GST Calculator (India)

What is GST?

GST or Goods and Service Tax is an indirect tax levied on the supply of goods and services in India. It replaced multiple indirect taxes like VAT, excise duty, and service tax. Now it is the one tax that is applicable all over India.

It’s a multi-stage, comprehensive, destination-based tax applied at each stage of the supply chain, but businesses can claim credit for taxes already paid through a process called Input Tax Credit (ITC).

Goods and services are divided into five different tax slabs for collection of tax: 0%, 5%, 12%, 18% and 28%.There are a few lesser-used GST rates such as 3% and 0.25%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.

The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.

GST Structure in India

GST is divided into three main types:

• · CGST (Central GST) – Collected by the Central Government for intra-state sales.
• · SGST (State GST) – Collected by the State Government for intra-state sales.
• · IGST (Integrated GST) – Collected by the Central Government for inter-state sales.

Example:

If you sell goods worth ₹10,000 within your state at 18% GST, it’s split as:

• CGST = 9% (₹900)
• SGST = 9% (₹900)
• If it’s an inter-state sale, IGST of 18% (₹1,800) is charged instead

State Taxes removed by GST-

• Value Added Tax (VAT) – on sale of goods within a state.
• Central Sales Tax (CST) – on sale of goods between states (collected by states but levied by centre).
• Entry Tax – charged on goods entering a municipality/states
• Purchase Tax – levied on purchase of certain goods (like agricultural produce).
• Luxury Tax – on hotels, resorts, and certain goods considered luxury items.
• Entertainment Tax – on cinema, amusement parks, events (except taxes on local bodies).
• Taxes on Advertisements – levied by state governments.
• Taxes on Lotteries, Betting, and Gambling.
• State surcharges and cesses related to supply of goods and services.

Central Taxes Removed by GST-

• Central Excise Duty -except on a few items like petroleum, tobacco, and alcohol which are still outside GST.
• Additional Excise Duties -levied on certain goods.
• Service Tax - on services of all kinds.
• Additional Customs Duty- Countervailing Duty or CVD.
• Special Additional Duty of Customs - SAD.
• Excise Duty on Medicinal & Toilet Preparations.
• Cesses and surcharges related to the supply of goods and services -e.g., Swachh Bharat Cess, Krishi Kalyan Cess.

Benefits of GST-

• · Eliminates Cascading Effect of Taxes-
  Earlier taxes were charged on tax but now GST uses Input Tax Credit(ITC) ensuring tax is only on the value addition at each stage.
• · Transparency in Taxation-
  All transactions are recorded online thus making it harder to evade tax.
• · Boosting of government revenue-
  More taxpayers were brought into the system, increasing revenue collection potential.
• · Lesser Compliances-
  Before GST there was VAT and service tax, each of which had its own returns and compliances.

GST Calculator Examples – Adding and Removing GST

Example 1: Adding GST

A product costs ₹2,000 (excluding GST) and GST rate is 18%:

• GST Amount = ₹2,000 × 18% = ₹360
• Price Including GST = ₹2,000 + ₹360 = ₹2,360

Example 2: Removing GST

A product costs ₹2,360 (including 18% GST):

• Price Excluding GST = ₹2,360 ÷ 1.18 ≈ ₹2,000
• GST Amount = ₹2,360 – ₹2,000 = ₹360

What is a GST Calculator and How Does It Help?

A GST calculator is a simple online tool that:

• · Adds GST to a base price.
• · Removes GST from a total price.
• · Splits GST into CGST & SGST or calculates IGST.

In seconds, it tells you:

• · Base price
• · GST amount
• · Final price (inclusive of GST)

How to Use Finanjo’s GST Calculator – Step-by-Step

1. Enter the amount (price excluding or including GST)
2. Select GST type: Add or Remove.
3. Choose the GST rate (5%, 12%, 18%, or 28%).
4. Select whether it’s intra-state (CGST + SGST) or inter-state (IGST).
5. The calculator instantly shows the GST amount and final value.