The current GST rate in India is 18% for goods and services. There are slab rate of 5%, 12%, 18% and 28% for some goods and services. Started on 1st of July 2017 it replaced multiple cascading taxes levied by central and state governments. The main aim of GST is to remove double taxation and irregularities in the tax system of the country.
It is simple to calculate GST – use the GST calculator to specify amount of good and services. Choose the applicable rate from 5%, 12%, 18% (on business loan) and 28%. You get the computed value of net amount, GST amount and gross amount of the product.
GST calculator can be used in calculating output tax liability. This can be worked by multiplying GST rate with total value of advances and supplies.
For instance, Rs. 20 lakhs are total value of interstate sales with Rs. 10 lakhs being total value of intrastate sales. Now suppose interstate advanced garnered is Rs. 5 lakhs. IGST in this case will be Rs. 20 lakhs * 18% = Rs. 3,60, 000 + Rs. 5 lakhs * 18% = Rs. 90,000, i.e. the total IGST will be Rs.4,50, 000. CGST and SGST is Rs. 10 lakhs *9 % is Rs. 90,000 each.
Taxpayers with turnover up to Rs.1.5 crore will not be required to pay GST on advances arising from supply of goods. GST on these supplies will be paid when these goods are supplied.
Also Read: How to Use a GST Calculator to Know Your Liability Value
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.