The indirect tax imposed on the provision of goods and services is known as the “goods and services tax,” or GST. With effect from July 1, 2017, all indirect taxes in India were superseded by the Goods and Services Tax (GST) system. With the rise of complexities in GST, business persons are aware of how to make invoice in Excel. Read ahead to know more.
Different types of Taxes under GST
The government collects GST in the following several forms:
- The State Government is responsible for collecting State GST (SGST).
- The Central Government collects Central GST (CGST)
- The Integrated GST (IGST) for imports and interstate transactions.
- The Union Territory Government is responsible for collecting Union Territory GST (UTGST).
What is GST Inclusive?
The entire value of the product after the GST amount has been deducted from its initial value is referred to as the “GST inclusive amount.” The consumer is not billed individually for the tax.
What is the GST Exclusive Amount?
GST The term “exclusive amount” refers to the product’s worth after deducting the GST amount from its GST-inclusive value.
Advantages of Online GST Calculator Use
There are several advantages to using goods and service tax calculators for individuals, companies, and organizations.
Accuracy
Manually calculated GST or regular calculators are prone to inaccuracies. Issues with GST compliance might result from a simple misspelling. Because it is automated, the GST Calculator assures accuracy in computations by removing the chance of human error.
Time-saving
Compared to manual calculations, the calculator’s instantaneous computations save a significant amount of time as compared to generating invoices in excel.
Ease of Use
With simple input fields and intuitive interfaces, the GST amount calculator is easy to use. To get the precise amount of GST payable or receivable, just input the original price and choose the applicable GST rate.
Versatility
The total amount may also be determined using the GST rate, total amount, and GST on value-added amount alone.
Cloud access
Businesses with several locations or people who need to compute GST on the fly can especially benefit from this ease. There are certain GST calculators who offer access.
GST Rates in India
| GST Rate (IGST) | SGST | CGST | Goods |
| 0% | 0% | 0% | Essential goods and services, such as fresh fruits and vegetables, grains, milk, healthcare services, education services, and select exports |
| 5% | 2.50% | 2.50% | Processed food items, clothing, basic household items like sugar and tea, and some transportation services (economical) |
| 12% | 6% | 6% | Medicines, clothing, mobile phones |
| 18% | 9% | 9% | Most of the consumer durables like electronics, hotel accommodation, IT services, restaurant services |
| 28% | 14% | 14% | Luxury items, automobiles, tobacco products, aerated drinks, and other demerit goods. |
How to calculate GST using a GST calculator?
The formula for GST calculation
GST Amount = (Taxable Value*GST Rate Percentage) / 100
Invoice Value = Original Cost (Taxable Value) + GST Amount.
Examples to help you comprehend how GST is calculated:
Assume that in 2023, a business owner in the electronics sector manufactures high-end devices (18% tax rate applicable) that are individually valued at ₹500. These devices are then sent to a warehouse for packing and labeling. The value of the products is increased by ₹50 by the warehouse. Sell it to the retailer after that. The shop adds the ₹50 cost of its marketing. Let’s dissect it.
The Product of the Entrepreneur
Assume the role of an entrepreneur who develops a product, such as a high-tech device. This device is produced for ₹500.
Forwarding to the Storage Facility
You send your device to a warehouse to enhance its appearance. The warehouse upgrades your device with new labels, packaging, and other features. These upgrades came at a ₹50 cost.
Offering Goods to the Store
After receiving the upgraded device, the warehouse sells it to a retailer. In this instance, the merchant chooses to include a ₹50 advertisement because they wish to promote your device.
Let’s now examine how GST is applied
In our scenario, GST functions as follows:
We must first determine the nature of the transaction to compute GST by the updated GST rates. The example transaction involves the sale of items from a producer to a warehouse, followed by a retailer from the warehouse. Since this is a taxable supply, 18% GST will be applied.
| Particulars | Cost | Tax @18% | Tax liability deposited to Gov | Invoice total |
| Manufacturer | 500 | 90 | 90 | 560 |
| Warehouse adds Rs.50 for labeling & packaging | 550 | 99 | 9 | 649 |
| Advertisement cost of ₹50 added by the retailer | 600 | 108 | 9 | 708 |
| Total | 600 | 708 |
A detailed explanation of how to compute GST by the updated regulation is provided below:
- Ascertain the supply’s taxable value. The entire value of the supply, including the profit margin, any additional costs paid by the provider, and the cost of the items, is the taxable value. In the example provided, the warehouse’s taxable value is ₹550, whereas the manufacturer’s taxable value is ₹500.
- To determine the GST due, multiply the taxable value by the GST rate. In the example provided, the manufacturer’s GST liability is ₹90 (18% of ₹500), and the warehouse’s GST liability is ₹99 (18% of ₹550).
- Pay the government the amount of the GST obligation. Within the allotted time, the seller must pay the government the amount of GST owed.
- Determine the total amount due on the invoice. The taxable value plus the GST obligation equals the invoice total. The manufacturer’s invoice in the case is for ₹590, and the warehouse invoice is for ₹ 649 total.
- Businesses now find it simpler to compute and pay GST as a result. It’s also critical to remember that the provider deposits the GST responsibility with the government.
Wrapping It Up
Still wondering how to make invoice in Excel? By using Excel’s customizable templates and formulas, you can produce professional invoices that cater to your specific business requirements
FAQs
How does one use a GST calculator?
A GST calculator may be used to determine how much GST will be due over a certain period.
To whom is the GST calculator accessible?
Buyers, manufacturers, and wholesalers can all utilize the GST calculator.
How is the GST calculator to be used by a buyer?
After entering the taxable value before GST, enter the GST rate. It will compute the total tax, CGST, SGST, and invoice value.
How is the GST calculator to be used by a manufacturer or wholesaler?
Enter the percentage of the profit ratio, the rate of GST, and the cost of production/goods. It will display the total tax, CGST, SGST, and manufacturing cost.
What advantages does the GST calculator offer?
When calculating the entire cost of goods and services as well as the amount of tax, the GST calculator saves time and lowers the possibility of human mistakes.
