GST Calculator
GST calculator made just for small businesses! With this tool, you'll be able to calculate GST in minutes without any complex math.
Actual Amount
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GST Amount
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Total Amount
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Introduction to GST
GST has replaced all types of taxes in India since 2017, creating a new paradigm of tax payment. Tax evasions have significantly reduced under GST, and the government has been able to collect way more taxes as compared to before. In 2024, the Central Government collected almost 1.73 crore worth tax, which is a great growth as compared to the revenue collection before GST was introduced. Now, how to calculate GST? GST calculation is one of the primary things as almost every good has a GST attached to it, and a business should know everything about GST calculation. These days, you can find an online GST calculator and easily get to calculate the GST numbers. But before that, you must understand what GST is, its types and how to calculate it.
What is GST?
Before getting to the GST calculator online, first, let's break down the formula for GST for easy understanding. GST stands for Goods and Services Tax, a tax paid on sales of final goods and services, not on intermediate goods.
Previously, before 2017, the entire India was under the regime of VAT and other types of taxes. Earlier the government charged VAT on every production point, and at every intermediate level. It was complex due to the collection of taxes at several points and also had the disadvantage of tax evasion.
Almost 16% of Indians evaded tax in 2017-18, which made up for almost 40% of the entire income of India. After the government introduced GST in 2017, the scenario changed. Tax evasions dropped and the disintegrated population of Indian taxpayers had finally resorted to tax payment. In this blog, you will learn about GST calculation, and even know how to use an easy GST calculator. Let's move forward with the various types of GST.
Types of GST
In India, there are mostly four types of GST prevailing. After understanding these GST types, you can understand better how to operate a GST calculator India. Here are they:
- CGST: This type of GST is imposed by the Central Government of India, and the full form is the Central Goods and Service Tax. The revenue collected from this GST is directly accrued by the Central Government, and the tax is applied to all intrastate goods and services sold and bought.
- SGST: This type of tax is collected by the State government on all intrastate goods and services. SGST combined most of the taxes such as entertainment tax, and entry tax under a singular tax regime.
- IGST: When you look at the GST calculation formula, you will find a term known as IGST, meaning Integrated Goods and Service Tax. The government imposes this type of tax on all transactions across two different states, and the Central and State governments share the revenue in equal proportion.
- UTGST: UTGST stands for Union Territories Goods and Services Tax, and is imposed on union territories only. A few areas such as Delhi, Jammu and Kashmir and Puducherry Union Territories are not covered under the UTGST, but they are rather covered under SGST tax law.
What is a GST Calculator?
The calculator is an online tool that works on a specified GST calculation formula. The formula is:
GST tax = (Sales price x Rate of GST)/100
The types of people who use the GST calculator online mostly consist of manufacturers, wholesalers or even small business owners such as kirana stores owners. A GST calculation device also takes into account various elements such as:
- Type of GST, if it is CGST or SGST
- The rate of GST applicable
- The final sales price
- The end-user of the calculator such as a wholesaler or a retailer where the GST rate will differ
How to Calculate GST?
Let's move in a gradual step-by-step process to reach the point of GST calculation, which will ensure that we are not missing out on any crucial steps in the computation of this tax.
A GST calculator in India is the best tool to calculate GST as compared to a methodical approach, but still understanding the process of GST calculation is of great aid for utilising computing GST. Here is how to compute GST:
Firstly, calculate the total amount of GST applicable. Once the business owner is aware of the GST rate and final sales price, they can easily calculate the final GST value. Here is the actual formula for GST calculation:
GST = (Selling price x GST rate)/100
Then, one can calculate the final price.
Final sales price = Sales price + GST amount.
Let's get this in brief with an example, as it will explain the GST calculation formula better.
Example of GST calculation
Let's suppose a small business owner needs to sell a set of bottles costing around ₹10,000. If the business owner sells them within the state, then CGST and SGST will be applicable. The GST levied, let's say, is 18%.
- The GST value will be (10,000 x 18)/100 = ₹1,800.
- The final selling price of the good will be 10,000 + 1,800 = ₹11,800.
Hence, the business owner will receive ₹1,800 as tax collected from the end customer and include it in the final price.
How to Use Covrzy's Free GST Calculator Online?
Covrzy provides an easy GST calculator for simpler calculations. You just need to input the sales price and GST rate, and the calculator will calculate the GST value within seconds. The calculator has some interesting features too:
Features of GST tax calculator
- You can choose the type of business owner, viz. manufacturer or retailer
- The calculator can automatically determine the rate of GST based on the types of goods chosen
- You have the option to include or exclude out of the price of final goods
- You can completely customise the final GST rate
Guide to using Covrzy GST calculator
- First, determine the selling price of goods including the profit margin
- You can simply enter the final selling price and the rate of GST
- The GST free calculator will immediately flash the resultant GST you have to pay
Components of an Easy GST Calculator
A GST tax calculator has a few components to make the entire calculation easier, here are they:
The GST rate selection
Before using the calculator, you have to select the exact GST rate which is directly dependent on the types of goods and services, such as tobacco having 28% GST currently in 2024-25, while fresh milk has zero GST.
Sales price
The sales price of the goods also matters as the GST rate will be levied on the final sales price. The sales price can be inclusive of the profit margin, or it can directly exclude the profit section.
Calculation of the GST
Covrzy GST calculator directly calculates the final GST value after one enters the final GST value, along with the sales price.
Advantages of using GST Calculator Online
The major advantages of using a GST calculator online are manifold, here are some of them:
- Business owners can directly compute the tax amount that they are liable to pay, and the exact GST value is apparent to them.
- Knowing the GST aids the manufacturers in filing the correct GST value
- Both the government as well as the business can clearly understand the GST value such as CGST and SGST, which promotes transparency.
- With the correct knowledge of GST, businesses can evade all forms of fraudulent activities.
Conclusion
A GST calculator online can provide several benefits in terms of calculating the GST without undergoing any parametric complex calculations. Using just the basic formula, the GST calculator can be of supreme help as it automatically calculates the current GST rate based on the type of goods chosen.
Currently, a large fraction of the Indian MSME businesses are regular taxpayers, and because of this, they need a GST calculator that is efficient, simple and yet fetches accurate results. Using the Covrzy GST calculator, you will get the exact GST value that your business has to pay and also pay the tax in time to avoid major penalties.
Frequently asked question
How to calculate GST from total value?
You can use an easy GST calculator to calculate the GST directly on the main sales price of your products and services. A GST calculator eases the process by automatically getting the calculations by updated GST rates and presents the final tax that a business is liable to pay.
What is the way to calculate GST in Excel?
Which person pays the GST?
What major tax slabs are under GST?
How to calculate GST on a calculator?
What is the formula for calculating GST?
How do you calculate GST paid from total?
How often do businesses need to file GST returns in India?
Do you have more questions?
For more queries related to GST calculations, tax compliance, and business taxation, ask your queries and get your doubts clarified.
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