GST (Goods and service tax) Calculator
The parliament passed the GST Act on March 29, 2017. This Act was implemented from July 1, 2017. Good and Services Tax is an indirect tax imposed by the Indian government on all goods and services purchased within its dominion. It is a single tax that has removed multiple indirect taxes of the previous government such as sales tax, Excise Duty, VAT etc.
Every enterprise working in India has to register for the GST and it is compulsory. They need to have a Good and Service Tax (GST) Identification Number. Consumers pay this tax for every goodthey buy and all the services they uses. As a result, it is important that one understands how to calculate GST accurately. You can take the help of the GST (Goods and Service Tax) calculator for further benefits.
How can a GST (Goods and Service Tax) calculator help you?
We have to pay GST for every goods we buy. We must know how much tax we are paying for the products we use. That is why an Indian GST (Goods and Service Tax) calculator has been introduced. Other benefits provided by this calculator are:
- It offers you with an accurate result of the amount of tax you need to pay.
- It saves your valuable time for the calculation of GST(Goods and Service Tax).
- It removes the chances of any false activities if you are an aware consumer who knows their taxes.
The formula to determine GST (Goods and Service Tax) amount
The GST (Goods and Service Calculator) use a standardised method to compute the GST. There are 2 feature of this calculator
- Adding GST to the total price of an item.
- Removing GST from the total price of an item.
To add GST, the formula is:
GST amount=(Price x GST%)
Net price = Cost of the product + GST amount
Example- if a product service costs Rs. 100 and the GST imposed on that product is 18%. Thereforethe GST amount will be 100 x 18% = Rs. 18. The net amount you have to pay would be Rs. 118.
To remove GST, the formula is:
GST= Original price – [Original price x {100/(100+GST%)}]
Net price = Original price – GST (Goods and Service Tax)
Example- if the price of a product after GST of 18% is Rs. 118 then its original price is 118 – [100/(100 + 18%)}], which results to Rs. 100.
How to use the GST (Goods and Service Tax) calculator?
You can use the GST calculator by following these steps:
- Enter the variables which is the original cost along with the GST percentage.
- The GST (Goods and Service Tax) amount will be displayed before you in seconds.
Advantages of using the GST (Goods and Service Tax) calculator
Advantages of using this calculator are:
- You can determine the tax amount you will pay.
- This calculator is quick and the results are accurateand also saves your valuable time.
- You are protected from any false activities that may be created out of wrong GST (Goods and Service Tax) calculation.