GST Calculator

What is GST (Goods and Service Tax)?

GST, also known as the Goods and Service Tax, is an indirect Tax levied on goods and services. The GST law was passed in March 2017 by the Indian government with a vision to establish a common and simple taxation system for the whole nation.

Earlier, many indirect taxes were imposed on every stage of value addition on the goods and services, like VAT, excise duty, and service tax. When a good is produced, it passes through various stages of value addition before reaching the final consumer. Tax is charged at every stage of value addition.

The main aim behind introducing the goods and service tax was to replace the existing complex taxation system with a unified system to simplify tax structure and promote economic integration. Before GST, imposing Tax on inter-state sales of goods and services was a tremendous task, as every state has its own set of taxation rules. With the introduction of GST in the economy, it has become very straightforward to carry out the business.

Did you know?

Our Indian GST model is based on the Canadian model, and Assam was the first state that implemented the GST in India.

What is a GST Calculator?

A GST calculator is a handy mathematical tool that helps you to compute net and gross GST payable. Pocketful’s GST calculator is useful for buyers who want to know the amount of GST they are liable to pay.

Using a GST calculator has many advantages, as it helps to compute the amount that you are liable to pay whenever there is a sale or purchase transaction of any goods or services.

How does a GST calculator work?

The GST calculator uses a standardised formula to calculate the amount of the GST to be paid. In today’s time, GST is a very important aspect of any business. Thus, the business owners need to have a good understanding of the subject. Pocketful’s online GST calculator helps you to calculate your GST liability in just a few clicks. You don’t have to be a mathematics or economics expert to use our GST calculator. Irrespective of the state you belong to the working of the GST calculator will remain the same.

What are the different types of GST?

Three types of GST are imposed on the sale and purchase of goods and services:

• IGST: Integrated Goods and Service Tax is an indirect tax imposed on the inter-state supply of goods and services. The seller making supply outside the state will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on the purchases. In IGST, tax receipts will be equally shared between the State and Central government.
• CGST: CGST stands for Central Goods and Service Tax, it is an indirect tax levy by the central government of India on the intra-state supply of goods and services. The CGST Act has been enacted to make a provision for the levy and collection of tax on the intra-state supply of goods or services by the Central Government.
• SGST: SGST stands for State Goods and Service Tax, it is an indirect tax levy by the central government of India on the intra-state supply of goods and services. SGST and CGST are collectively levied on all the transactions. The difference is that CGST is governed by the Central government and SGST is governed by the respective state government. For example, in case of a sale of a Mobile Phone, where both the buyer and seller are in the same state, then both CGST and SGST will be levied, i.e., 9% CGST and SGST each as GST on a Mobile Phone is 18%.

What are the different GST brackets in India?

There are multiple tax brackets of GST in India, such as 5%, 12%, 18%, 28%, etc. There is also a nil bracket where no tax is levied, it includes good like staples, newspapers, etc.

The primary aim of introducing different brackets is to structure the GST in such a way that less tax is levied on essential goods and services, such as food and medicines, and more tax is levied on non-essential or luxury goods and services such as 5-star hotels, cigarettes, automobiles, etc.

However, the existing tax brackets are subject to revision; in fact, since the introduction of GST in 2017, there have been multiple revisions in the tax brackets of GST. The GST Council body is responsible for key issues related to GST such as changes in the GST tax brackets after receiving recommendations from key stakeholders like state governments, think tanks, etc.