What is GST?

Goods and Services Tax (GST) is an indirect tax in India applied to the supply of goods and services. Launched on 1st July 2017, GST is a multi-stage, destination-based tax that is charged at every point of value addition. It replaced most previous indirect taxes and categorizes goods and services under five main tax rates: 0%, 5%, 12%, 18%, and 28%. However, certain items like petroleum products, alcoholic beverages, and electricity remain outside GST and continue to be taxed by state governments according to the previous tax system.

What are different tax heads under GST?

1. Central Goods and Services Tax (CGST)

This is the GST collected by the Central Government on an intra-state supply (within the same state).

For example, if a product is sold within Maharashtra, both CGST and SGST are levied.

2. State Goods and Services Tax (SGST)

This tax is collected by the State Government on intra-state supply.

For instance, on sales within Maharashtra, SGST is charged alongside CGST.

3. Union Territory Goods and Services Tax (UTGST)

This tax is applicable in Union Territories (UTs) without a legislature, like Chandigarh, Lakshadweep, and the Andaman & Nicobar Islands.

UTGST is charged alongside CGST on intra-UT supplies.

4. Integrated Goods and Services Tax (IGST)

This tax applies to inter-state supplies (between different states or UTs) and on imports.

IGST is collected by the Central Government and then shared with the destination state to ensure a destination-based taxation system.

What is the GST Calculator ?

A GST Calculator is an online tool used to calculate the Goods and Services Tax (GST) quickly and accurately on the supply of goods and services in India. It simplifies the process by automatically computing the amount of GST applicable based on the specified tax rate (0%, 5%, 12%, 18%, or 28%) and the original cost of the goods or services.

How Can You Calculate GST With This Tool?

1. 1. Select the User Type:
   At the top, you’ll see options for Buyer, Manufacturer, and Wholesaler. Select Buyer if you’re calculating the GST as a buyer.
2. 2. Enter the Your Data:
   In the enter Net Price/ Cost of Production?Cost of Goods, enter the base price of the product or service (the amount before GST is applied).
3. 3. Choose the Profit Ratio:
   Choose the ratio of profit to your production or goods (applicable for only manufacturer & wholesaler GST tool). 
4. 4. Choose the GST %:
   Next, select the GST percentage rate applicable to your purchase. Common GST rates in India are 5%, 12%, 18%, and 28%. 
5. 5. View the Calculated Results:
   The tool will instantly calculate and display the results.