How to calculate GST Return

Introduction: Do you find yourself in a situation where you find it difficult to calculate GST return? Are you a supplier of goods and services but unaware of the process of calculating indirect tax, and GST? Are you looking for some readymade GST calculators? If the answer to all the above questions is Yes, then we at LegalMart will help you easily calculate the GST Return on all the goods and services that you supplied. In this article, we have come up with detailed information about GST, types of tax heads under GST, how to use the GST Calculator, and the formula for calculating GST that too with a solved Example.

What is Goods Service Tax(GST)

The most comprehensive, multi-stage, destination-based indirect tax levied on the goods and services supplied in India is called the Goods Service Tax (GST). It is the tax that has replaced most of the indirect taxes in India. It has come into existence in July 2017. There are five distinct tax rates charged 0%, 5%, 12%, 18%, and 28% for different categories of goods and services. There are also some products like alcoholic drinks, petroleum products, and electricity that are not charged under GST. Such products have different criteria for tax depending upon the individual state government on their previous tax policies.

Different categories of Tax Heads under GST

The Goods and Services Tax (GST) is divided into four categories: Central Goods and Service Tax (CGST), State Goods and Service Tax (SGST), Union Territory Goods and Service Tax (UTGS)

 Integrated Goods and Service Tax (IGST). When goods and services are exchanged between the states, an integrated goods and service tax is applied. It means it is charged for interstate transactions of goods or services. Whereas, when there are intrastate supplies that means an exchange of goods within the state, in that case, CGST and UGST are applied which is approximately half of the integrated goods and service tax.

What is a GST Calculator?

No more manual calculations. GST Calculator is designed to reduce the monotonous task of calculating GST manually. It is an automated designed calculator that computes monthly or quarterly tax payable amounts. Any buyer, manufacturer, or wholesaler can easily use this GST Calculator.

Steps to calculate GST using LegalMart GST Calculator

Legalmart has come up with an easy-to-use automated GST Calculator that one can easily use to calculate the return amount. The following simple calculations can be made:

Step 1: You should provide the following details.

●       The net value of Goods or Services

●       Find the GST rate as applicable for the category of Goods or Services. It may be 5%, 12%, 18% or 28%.

Step 2: In the next step, you are required to click on ‘Calculate’ as you have seen on the LegalMart Tax Calculator. Once you click on to ‘Calculate’ button, you will get the tax amount under tax head CGST, IGST, and SGST. You will get information about the gross value of the goods and services that will be billed.

The formula for GST Calculator

No matter, if you are a businessman, manufacturer, wholesaler, or retailer, you can easily calculate the amount of GST using a very simple GST formula. The formula for GST Calculation is:

1)     Goods Service Tax= Gross Value of Goods and Services * GST %

Billing Amount to be billed on Invoice = Gross Value of Goods & Services Supplied + GST calculated above.

or

2)     GST amount Invoice value of supplies – Gross Value of Goods and Services

Solved Example to understand GST Calculation

●       Let us illustrate the above calculation with the following example.

Selling Price of Goods  = Rs 200000

GST Rate on Goods = 18%

GST amount = 200000 x 18/100

                       = Rs 36000

Total Billing Amount = Rs 200000 + Rs 36000

                                     = Rs 236000 only

 

●       Let us understand this with one more example

Selling Price of Goods  = Rs 120000

GST Rate on Goods = 5%

GST amount = 120000 x 5/100

                       = Rs 6000

Total Billing Amount = Rs 120000 + Rs 6000

 = Rs 126000 onlye7,

Conclusion:

In the last, we hope by now, you must have completely understood the steps of calculating GST return. Its formula does not involve any science but is an easy formula to learn. By practicing repeatedly, you can easily achieve mastery over its calculation. Moreover, LegalMart is always there for you to make GST return calculations. The team of professional experts at LegalMart will even assist you in filing a GST Nil Return. To know more about it, contact your LegalMart team immediately.