GST Calculator: As announced by the Indian government, we all know that the implementation of the curriculum of GST will be laid upon from 1st July 2017. Well, for those who yet are not sure of the full form for GST, GST stands for Goods and Services Tax. The basic reason for the implementation of the Goods and Services Tax (GST) is to convert all the transactions taking under the ground now to happen over the ground. Today, our main focus of concern will be about the GST Calculator. Now, when we mention the term “GST Calculator,” we focus on the method of calculation of such taxes. Today, we shall give you complete information on GST Calculator so that you have a clear idea of what is to come up in the near future.
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GST Calculator
Still, in people’s minds, there are queries and doubts relating the calculation of the payable amount of tax, the credit of input tax, TDS, and refund, which are known to be deducted under the curriculum of Goods and Services Tax (GST). In this insight to GST Calculator, we will try to solve all these doubts or queries.
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Calculation of tax under the curriculum of Goods and Services Tax (GST)
To make your understanding easier, we have constructed a table of the below kind in accordance to the GST Calculator, to give you or illustrate you with the difference in the amount of payable tax and the advantages of the availability of input tax credit to the dealers or the manufacturers.
| PARTICULARS | VALUE AND TAX AMOUNT UNDER CURRENT LAWS | VALUE AND TAX AMOUNT UNDER
GST LAW. |
| Value to manufacturer | ||
| Production cost | 100000 | 100000 |
| Add Profit Margin @10% | 10000 | 10000 |
| Add excise duty @12% | 13200 | |
| Total cost of production | 123200 | 110000 |
| Add VAT @12.5% | 15400 | |
| Add SGST @6% | 6600 | |
| Add CGST @6% | 6600 | |
| Invoice value for manufacturer | 138600 | 123200 |
| Value to wholesaler | ||
| Cost of goods | 138600 | 123200 |
| Add profit margin @10% | 13860 | 12320 |
| Total Value | 152460 | 135520 |
| Add VAT @12.5% | 19058 | |
| Add SGST @6% | 8131 | |
| Add CGST @6% | 8131 | |
| Invoice value to wholesaler | 171518 | 151782 |
| Value to Retailer | ||
| Cost of goods | 171518 | 151782 |
| Add Profit margin @10% | 17152 | 15178 |
| Total Value | 188670 | 166960 |
| Add VAT @12.5% | 23584 | |
| Add SGST @6% | 10018 | |
| Add CGST @6% | 10018 | |
| Invoice value to retailer | 212254 | 186996 |
*Do take into consideration that in the above-mentioned example, the rates of Goods and Services Tax (GST) have been assumed to be at a rate of 12%. Also, note that this is being shared in equal ratios and proportions between the government at Central and State level.
Read More: What is SGST, CGST, and IGST?
Assessment of Goods and Services Tax (GST) Calculator
After having a careful look at the above table based on GST Calculator, now, it is time to take a note of the three most crucial changes in accordance with the above table of example.
- Excise Duties being subsumed
To understand the concept behind “excise duties being subsumed,” it is mandatory first to understand what is meant by “excise.” Excise is termed for the amount which is being charged on the capital goods, used by the manufacturer during the course of manufacture of a certain product. Under the curriculum of Goods and Services Tax (GST), the excise duties will be subsumed, the reason for this being the implementation of a single tax being charged at a particular rate for each good. The customers are the ones who will be most relieved on the removal of excise.
- Cost reductions
The fact of subsuming various existing taxes like service tax, value added tax (VAT) and excise, according to the GST Calculator, there will be a reduction in the cost for the manufacturers or wholesalers or retailers. As you can observe in the above-specified example through a table, there exists a reduced cost from ₹171518 to ₹151782, which is again in accordance to the GST Calculator. Again, due to the presence of better logistics, Goods and Services Tax (GST) will be further helping in reducing the total cost to the manufacturer as the cost of procurement.
- Credit of input tax being reduced
According to the law or curriculum of Goods and Services Tax (GST) and in accordance to the GST Calculator, the credit for input tax will be reduced for the wholesalers or the retailers. The reduced amount of credit of input tax is due to the reduction of the total cost as per the laws or in according to the curriculum of Goods and Services Tax (GST).
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Calculation of tax for sales in interstate level
In accordance with the curriculum of Goods and Services Tax (GST) or the laws of Goods and Services Tax (GST), a new concept has been brought about. This concept is named “Integrated Goods and Services Tax (IGST).” In earlier times, on the total cost and above the value added tax (VAT), CST was being charged along with the duties of excise in cases where goods used to be transferred or sent from one state to another state. The implementation of Integrated Goods and Services Tax (IGST) will change the scenario in this field and imply charges of a single tax, in cases when goods are being moved from one state to another state, which will definitely be calculated on the basis of the GST Calculator.
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Let us again like before, construct an example through the format of the table, to understand the concept of Integrated Goods and Services Tax (IGST) in an easier way. Please note that all the following favorable calculations of the table are based on the GST Calculator.
| PARTICULARS | UNDER CURRENT TAX LAWS | UNDER GST |
| Value to Retailer | ||
| Cost of goods | 100000 | 100000 |
| Add VAT @12.5% | 12500 | |
| Add IGST @12% | 12000 | |
| Add CST @2% | 2250 | |
| Total Value to retailer | 114500 | 112000 |
*For the calculations based on this example, do take into consideration that the rate of tax charged under the Integrated Goods and Services Tax (IGST) is assumed or taken into consideration to be a rate of 12%.
Let us now construct a table of reference to give you a clear idea as to when the different taxes, namely, Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST) and Integrated Goods and Services Tax (IGST) are to be charged or implied.
| CIRCUMSTANCES | CGST | SGST | IGST |
| Goods sold from Delhi to Bombay | NO | NO | YES |
| Goods sold within Bombay | YES | YES | NO |
| Goods sold from Bombay to Pune | YES | YES | NO |
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The concept of “Reverse Charge” in accordance to GST Calculator
Under general circumstances, the amount of calculated tax in accordance to the GST Calculator shall be paid by the supplier for the supply of goods. But, there are some cases, when the scenario gets reversed. In such cases, the scenario stands that the receiver has to bear the liability of paying the calculated amount of tax, which is in accordance to the GST Calculator. In other and simpler words, there is a reverse in the charge ability of the calculated amount of tax. This reverse in the charge ability, which is in accordance to the calculator of GST, is commonly termed as “Reverse Charge” under the accordance of GST Calculator.
This concept of “reverse charge” is already known to many people because it already exists in the curriculum or the laws of the existing service tax. Under the curriculum or laws of Goods and Services Tax (GST), the concept of “reverse charge” will now be applicable on new goods as well as the services laid.
Rates of Goods and Services Tax (GST) Calculator for different products
The following table is constructed to illustrate you with a clear idea about the different rates which are going to be implemented in the calculation of Goods and Services Tax (GST).
| Tax Rates | Products | |
| 0% | Milk | Kajal |
| Eggs | Educations Services | |
| Curd | Health Services | |
| Lassi | Children’s Drawing & Colouring Books | |
| Unpacked Foodgrains | Unbranded Atta | |
| Unpacked Paneer | Unbranded Maida | |
| Gur | Besan | |
| Unbranded Natural Honey | Prasad | |
| Fresh Vegetables | Palmyra Jaggery | |
| Salt | Phool Bhari Jhadoo | |
| 5% | Sugar | Packed Paneer |
| Tea | Coal | |
| Edible Oils | Raisin | |
| Domestic LPG | Roasted Coffee Beans | |
| PDS Kerosene | Skimmed Milk Powder | |
| Cashew Nuts | Footwear (< Rs.500) | |
| Milk Food for Babies | Apparels (< Rs.1000) | |
| Fabric | Coir Mats, Matting & Floor Covering | |
| Spices | Agarbatti | |
| Coal | Mishti/Mithai (Indian Sweets) | |
| Life-saving drugs | Coffee (except instant) | |
| 12% | Butter | Computers |
| Ghee | Processed food | |
| Almonds | Mobiles | |
| Fruit Juice | Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly | |
| Packed Coconut Water | Umbrella | |
| 18% | Hair Oil | Capital goods |
| Toothpaste | Industrial Intermediaries | |
| Soap | Ice-cream | |
| Pasta | Toiletries | |
| Corn Flakes | Computers | |
| Soups | Printers | |
| 28% | Small cars (+1% or 3% cess) | High-end motorcycles (+15% cess) |
| Consumer durables such as AC and fridge | Beedis are NOT included here | |
| Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess) |
Hopefully this insight to GST Calculator was helpful in illustrating you with how the different taxes under the curriculum or law of Goods and Services Tax (GST) would be implemented and also the different rates at which the Goods and Services Tax (GST) would be implemented for the different products, as per declaration of the Indian Government.
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