Gravity Power Solution
GST Calculator
Indian GST Calculator
Amount includes GST or excludes GST. The calculation is performed based on the selected option, and the results are displayed accordingly. The “Net Amount (excluding GST)” is shown when the price includes GST, and the “Final Amount (including GST)” is shown when the price excludes GST.
How GST is Calculated?
GST in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. The calculation is relatively straightforward:
For Consumers: The GST paid by consumers is included in the final price of goods or services. The tax is collected by businesses on behalf of the government and later submitted.
For Businesses: They calculate GST on their sales, known as output GST, and deduct the GST they paid on their purchases, known as input GST. The difference is what they pay to the government.
GST Calculation Formula:
- Add GST: Original Cost + (Original Cost × GST%) = Cost with GST
- Remove GST: Original Cost = Cost with GST / (1 + GST%)
Percentage of GST in India
As of my last update, GST in India is divided into four primary slabs: 5%, 12%, 18%, and 28%. Additionally, certain items like precious metals have a different rate (currently 3%), and some essential items are exempt from GST.
GST Rate for Products and Services Provided to the Government
GST rates for products and services provided to the government can vary based on the type of service or product. Typically, these are subject to the standard GST rates (5%, 12%, 18%, 28%). However, there are certain exceptions and special considerations:
Works Contract Services: These are often crucial in government projects. The GST rate for government works contracts is typically at 12%.
Specific Exemptions: Certain government services, such as services by way of any activity about a function entrusted to a Panchayat or Municipality, are exempt from GST.
Reverse Charge Mechanism: In certain cases, the government pays GST directly to the government under the reverse charge mechanism. This is typical when services are procured from unregistered suppliers.
Special Provisions for Specific Goods/Services: For example, defense equipment and other specific goods or services procured by the government might have special provisions or exemptions.