.

Formula for GST calculation

The formula for a single-unit GST calculator is simple. If you are curious to work the formula, here is how to go about it.

GST amount = Cost of product or service * Applicable GST rate (in percentage)

The net price of the goods or service post-GST addition will be as follows: 

Net price = Cost of the product or service + GST amount (in Rupees)

Let’s put the above formulas to use to understand GST calculations with an example: 

Product Y costs ₹2,000 and it falls under the 12% GST slab. The GST will be calculated as: 

GST amount = ₹2,000*12% = ₹240

The net price for product Y will be calculated as: 

Net price = ₹2,000 + ₹240 = ₹2240

Going by the above example, GST calculations look like a cakewalk. However, you should understand that this is an oversimplified version of the calculation for easy understanding. The complexity of GST calculations set in when dealing with a mix of products and services falling under different GST slabs. This is when a GST calculator can be of immense help. 

Using the GST calculator

The GST calculator is simple to use. Keep the following details handy before you start the GST calculation process: 

1. The cost of products or services
2. The GST slab applicable to the product or service

Key in the variables in the calculator fields and you will get the post GST amount in seconds. 

How can a GST calculator benefit you

Taxes are certain and if you are living in India, you can’t escape GST as most goods and services barring a handful come under the purview of the GST. You will be charged GST for all purchases you make. Here is how a GST calculator can help you: 

• Precise results

The online GST calculator is an automated tool designed to calculate the GST amount and the post-GST value of goods and services using the input values provided. This process minimizes the human calculation error.

• User-friendly

The calculator is intuitive and simple to use. It just needs two input variables and an internet connection. 

• Useful in financial planning

The GST calculator will help you ascertain your GST liability for a given period. This is a cost to a business. Thus, knowing the GST liability in advance can help business owners plan their finances better.  

• Offers flexibility

GST calculator is free to use. You can use it as many times as you want to calculate GST on multiple products. 

Conclusion

The CoinSwitch GST calculator is designed to ease GST calculations as GST applies to almost all goods and services in India. All you will need is the cost of the product or the service and the applicable GST rate. Once you key in these variables, you will get the GST amount payable on the product as well as the post-GST value of the product.