GST Calculator
Calculate Goods and Services Tax for your invoices
1. What is GST and how is it calculated online?
Answer: GST (Goods and Services Tax) is a unified tax applied to goods and services at different rates. It is calculated as:
GST Amount=Original Price×GST Rate100\text{GST Amount} = \frac{\text{Original Price} \times \text{GST Rate}}{100}GST Amount=100Original Price×GST Rate Final Price=Original Price+GST Amount\text{Final Price} = \text{Original Price} + \text{GST Amount}Final Price=Original Price+GST Amount
Online GST calculators help determine the GST amount by simply entering the price and applicable tax rate.
2. How do I calculate GST for my business?
Answer: You can calculate GST for your business using the following formula:
- For GST-inclusive price:GST Amount=Price×GST Rate100+GST Rate\text{GST Amount} = \frac{\text{Price} \times \text{GST Rate}}{100 + \text{GST Rate}}GST Amount=100+GST RatePrice×GST Rate Base Price=Total Price−GST Amount\text{Base Price} = \text{Total Price} - \text{GST Amount}Base Price=Total Price−GST Amount
- For GST-exclusive price:GST Amount=Price×GST Rate100\text{GST Amount} = \frac{\text{Price} \times \text{GST Rate}}{100}GST Amount=100Price×GST Rate Final Price=Base Price+GST Amount\text{Final Price} = \text{Base Price} + \text{GST Amount}Final Price=Base Price+GST Amount
3. What are the current GST rates in India?
Answer: GST rates in India vary based on the type of goods or services. The standard rates are:
- 5% – Essential goods, food items, transportation services
- 12% – Processed foods, certain household goods
- 18% – Standard tax rate for most goods and services
- 28% – Luxury items like cars, tobacco products
Some goods and services are exempt from GST, such as healthcare and education.
4. How do I use an online GST calculator?
Answer: Using an online GST calculator is simple:
- Enter the price (either inclusive or exclusive of GST).
- Select the applicable GST rate (5%, 12%, 18%, or 28%).
- Click Calculate to get the GST amount and total price.
Most online calculators provide instant results.
5. How do I remove GST from a price (Reverse GST Calculation)?
Answer: If a price is GST-inclusive, you can remove GST using this formula:
Base Price=GST-inclusive Price×100100+GST Rate\text{Base Price} = \frac{\text{GST-inclusive Price} \times 100}{100 + \text{GST Rate}}Base Price=100+GST RateGST-inclusive Price×100
Example: If the GST-inclusive price is ₹1,180 and the GST rate is 18%,
Base Price=1180×100118=₹1,000\text{Base Price} = \frac{1180 \times 100}{118} = ₹1,000Base Price=1181180×100=₹1,000
6. What is Input Tax Credit (ITC) and how is it calculated?
Answer: Input Tax Credit (ITC) allows businesses to reduce their GST liability by claiming credit for GST paid on purchases. It is calculated as:
ITC=GST paid on purchases−GST collected on sales\text{ITC} = \text{GST paid on purchases} - \text{GST collected on sales}ITC=GST paid on purchases−GST collected on sales
For example, if a business paid ₹5,000 GST on raw materials and collected ₹8,000 GST on sales, the net GST payable is:
GST Payable=₹8,000−₹5,000=₹3,000\text{GST Payable} = ₹8,000 - ₹5,000 = ₹3,000GST Payable=₹8,000−₹5,000=₹3,000
7. How does GST affect small businesses?
Answer: Small businesses with an annual turnover of up to ₹40 lakh (for goods) and ₹20 lakh (for services) are exempt from GST. However, businesses with turnover between ₹20 lakh and ₹1.5 crore can opt for the Composition Scheme, which allows them to pay a lower fixed GST rate.
8. Is there a penalty for incorrect GST calculation?
Answer: Yes, incorrect GST calculations or non-payment can lead to penalties:
- Late Filing Penalty: ₹50 per day (₹20 for NIL returns)
- Incorrect Tax Payment: 10% of the tax amount (minimum ₹10,000)
- Fraudulent GST Evasion: 100% of the tax amount
9. Can I calculate GST on exports?
Answer: Exports are zero-rated under GST, meaning you don't pay GST but can claim Input Tax Credit (ITC) on input costs.
10. Where can I find a reliable online GST calculator?
Answer: You can use:
- The GST portal (www.gst.gov.in)
- Online GST calculators from financial websites like ClearTax, Tally, or Razorpay