Also, do you face challenges in GST tax returns? You have good news for that. You can do it online with a GST calculator. For this, you need some basic information. With few filing and information submissions, you can smartly handle your GST and its calculation.
In the market, many GST calculators are available for quick and error-free GST calculations. It eliminates the manual calculations and lowers the risk of human error.
Why should you calculate GST in advance and in an accurate manner?
GST is India’s single taxation system. It replaced all other indirect tax formats related to sales of goods and services in India. The tax had been imposed on the sales of goods and services from July 1st, 2017.
GST is considered a comprehensive tax imposed on various product lifecycle components. GST is levied with the help of an identification number (GSTIN), which must be registered by a shop or business owner within the scope of the GST policy.
The concept of GST is transaction-based, i.e. its application focuses on sales transactions at the inter-state level. Thus, it removes the complexity of all the taxes issued earlier. But businesses need to fill it correctly and on time.
Using a GST calculator relieves businesses from the problem of filing GST. It has more accuracy than errors, which protects you and your business from penalties and legal issues.
What is GST Calculator and its Advantages?
After the introduction of GST, most businesses are familiar with the GST. However, software tools are necessary to overcome challenges like time constraints and mistakes in tax calculations. Using the GST Calculator gives them quick information about GST Rates, HSN codes, SAC codes, etc. It helps them calculate GST faster, generate GST-compliant invoices, and do business faster.
It also comes with a correct GST formula, which ensures error-free calculation. However, the first step to be able to use a GST calculator is to become familiar with the GST rates.
Some of its benefits are as follows:
The CGST, SGST, and IGST calculator aids in splitting taxes into their respective slabs.
A GST calculator will help you determine which tax bracket your transaction will fall under and how much will be charged for the goods/services bought/sold.
Calculating the entire cost of products and services also saves time and lowers the possibility of human error.
Step-by-Step Guide to Calculating GST using GST Calculator
The GST Calculator makes it possible to determine how much GST is included in the cost of goods. You must input the following information in order to use a GST calculator:
- Price to be determined: You must decide whether to calculate GST using the GST-included price or the GST-exclusive
- Total amount: The cost of the goods (including or exclusive)
- Tax Slabs: The GST tax bracket that the product is subject to
The GST calculator will present you with the following results based on the entered values:
- The amount of GST (Total GST Amount) that was levied when the goods were first purchased
- Pre/post GST Amount. It is the price of the product with or without GST.
Note: The calculator uses the automatically applied formula, giving you the most accurate results. Therefore, you will not have to use any formula.
Quick Steps to Calculate GST through GST Calculator
Step 1: Depending on the needs of your business, select GST Inclusive or GST Exclusive.
Step 2: Enter the original sale price to be used in calculating GST.
Step 3: Next, select the GST rate and multiply it by the final sale price.
Step 4: To view the result of the calculation, select Calculate.
FAQs on GST Calculator
How many GST slabs exist?
There are four different GST tax brackets in total: 5%, 12%, 18%, and 28%.
What is a GSTIN, and is a business required to have one?
Businesses must register for GST and obtain a GSTIN, a 15-digit unique identification number. This has replaced the Tax Identification Number (TIN).
What do SGST and CGST refer to?
Central GST and state GST are abbreviated as CGST and SGST, respectively. The two parts of the overall GST are the CGST and SGST. If a product's price includes 18% applicable GST, 9% of it is CGST, and the remaining 9% is SGST.
Do all goods fall under the GST?
No, not all goods are subject to GST.
Conclusion
Running a company/business/shop is a big task; you cannot waste time doing manual calculations. When it comes to GST tax, it has simplified our taxation system, but its calculation is a complex process. That's why it's essential to use a GST calculator to ensure that important tax figures are as accurate as possible.