What is GST Calculator?

GST Calculator: GST stands for Goods and Services Tax, which is imposed by the Government of India at the national or state level. The online GST calculator, offered by various third-party websites, can be used to calculate the applicable GST cost.

The Indian GST Calculator is a tool designed to accurately calculate the GST amount for various goods or services. Its purpose is to show the total value of goods or services, inclusive of GST.

The Goods and Services Tax (GST) is imposed by the Government of India on manufacturers, producers, sellers, and purchasers of goods and services at the national level. It operates on the principle of Value Added Tax (VAT). Since GST is applied on the value added at each stage, the final consumer pays the GST charged by the last supplier in the supply chain.

GST Rate for Product/Service

Clothing:

Most garments are taxed at 12% GST.

However, textiles below Rs. 1000 per meter attract a 5% GST.

Furniture::

Furniture generally falls under the 18% GST bracket.

Electronics:

Most electronic items are taxed at 18% GST.

Food items:

Basic necessities like cereals, milk, fruits, and vegetables are generally exempt from GST.

Processed and packaged food items typically attract a 5% GST.

Restaurant meals with air-conditioning or above Rs. 2500 per person incur 18% GST.

Raw materials:

The GST rate for raw materials can vary depending on the specific product. Many raw materials fall under the 5% GST slab, but some might attract a higher rate.

Transportation services:

Goods transportation services by a Goods Transport Agency (GTA) attract 5% GST.

Passenger transportation services (taxis, trains, buses) generally fall under the 18% GST bracket.

Communication services:

Communication services like telephone and internet typically have an 18% GST.

Educational services:

Thankfully, educational services are exempt from GST.

Legal services:

Legal services provided by advocates are taxed at 18% GST.

Accounting services:

Accounting services also fall under the 18% GST bracket.

Hotel accommodation:

The GST rate for hotels depends on the room tariff:

Penalties for Late Filing of GST Returns

In India, penalties are imposed for late filing of GST returns, and these penalties vary based on the type of return missed and your business's annual turnover. Here’s a breakdown:

Late Fee Structure:

GSTR-1, GSTR-3B, and other regular returns (except GSTR-9):

A late fee of Rs. 100 per day is levied for delay (Rs. 50 for CGST and Rs. 50 for SGST).

There's a maximum penalty cap of Rs. 5,000 per return (Rs. 2,500 for CGST and Rs. 2,500 for SGST).

GSTR-9 (Annual Return):

Recent updates have been made to the GSTR-9 filing deadlines and the penalties applicable starting from FY 2022-23.

Businesses with an Annual Aggregate Turnover (AATO) up to Rs. 5 crore:

A late fee of Rs. 50 per day is charged for delays, with a cap of 0.04% of the turnover in the respective state or union territory.

Businesses with AATO above Rs. 5 crore:

The penalty structure remains unchanged – a late fee of Rs. 100 per day for each Act (CGST & SGST), with a maximum limit of Rs. 5,000 per return.

GST Registration Process and Eligibility Criteria

Eligibility for GST Registration:

In India, GST registration is not mandatory for every business. Here’s a breakdown of who is required to register:

Businesses with a turnover exceeding Rs. 40 lakh per year (for goods and services)

Businesses with a turnover exceeding Rs. 20 lakh per year (for services in certain specified states)

Businesses making any interstate supply (sale/purchase across states) regardless of turnover

E-commerce aggregators

Casual taxable persons (those making occasional taxable supplies exceeding Rs. 10 lakh per year in a state where they are not registered)

Individuals who were registered under pre-GST laws (such as Excise, VAT, Service Tax, etc.)

Non-resident taxable persons (businesses not established in India but providing goods or services)

Agents of a taxable person

Persons required to pay tax under the reverse charge mechanism (where the recipient of the supply is responsible for paying GST)

Entities supplying online information, database access, or retrieval services from outside India to a person in India (excluding a registered taxable person)

GST Registration Process:

The GST registration process is primarily conducted online through the GST portal (https://www.gst.gov.in/). Here’s a simplified outline of the steps involved:

Gather Required Documents:

1. The PAN card of the applicant
2. Aadhaar card
3. Proof of business registration or incorporation certificate (e.g., company registration)
4. Identity and address proof of promoters/directors with photographs
5. Bank account statement/cancelled cheque/passbook
6. Authorization letter/board resolution for authorized signatory (if applicable)
7. Digital signature (optional, but recommended)
8. Register on the GST Portal: Create a login ID and password on the GST portal.
9. Fill Out the Application Form: Provide details about your business, including the nature of business, place of supply, bank account information, etc.
10. Upload Documents: Upload scanned copies of the required documents.
11. Verification and Approval: The GST department will verify your application and documents.
12. Granting of GST Registration Number (GSTIN): Upon successful verification, you'll receive a GST Registration Certificate with your unique GSTIN (Goods and Services Tax Identification Number).

Distinct Types of GST Assembled by the Government Are:

Why Is the GST Calculator Essential?

In India, there are five GST slabs, and if you are managing different GST rates for goods or services, it’s essential to determine the values or costs, whether including or excluding GST. In such cases, online GST calculators are incredibly useful, allowing you to quickly and accurately calculate GST on goods and services. Additionally, calculating values manually can become a daunting task, especially when creating thousands of invoices for goods or services with varying GST slab rates.

Knowledge Required to Use an Online Indian GST Calculator for GST Calculation

To calculate GST using an online GST Calculator, a taxpayer must know the relevant GST rate or HSN/SAC code for the specific goods and services. The unified tax system allows taxpayers to understand the tax applied at various stages for different goods and services under the GST framework. It’s important for every taxpayer to be aware of the applicable GST rate across the various slabs required for calculation. There are five GST slabs: 0%, 5%, 12%, 18%, and 28%.

GST Calculation Formula for Inter-State Sales

The Central Government will levy an integrated goods and services tax (IGST) on the inter-state supply of goods and services. IGST is allocated to the importing state for inter-state transactions. In the previous tax system, CST was charged in addition to VAT and excise duty for transporting goods between states. Under the GST system, IGST is the only tax imposed on goods moving across state borders. Below is an illustration to clarify the IGST system:

The four points mentioned above highlight the key benefits of using the Prologic Invoice GST Calculator online in India.

How to Calculate the GST Percentage from the Total Amount Using the GST Calculation Formula?

To add GST to the base amount

How to Calculate GST on MRP?

Advantages of GST Calculator

Here are some of the fundamental advantages of using a GST Calculator:

Conclusion

The GST Calculator in India requires the gross or net amount, the applicable GST rate, and an option to either add or remove the Goods and Services Tax from the specified cost. This unique taxation system has been implemented by the Government of India since April 2016. GST is categorized into Central GST (CGST), State GST (SGST), and Integrated GST (IGST).