Gst Calculator - Guide on how to calculate GST online in India
Online GST calculators are helpful in calculating the tax amount and help in online payment of the same.Author : Priyanka Vinayak
GST stands for Goods and Services Tax, enforced by the Government of India. GST is an indirect tax that is levied on the sale of goods and services by the Union and State Governments. This tax system came into effect on July 1, 2017.
There are several calculators available on the internet that allow you to evaluate GST online in India in a simplified process. Online GST calculators are helpful in calculating the tax amount and help in online payment of the same. Read more to know how to calculate GST online in India.
HOW TO CALCULATE GST ONLINE IN INDIA:
Visit a website that offers a GST calculator and then follow these steps:
1. Select the number of items - From the drop-down menu, you need to select the number of items to calculate the taxes that will show you how much taxes will be charged if all the selected items were bought together from one seller at one point in time.
2. Select the services - If you wish to add up taxes that would be chargeable for both Goods and Services, you need to choose this option. You can add any number of items that are purchased together. You can also select 'None' to exclude those items from the calculation.
3. Select 'Calculate' - After selecting all the required options, click on the 'Calculate' button to get the final results.
4. GST on Services - This option is for services only. If you wish to calculate the value-added tax for any service, click on this button to get a value-added tax calculator for free. The result that you will get will be the GST amount charged on this particular service which can be paid online at government portals.
5. Click 'Review' - Once you submit your details from the fields as mentioned earlier and click the 'Calculate' button, a new page will open with all the products and services that have been selected. Click on the 'View details' link to explain the calculations shown in different charts.
6. GST on Notes and Gold - This is where the calculator will help you with the value-added tax on notations and Gold, respectively.
7. Inputs - This is a vital input section of the online GST calculator; if you wish to calculate the value-added tax at multiple places when you purchase goods, you can use this section to enter the amount that has to be paid at each place (i.e., each state or each location).
BENEFITS OF ONLINE GST CALCULATOR:
There are several benefits that you can derive by using a GST Calculator.
1. Accurately Calculate Tax: This calculator accurately calculates the taxes you will have to pay if you were to make the purchases together.
2. Efficient Use of Tax: This tool allows you to quickly calculate the tax amount, thus saving your time and energy. It calculates all the tax amounts with accuracy and gives you an idea about your final expenses on a purchase that requires heavy taxes in India.
3. Easy to Use: This online GST calculator is easy to use and can be used by anyone, regardless of their technical background. The interface is simple and allows anyone to use it without any trouble.
4. Free to Use: This calculator is free to use and does not require any investment.
5. No Need for Expertise: The online GST calculator does not require any qualification to operate it. One need not be an IT or finance expert to understand and operate the GST calculator. It is a user-friendly tool that all sections of society can use without any difficulty.
6. Smart Calculators: These calculators allow you to calculate the taxes that would be chargeable on your purchase, even before making the purchase itself, thus helping you make decisions about your purchases before you spend money on them.
Also read: Strong dollar dents India's foreign reserves, forex down by over $11 bn
TAX HEADS UNDER GST:
State Goods and Services Tax:
State Government collects this tax
Central Goods and Services Tax:
Central Government collects this tax
Union Territory Goods and Services Tax:
Union Territory Government collects this tax
Integrated Goods and Services Tax:
It is collected by the Central Government for
inter-state transactions and imports.
In the article, we have discussed the Goods and Service Tax Calculator, which helps you calculate the GST for any purchase you make on multiple items. We have also discussed how to use them in a step-by-step manner. If you are planning a purchase on multiple items, then the calculator will help you save time and money as it gives an accurate solution of your tax amount before the actual purchase. We also discussed its benefits and why one should use an online calculator tool. Many online calculators present on the web help calculate the value-added tax of any item with a simple process step by step, free of cost, efficiently at home or office through your computer or laptop within a few seconds.
Q1: When was the GST implemented?
The Value Added Tax (GST) was first introduced in India in 2017 as per the provision of the Constitution. However, this Act became an act on April 17, 2018, and from that date onwards, it applies to all the transactions starting from July 1, 2017.
Q2: Is GST a new tax in India?
It is not a new tax because existing taxes were slightly modified and entirely changed according to new rules and regulations laid by the government under GST (which means it's not a new tax). Still, instead, it's just a consolidation of all indirect taxes under one single unified rate called VAT.
Q3: What are the advantages of GST?
GST will make the process of tax compliance much easier. Secondly, it eliminates multiple rates and has a single rate of Integrated GST. It's also a completely new system to lay down rules and regulations for the taxation of goods and services in India.
Q4: Who decides rates to impose GST?
These rates are decided in the Parliament of India. GST Council consists of representatives from both union and state governments, namely the finance minister and chief ministers, who would decide the rates of tax according to the economy's demand.
Q5: What is the need for dual GST?
Dual GST means there are two taxes in the Indian economy called CGST and SGST. Central Government collects the SGST, and states collect the CGST. Both taxes are levied on every taxable event.
Q6: What is the application of Input Tax Credit?
The input tax credit is given on taxes paid for the purchased goods or services. GST provider gives credits for all these taxes to his customers (i.e., business or private persons). He can use this credit as a deduction from his output tax liability.