Online GST Calculator
Calculate the GST amount and total including GST.
How to Use an Online GST Calculator
Using an online GST calculator is a straightforward process:
- Enter Amount: Input the initial amount exclusive of GST.
- Select GST Rate: Choose the applicable GST rate from the provided options (e.g., 5%, 12%, 18%, 28%).
- Calculate: Click the “Calculate” button.
- Review Results: The calculator will display the total amount including GST and the calculated GST amount.
What is GST – Basic Understanding
For everyday people, GST might seem complex, but the core idea is quite simple. Think of it as a way to ensure that taxes are levied fairly and only on the value that’s added at each stage of producing and selling goods and services. This prevents the piling up of taxes, which ultimately benefits consumers.
When you buy something – whether it’s a shirt, a phone, or a meal at a restaurant – GST is included in the price you pay. This tax is then collected by the government and used for public services like education, healthcare, and infrastructure development.
How Does GST Work?
Imagine a chain of transactions involved in producing and selling a product – from raw material extraction to the final consumer. Under the old tax regime, each step in this chain would be taxed separately, resulting in a cascading effect known as “tax on tax.” GST aims to eliminate this by taxing only the value added at each stage.
Here’s a simple breakdown of how GST works:
- Input Tax Credit: Businesses pay GST on their purchases (input) and collect GST on their sales (output). They can claim a credit for the GST they’ve paid on inputs. This concept is called Input Tax Credit (ITC).
- Multiple Stages: GST is applied at every stage of the supply chain. However, businesses can deduct the ITC they’ve paid on their inputs from the GST they owe on their outputs.
- Final Consumer: The final consumer bears the burden of GST. They pay the GST added by each business in the supply chain. Since ITC prevents double taxation, the consumer pays tax only on the value added by the business in that specific stage.
GST Calculator Formula
To calculate GST, Their are two way to do it, mention below
- In order to add GST to base amount,
GST Amount = ( Original Cost * GST% ) / 100 Net Price = Original Cost + GST Amount
- In order to remove GST from base amount,
GST Amount = Original Cost – (Original Cost * (100 / (100 + GST% ) ) )
Net Price = Original Cost – GST Amount
- calculate the GST percentage
GST Percentage = (GST Amount / Original Cost) × 100