Free GST Bill Calculator

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GST Type

What is GST?

Goods and Service Tax (GST) is an indirect tax that manufacturers, wholesalers, retailers and consumers have to pay on consumer goods and services. It is a destination-based and multi-stage tax which is charged on every value addition. Passed in the Indian Parliament on 29th March 2017, the act came into effect from July 1, 2017. Replacing all indirect taxes like central excise duty, service tax, customs duty, VAT, Octroi and surcharges, the implementation of GST has simplified the taxation processes for businesses.

What is intrastate and interstate GST?

Intrastate GST and Interstate GST refer to the way Goods and Services Tax (GST) is applied depending on the location of the buyer and seller within India.
  1. Intrastate GST:
    • Applies when a transaction occurs within the same state.
    • GST is divided into CGST (Central GST) and SGST (State GST).
      • Example: If a seller in Delhi sells to a buyer in Delhi, CGST and SGST are charged.
  2. Interstate GST:
  • Applies when a transaction occurs between two different states or union territories.
  • IGST (Integrated GST) is charged, which combines both central and state taxes.
Example: If a seller in Maharashtra sells to a buyer in Karnataka, IGST is charged. In essence, intrastate GST involves two types of taxes (CGST + SGST), while interstate GST involves only IGST.

How to calculate GST using a GST calculator?

You can easily use the GST calculator online by following the steps mentioned below:

  • Enter the net price of a service or good and the GST slabs such as 5%, 12%, 18% and 28% into the tool.
  • Click on the ‘Calculate’ button and get to know the final or gross price of goods and services.

GST calculation formula:

Businesses, manufacturers, wholesalers and retailers can easily calculate GST using this formula:

Simple GST calculation

  1. Include GST:
    • GST amount = (Original cost x GST%)/100
    • Net price = original cost + GST amount
  2. Exclude GST:
  • GST amount = Original cost - [Original cost x {100/(100+GST%)}]
  • Net price = Original cost - GST amount

Here’s an example to illustrate this:

  Rate (%) Amount
Original cost of goods   Rs.1,00,000
GST 18% Rs.18,000
Cost of goods sold   Rs.1,18,000

GST calculation for manufacturers:

  Rate (%) Pre- GST Post- GST
Cost of product   10000 10000
Excise duty 12% 1200 Nil
Profit 10% 1000 1000
TOTAL   12200 11000
VAT 12.50% 1525 Nil
CGST 6% Nil 660
SGST 6% Nil 660
Final invoice to the wholesaler   13725 12320

At a cost point of Rs.10,000, the manufacturer is saving Rs.1405 i.e. a 14% tax saving on the cost. This brings a cost reduction for manufacturers, the benefit of which is ultimately passed on to the wholesalers, retailers and consumers.
 

GST calculation for wholesalers and retailers:

  Rate (%) Pre- GST Post- GST
Cost of product   13725 12320
Profit 10% 1373 1232
TOTAL   15098 13552
VAT 12.50% 1887 Nil
CGST 6% Nil 813
SGST 6% Nil 813
Final invoice to the consumer   16985 15178

GST brings down the cost of the product and thus, the consumer pays a lesser price for the goods at the same profit% earned by wholesalers and retailers.

What are the benefits of using a GST calculator?

The online GST calculator help you to find out either gross or net product price on percentage-based GST rates. It saves time and reduces chances of human error while computing the total cost of goods and services.