Online GST calculator India
What is GST?
The term GST is commonly known as, Goods and services tax. The GST act was passed by the parliament on 29th March 2017, and it was implemented on 1st July 2017.
- GST is an indirect tax which is levied on the value addition on every transaction. Before GST established there are multiple tax that was applied and paid by the citizens of India, some of them are Excise duty, Entertainment tax, VAT (value added tax).
- GST has been divided into 3 parts, CGST (Central goods and services tax), SGST (State goods and services tax), and last one is IGST (Integrated goods and services tax). For selling goods or services within the state CGST & SGST is applied and for making sales in another state, IGST has been charged.
- GST has different tax slabs for various types of product or services, the rates are 0%, 5%, 12%, 18%, 28%. The goods that are necessary for the daily needs of a person are charged at lower tax rates, and the luxury items or products are charged at high rates i.e. 28%.
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Benefits of GST?
The advantage of implementing GST in billing software is,
Lower Tax Burden
GST helps individuals save money by applying tax only to the value added at each stage of production, instead of taxing the total cost, which includes previous taxes. This approach reduces the overall cost of goods and services.
Relief in Threshold limit
Businesses with a yearly turnover of less than ₹40 lakh for goods and ₹20 lakh for services, and for special category states, those with a turnover of ₹20 lakh for goods and ₹10 lakh for services, are exempt from filing under GST.
Composition Scheme Benefit
Taxpayers can avail benefit from composition scheme with zero long procedure and formalities. Businesses with a turnover of less than 1.5 crore and for small businesses 75 lakh can register themselves under this scheme. The manufacturers and traders of goods can pay only 1% tax on their overall turnover.
Simple Procedure
GST is a less complicated process as businesses only have to register themselves under GST directly from anywhere. With a government registered online portal they can apply for tax returns and manage their tax obligations more easily from anywhere.
Less Compliance
GST simplifies management by combining multiple taxes into a single tax system. Additionally, it allows businesses to file returns quarterly instead of monthly, saving taxpayers a lot of time. By making everything possible online, GST reduces paperwork and streamlines the compliance process.
More Transparency
By keeping digital records GST ensures that all records and transactions are made free from manipulation by keeping proper record of invoices of buyers it enhances the clarity and fairness among the taxpayers as well as the business by giving GST rates publicly. This fosters a strong positive tax environment.
Benefits of GST?
In India GST has total 4 tax rates, 5%, 12%, 18%, and 28%.
GST Slab Rate 0%
Goods - Milk, Kajal, Eggs, Educational Services, Curd, Lassi, Health Services, Children’s Drawing & Colouring Books, Unpacked Foodgrains, Unbranded Atta/Maida, Unpacked Paneer, Gur, Besan, Unbranded Natural Honey, Fresh Vegetables, Salt, Prasad, Jaggery, Broom, etc. Services – Agricultural services, Government services, Transportation services, Judicial services, Educational services, Medical services, Organizational services, and other services.
GST Slab Rate 5%
Goods - The slab 5% includes variety of items such as, Processed foods, Tea, Coffee, Spices, Soft drinks, PDS Kerosene, Footwear under ₹500, Apparels under ₹1000, Branded dry fruits, Coal, Sweets, Aerated waters, Hand tools, Unbranded fabrics, Fish, Meat, Agarbatti (incense sticks) etc. Services – Domestic Flights, Domestic Tours & Travel package, Non AC Restaurants, Newspaper Printing, Passenger transport by train, etc.
GST Slab Rate 12%
Goods - Butter, Ghee, Processed food, Almonds, Fruit Juice, Packed Coconut water, Umbrella, Stationary items, handbags, Purses, Jewellery Box, some Skincare products, etc. Services – Movie Tickets upto ₹100, Catering services, Construction services, etc.
GST Slab Rate 18%
Goods - Hair oil, Capital goods, Toothpaste, Industrial Intermediaries, Soap, Ice-cream, Pasta, Toiletries, Hair Shampoo, Corn Flakes, Soup, Printers, Computers, Water Heater, Watches, Perfume, Deodorants, Shaving, Briefcase, Furniture, Camera, Binocular, Cutlery, Branded leather clothing, Detergent, Television, Mobile Phones, etc. Services – Hotels with a bill below ₹7500 per night, AC Restaurants (Takeaway or deliveries), Telecommunication services, Diagnostic services, financial services, Movie tickets above ₹100, International Flights, etc.
GST Slab Rate 28%
Goods - Luxury goods, high-end cars, motorbikes, tobacco products, aerated drinks, certain types of cosmetics, gambling and betting services, pan masala, and some plastic products, etc. Services – Gambling and Batting services, Concerts (if ticket price exceed ₹1000), Luxury 5-star hotels with a room rent of per day exceed ₹7500, Luxury or premium food items, etc.
Impact of GST on India
India's adoption of the Goods and Services Tax (GST) has been a transformative milestone in its tax system, it has significantly reshaped the business landscape. This shift from the previous tax structure to the new GST framework has streamlined operations, fostering an environment for economic growth. Earlier we were burdened with multiple complex indirect taxes, but today businesses now benefit from a simplified model with just three main tax rates. This change not only enhances efficiency and compliance but also encourages entrepreneurship throughout the country, promising a future of sustainable advancement.
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