Your Guide To Easy Tax Calculation Under GST

Your Guide To Easy Tax Calculation Under GST
GST stands for Goods and Services Tax and is an indirect tax that has been implemented in India to improve the general economic condition of the nation. It has been levied on all the goods and services that are produced or exchanged in the country. In a nutshell, GST is a rather comprehensive tax that has helped the Government to remove multiple taxes on the same product or service. GST was implemented on 1st July 2017, and since then, it has successfully replaced several indirect taxes that would increase the final price of the commodity and reduce the buyer's purchasing capacity.

However, please note that GST does not include every commodity yet. Some of the most important things regulated by state governments instead of the Central Government are alcohol, petroleum, and electricity.

What Are The Different Types Of GST?

Precisely, four different types of GST have been levied by the Government. This has helped the Government regulate the flow of goods and services in individual states as well as inter-state transactions.

These four GST tax categories are:
  • CGST- Central Goods and Services Tax
  • SGST- State Goods and Services Tax
  • IGST- Integrated Goods and Services Tax
  • UGST- Union Territory Goods and Services Tax

While the names make most of the tax schemes clear, you must be wondering what is IGST.

In simple terms, some transactions take place between states, known as interstate transactions. Thus, in instances where the receiver’s location is different from the place of supply, the Indian Government can levy IGST.

What Is A GST Calculator?

Now that you know what GST is, and the different types of GST taxes that have been implemented in India, you must also understand what a GST calculator is. It is a very simple online calculator that will calculate how much GST you need to pay monthly or quarterly.

What Are The Advantages Of A GST Calculator?

  • The biggest benefit of using a GST calculator is that you can easily calculate the final price of a product by determining the GST rates and the percentage that you will have to pay as taxes.
  • Since it is an online GST calculator, the possibility of introducing human error during calculation is significantly reduced. You can easily determine how much profit you will make and how much is supposed to be paid as tax.
  • Ultimately, you get the exact sum of tax that you need to pay. The Indian Government is very strict when it comes to the payment of taxes. Failing to do so might lead to some serious consequences.

How Can Khatabook Help You Calculate GST Online?

We understand that calculating your GST can be rather confusing if the figures are big.

Thus, you should use Khatabook's online facilities to calculate your GST.

All you need to do is…
  • Step 1: First, you need to enter the correct net price of your product and service. Then, you must enter the GST rate that is applicable. Please note that the applicable GST rates are 5%, 12%, 18%, and 28%. Accordingly, you must enter the details. If you do not know the GST rate applicable to your product, there is nothing to worry about. You can easily access the GST rate list online and get exact figures.
  • Step 2: Then, you must click on the calculate button. The Khatabook online GST calculator is excellent and promises to display accurate results.
Your Guide To Easy Tax Calculation Under GST

What Is The GST Calculation Formula?

If you are a trader, a dealer, wholesaler, retailer, or any business-person, you must know the GST calculation formula.

There are two formulas to calculate GST:

When GST is Excluded from the Value of Goods and Services

First, we calculate the GST amount that is equal to (‘value of the goods and services’ x ‘GST rate’) divided by 100.

Then, the price that you need to charge is the (‘value of the goods and services’ + ‘the GST amount’).

When GST is Included in the value of Goods and Services

The GST value is equal to the value of the goods and services- [‘Value of supply’ x ‘{100/(100+GST%)}’]

What Are The General Benefits Of GST?

The impact of GST on the Indian economy is no secret. Thus, you must read ahead to know some of the top benefits that the population has experienced.
  • Consumers got freedom from the 'cascading effect'. This means that they no longer need to bear the burden of multiple taxes with individualized rates that would have increased the price of the final product.
  • Traders and merchants can easily engage in inter-state transactions because the rate of tax is standardised. This makes dealing with customs and excise officials a lot easier.
  • The Composition Scheme under the present GST system has helped small business owners.

Why You Should Choose Khatabook?

  • You must choose Khatabook because it is one of the best applications that can help you to manage your business and personal ledgers. Khatabook is available on every major smartphone OS, and provides useful features when you install the mobile app.
  • The app is available across India in 11 languages so you can understand everything better in any language of your choice.
  • Your financial records and transactions are backed online, so you do not need to panic in case you lose your phone.
  • A free SMS reminder will always ensure that you pay your taxes on time allowing you to clear your pending payments.
  • Last but not least, you can take the easier and more reliable financial decisions because you get a complete report of your statements and accounts.

Thus, you must use the Khatabook online GST calculator to calculate how much tax you need to pay.

By paying taxes timely and accurately with Khatabook, you are participating in the nation's economic progress and performing the duties of a responsible Indian citizen.
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