An Easy Guide to Use GST Calculator in India

India has come a long way ever since the introduction and implementation of the Goods and Services Tax, popularly known as GST, in 2017. While it is designed to simplify the tax structure and boost economic growth, it can be challenging for businesses and individuals to calculate the GST amount they owe or the GST they can claim back. This is where the GST calculator India comes in as a handy tool to help simplify the process.

If you are finding it hard to navigate the complexities of the GST system, don’t worry! This easy guide to using the GST calculator India will help you understand the basics of the GST tax structure and show you how to calculate your GST liabilities and input tax credits.

In this guide, we’ll walk you through the step-by-step process of using the GST calculator and also provide you with some tips and tricks to help you yield the most out of this tool. Whether you’re a business owner, an accountant, or an individual taxpayer, this guide will help you save time and make accurate GST calculations.

Step 1: Determine the GST Rate for Your Product or Service

The first step in using a GST calculator India is to determine the applicable GST rate for your product or service. The GST Council has classified goods and services under four different tax slabs – 5%, 12%, 18%, and 28%.

To determine the applicable GST rate, you need to check the HSN or SAC code for your product or service. The HSN, short for Harmonized System of Nomenclature, is a code system used to classify goods, while the SAC (Service Accounting Code) is used to classify services. Once you know the HSN or SAC code, you can find the applicable GST rate from the GST rate schedule available on the official GST portal.

Step 2: Calculate the GST Amount Using a GST Calculator in India

Once you have determined the applicable GST rate for your product or service, you can use a GST calculator to calculate the GST amount. The GST calculator India takes the following inputs:

• The total value or sum of goods or services (including taxes)
• The applicable GST rate

Based on these inputs, the GST calculator India will calculate the GST amount for you. For example, if the total value of goods or services is Rs. 20,000 and the applicable GST rate is 12%, the GST amount will be calculated as follows:

GST Amount = (Total Value of Goods or Services * GST Rate) / 100

GST Amount = (20,000 * 12) / 100 = Rs. 2,400

So, the GST amount for this transaction would be Rs. 2,400.

Step 3: Determine the Net Payable or Receivable Amount

The final step is to determine the net payable or receivable amount after adding or subtracting the GST amount. If you are a supplier, you will need to add the GST amount to the total value of goods or services to arrive at the gross amount payable by the buyer. If you are a recipient, you will need to subtract the GST amount from the total value of goods or services to arrive at the net amount payable.

For example, let’s assume that you are a supplier and you have sold goods worth Rs. 10,000 to a buyer. The applicable GST rate is 18%, and the GST amount is Rs. 1,800. In this case, the gross amount payable by the buyer would be:

Gross Amount Payable = Total Value of Goods or Services + GST Amount

Gross Amount Payable = 10,000 + 1,800 = Rs. 11,800

Similarly, if you are a recipient and you have purchased goods worth Rs. 10,000 from a supplier, the applicable GST rate is 18%, and the GST amount is Rs. 1,800. In this case, the net amount payable by you would be:

Net amount Payable = Total Value of Goods or Services – GST Amount

Net Amount Payable = 10,000 – 1,800 = Rs. 8,200

Conclusion

The GST calculation can seem complex, but with the help of the GST calculator India, you can simplify the estimation and accurately calculate your GST liabilities and input tax credits. This easy guide has provided you with a step-by-step process on how to use the calculator.

By using the GST calculator India, you can save time and avoid the risk of making errors when calculating your GST payments. This will help you maintain compliance with the GST laws and regulations in India and avoid any penalties that may arise from incorrect or delayed tax payments.

So, don’t hesitate to make use of the GST calculator India to simplify your tax calculations and stay on top of your GST payments. If you are looking for an efficient and dependable GST calculator, look no further than Razorpay’s GST calculator. It is a ready-to-use calculator offered by Razorpay that can be used to estimate the GST amount payable to you or by you. Whether you are a trader, buyer, or seller, you can depend on the tool to make your work easier. With the help of this easy guide, you can become a GST calculation expert in no time and reap the benefits of accurate tax planning and compliance.