GST Calculator

A GST Calculator is an online tool that helps individuals and businesses easily calculate the Goods and Services Tax (GST) on various products or services. It simplifies the process by quickly determining the amount of GST included or excluded from the total price, ensuring accurate billing and tax compliance.

How to Calculate GST?

Since the implementation of GST, taxpayers can clearly understand the tax applied on goods and services at various stages of the supply chain. To calculate GST accurately, it's essential to know which GST slab the item falls under.

Currently, GST slabs are categorized at 5%, 12%, 18%, and 28% for most goods and services.

For inter-state transactions, you need to calculate IGST by multiplying the taxable amount by the applicable GST rate. For intra-state transactions, CGST and SGST/UTGST are applied equally, and their sum equals the total GST amount.

Example:

Suppose a service is billed at ₹2,500 with an 18% GST rate.

• GST amount = ₹2,500 × (18/100) = ₹450
• Net price = ₹2,500 + ₹450 = ₹2,950

For an intra-state transaction:

• CGST = ₹225
• SGST = ₹225a
• Total GST = ₹450

Formula for Calculating GST

You can determine the Goods and Services Tax (GST) by applying the formulas given below:

To Add GST:

• GST Amount = (Original Cost × GST%) ÷ 100
• Net Price = Original Cost + GST Amount

To Remove GST (Find Base Price):

• GST Amount = Original Cost – [Original Cost × 100 ÷ (100 + GST%)]
• Base Price = Original Cost – GST Amount

Example:

Suppose you're offering a product that is subject to an 18% GST rate.

• Base Price (Original Cost) = ₹1,00,000
• GST @18% = ₹1,00,000 × 18% = ₹18,000
• Selling Price (Net Price) = ₹1,00,000 + ₹18,000 = ₹1,18,000

How To Use Wishfin GST Calculator?

• Visit the GST Calculator page - Navigate to Wishfin’s “GST Calculator” tool – this page supports CGST, SGST, and IGST calculations.

• Input the Value – In the “Total Amount (₹)” section, enter the price of your product or service before applying GST.

• Pick the GST Rate – Use the dropdown menu to select the correct GST slab (5%, 12%, 18%, or 28%) that applies to your product or service.

• View Instant Breakup - Once entered, the tool displays:
• Total GST applying the selected rate
• Post-GST Amount (total inclusive price)
  
• Understand Transaction Type

1. • In the case of intra-state transactions, the GST is divided equally between CGST and SGST.
   • For interstate, it shows the full amount as IGST.

Advantages of Using the GST Calculator

Below are some major advantages of implementing GST.

1. Uniform Taxation Across India - GST replaces multiple indirect taxes, creating a unified tax structure that boosts the "Make in India" initiative and enhances global competitiveness.
2. Broader Tax Base & Better Compliance - With a wider tax net and simplified rules, GST improves government revenue and enhances India's ease of doing business.
3. No Cascading of Taxes - GST offers input tax credit across the supply chain, eliminating tax-on-tax and reducing overall tax liability.
4. Simplified Compliance - Standardized procedures reduce complexities, making tax filing and dispute resolution more efficient.
5. Common Portal for All Taxpayers - The GSTIN portal ensures a unified platform for return filing, payment, and registration, streamlining the process for businesses.
6. Lower Tax Burden on Businesses - A single tax system reduces costs, increases margins, and encourages production and consumption.
7. Regulation of the Unorganized Sector - Online tracking and input credit conditions ensure greater accountability and formalization of unorganized industries.
8. Support for Small Businesses - Under the composition scheme, small businesses with a turnover up to ₹50 lakh can pay lower taxes, easing compliance.

Conclusion

A GST Calculator serves as a handy tool for individuals, businesses, and tax professionals to perform fast and precise GST computations. Whether you need to apply GST to the base amount or extract it from the total price, the calculator streamlines the task, reduces effort, and lowers the chances of mistakes. It also aids in maintaining tax compliance by clearly indicating CGST, SGST, or IGST depending on the nature of the transaction. By using such tools, taxpayers can better plan finances, maintain transparency, and stay aligned with India's unified tax system.