How the GST is calculated?
First, you must understand the types of GST that are available – CGST, SGST and IGST. Both CGST and SGST are for by the GST registered company/person who supplies goods within a particular state. IGST is applicable to all companies/persons who are involved in the import/export business. The percentage of rates varies accordingly.
HSN and SAC codes with the GST help determine the government how much tax to charge on various items. There are 4 slabs under GST which can be taken into consideration – 5%, 12%, 18% and 28%.
Once you register your company under GST, you get a GSTIN alphanumeric number, which states the percentage of tax you have been categorised under. GST calculator helps you in the easy calculation of the GST amount.
You can be your own GST calculator through understanding the following:
The net price of an item is basically the actual cost plus the GST amount. If the item you sell falls under the 12% slab, then your MRP would be actual cost plus 12%.
Suppose your actual cost for an item is 100 rupees, then the selling price would be 100+12% of 100 = 112 rupees
Similarly, when you buy any goods, it is always the actual price plus the percentage that item falls under