1. What is GST?

GST (Goods and Services Tax) is a value-added tax levied on most goods and services sold for domestic consumption. It's a comprehensive indirect tax that has replaced many indirect taxes in India.

2. How Does the Calculator Work?

The calculator uses the simple GST formula:

Where:

• \( Amount \) — The base amount before tax (INR)
• \( Rate \) — The applicable GST rate (percentage)

Explanation: The calculator multiplies the amount by the GST rate (converted to decimal) to calculate the tax amount, then adds it to the original amount to get the total.

3. Importance of GST Calculation

Details: Accurate GST calculation is essential for businesses to determine their tax liability, file returns correctly, and maintain compliance with tax regulations.

4. Using the Calculator

Tips: Enter the base amount in INR and the GST rate as a percentage (e.g., 18 for 18%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are the different GST rates in India?
A: India has four primary GST rates: 5%, 12%, 18%, and 28%, with some items exempt or taxed at special rates.

Q2: Is GST calculated on the MRP?
A: No, GST is calculated on the base price before tax. MRP is the maximum retail price that includes all taxes.

Q3: How is GST different from VAT?
A: GST is a comprehensive tax applied at each stage of the supply chain with input tax credit, while VAT was applied only at the sale point.

Q4: Can I claim GST input credit?
A: Yes, businesses can claim credit for GST paid on inputs against GST liability on outputs, subject to certain conditions.

Q5: When are GST returns filed?
A: Regular taxpayers must file monthly returns (GSTR-1, GSTR-3B) and an annual return (GSTR-9).