What is a GST Calculator?
A GST (Goods and Services Tax) calculator is a handy tool designed to compute the exact tax amount levied on different products and services in India. Whether you are a business owner generating invoices or a consumer verifying a bill, the Anivicus GST Calculator helps you instantly find the gross and net prices of a product.
How to Calculate GST using our Tool?
Our calculator simplifies the process by offering two specific modes:
- Add GST (Exclusive): Use this mode when you know the base price of a product and need to add GST to find the final selling price. The formula used is:
GST Amount = (Base Price × GST%) / 100
- Remove GST (Inclusive): Use this mode when you know the final MRP of a product and want to work backward to find out how much tax was included and what the original base price was. The formula used is:
GST Amount = Original Price - [Original Price × {100 / (100 + GST%)}]
Understanding CGST, SGST, and IGST
GST in India is a destination-based tax system. Depending on where the sale takes place, the total GST is split into different components:
- CGST (Central GST): Collected by the Central Government on an intra-state sale (e.g., selling from Jhansi to Lucknow). It is exactly half of the total GST rate.
- SGST (State GST): Collected by the State Government on an intra-state sale. It makes up the other half of the total GST rate.
- IGST (Integrated GST): Collected by the Central Government for inter-state sales (e.g., selling from Uttar Pradesh to Madhya Pradesh). It equals the total GST rate.
Current GST Slabs in India
The GST Council of India has classified goods and services under different tax slabs:
- 0% (No Tax): Essential commodities like fresh fruits, vegetables, milk, and printed books.
- 5%: Household necessities, life-saving drugs, and economy class flight tickets.
- 12%: Computers, processed food, and non-AC restaurants.
- 18%: Most services, telecom, IT services, hair oil, toothpaste, and standard electronics. (This is the most common GST slab).
- 28%: Luxury items, automobiles, aerated drinks, and tobacco products.