Goods and Services Tax refers to an indirect tax that is imposed on the supply of different goods and services. It is multi-stage, destination-based and comprehensive. The GST Act was passed in 2017 in the Budget Session and approved on the 29th of March, 2017. On 1st July 2017, GST came into effect in India as a single taxation system in the country and was divided into five different rates- 0%, 5%, 12%, 18% and 28%.
Products such as alcoholic drinks, electricity and petroleum products are not included under GST. They are taxed separately by the State governments. GST has replaced all other indirect taxes in India like Central excise duty, VAT, Entry tax and simplified the taxation structure. It has helped the government in achieving the ‘One Nation One Tax’ agenda. The government helps the taxpayers through the GST site, which provides the option of paying GST online.
The Goods and Service Tax is divided into four different categories:
- CGST or the Central Goods and Services- CGST is imposed by the Central Government on transactions that take place in the same state. It has replaced taxes such as CST, SAD, State-Tax, etc.
- SGST or the State Goods and Services Tax- SCGT is imposed by individual state governments on their goods and services. It has replaced taxes such as VAT, Sales tax, Entry Tax, Entertainment Tax, etc.
- UTGST or the Union Territory Goods and Services Tax- The UTGST is applicable on the supply of goods and services in the Union Territories of India- Andaman and Nicobar Islands, Dadra and Nagar Haveli, Daman and Diu, Chandigarh and Lakshadweep.
- IGST or the Integrated Goods and Services Tax applies to interstate transactions of different goods and services.
GST Inclusive and GST Exclusive Amount
GST Inclusive amount is the final amount of a product which includes its original value and the GST amount. The customer does not need to pay the tax separately.
GST Exclusive amount is the value that we get after removing the GST Amount from the final cost of the product (GST Included).
Under the GST regimen, taxpayers are now aware of the tax levied at different points for various goods and services as there is only one uniform system of taxation. They now only need to know the various GST rates applicable to the various categories.
GST tax calculator refers to a calculator used for calculating the Goods and Services Tax for a specific time period. It is an online calculator which computes GST for a quarter or a month. It can be used by wholesalers, manufacturers as well as buyers.
A GST services calculator helps in determining the net or gross price of a product based on GST rates. It saves time and reduces errors that can occur while computing the costs.
The following steps can help in calculating Goods and Services Tax using an online GST calculator:
- Select GST Inclusive or GST Exclusive (as per requirement).
- Enter the original price of the good or service.
- Select the rate of GST that applies to different goods and services.
- Select ‘Calculate’. The final GST amount will be shown.
Formulae to Calculate GST
GST is a unified taxation system that can help the taxpayers in evaluating the tax levied on different goods and services. For calculating GST, the taxpayer must know the different GST rates applicable on goods and services. A taxpayer can use the following formulae for calculating GST:
Adding GST to the base amount:
GST Amount = (Original Price * GST Percentage) divided by 100
Net Price = Original Price + GST Amount.
Removing GST from the base amount
GST Amount = Original Price- (Original Price * (100 divided by (100 + GST Percentage )))
Net Price = Original Price - GST Amount
GST Tax Calculation:
All dealers and manufacturers can benefit from Input Tax Credit under the GST system of taxation. Mentioned below is an example of how GST is calculated:
For instance, the sales price of a product is Rs 4,000.
The GST is applicable at the rate of 10%.
The net value of the product = Rs 4000 + (10% of Rs 4000)
Therefore, Net Value = Rs 4,000 + Rs 400 = Rs 4,400
The following examples can help in understanding the difference in tax payable under the GST system and the old taxation system for manufacturers:
|Particulars||GST Rate (%)||Pre-GST Amount||Amount under GST|
|Price of the product||-||Rs 1,00,000||Rs 1,00,000|
|Profit||10%||Rs 10,000||Rs 10,000|
|Excise Duty||12%||Rs 13,200||Nil|
|Total||-||Rs 1,23,200||Rs 1,10,000|
|Final amount||-||Rs 1,37,984||Rs 1,23,200|
The Goods and Services Tax is a unified taxation system which has replaced all other indirect taxes in the country. It helps in ensuring transparency between traders and eradicates double taxation. A GST tax calculator helps in saving time and eradicates the chance of error while calculating this tax. This article includes all the GST details that can help a person in GST filing online.
Q. How to register for GST?
A. The following steps can help a person register for GST:
- Go the GST Portal and click on ‘Services’
- Select GST Registration Online and then your State and District
- Enter the name and PAN of your business along with the email ID and phone number
- Go to the GST portal and select ‘New GST Registration’
- Enter the TRN and your application will be shown in the drafts
Q. What is GSTIN?
A. GSTIN refers to a unique code that is assigned to every taxpayer. It is a 15 digit code that is PAN based and distributed state-wise. In a GSTIN registration, the first two numbers represent the state code. The next ten are PAN numbers, the 13th is the total registrations of a state, the 14th is ‘Z’ by default. The last one is a check code and can be any alphabet or number.
Q. What is a GST Bill?
A. A GST Bill or the Goods and Services Tax Bill is a bill passed in the Rajya Sabha in April 2017. It refers to a single tax that applies to all manufacturers and consumers. It combines indirect taxes such as VAT, Sales Tax, Excise Duty, OCTROI, etc.
Q. What is the rate of GST on real estate?
A. As of April 2019, GST is levied at the rate of 5% (excluding ITC) on residential properties. It will be levied at the rate of 1% (excluding ITC) upon affordable housing properties.
Q. How many types of GST returns are there?
A. There are several types of GSTR- GSTR 1, GSTR 2A, GSTR 2, GSTR 3, GSTR 3B, GSTR 4/CMP 08, GSTR 5, GSTR 6, GSTR 7, GSTR 8, GSTR 9, GSTR 9A, GSTR 9C, GSTR 10, GSTR 11.