GST is the single taxation system on goods or services. It has made the taxation system easy to understand and comply with. It reduced multiple layers of taxes levied by state and central government. Single taxation is beneficial for the taxpayer and government equally. It reduces the amount of tax paid and is easy to calculate and collect. Some of the benefits of GST
The purpose of GST is to bring uniformity in the taxes and integrate the whole economy. It will make Indian products internationally competitive and give a boost to make in India as well.
It will help government revenue to stay afloat and improve the country’s ranking in for doing business index.
The benefits of GST are innumerable like GST prevents the cascading of taxes as the complete supply chain gets an all-inclusive tax credit mechanism.
Lesser complications will ensure more efficiency and synchronization. Dispute settling regarding taxation will become easier.
The format of tax returns and tax base will be common with the system of an assortment of products and services and timeline ensuring greater certainty in the taxation system. The same GSTIN portal will be used by all taxpayers making the procedure faster.
Due to the single taxation industry will have to shell a lesser amount on tax thus increasing their profit margin, reducing price, increasing demand, and in turn increasing production.
GST aims to ensure that payments and compliances are done online, and input credit can only be availed when the supplier accepts the amount, thus ensuring that these industries have regulation and accountability.
Small businesses whose turnovers range from Rs.20 lakh to Rs.50 lakh will be subject to lower taxes if they opt for the composition scheme. Login to GST portal at the earliest possible to take the advantage of registration under GST.
GST Calculator helps in calculating the GST amount on different goods or services accurately. It makes calculating tax easier.
With the unified tax system, it is now possible for all the taxpayers to know the tax imposed at different points for various goods and services under the GST regimen. Every taxpayer should know the GST rate applicable to various categories that are required for GST calculation. There are five different slabs for GST 0%,5%, 12%, 18%, and 28%.
GST Calculation Formula
For calculating GST, a taxpayer can use the below-mentioned formula:
Add GST
GST Amount = (Original Cost * GST% ) / 100
Net Price = Original Cost + GST Amount
Remove GST
GST Amount = Original Cost – (Original Cost * (100 / (100 + GST% )
Net Price = Original Cost – GST Amount
GST has simplified the process of taxation and eased the burden of taxes. It expanded the base of taxation and made compliance easy. Online GST calculators have further made the life of taxpayers easy by simplifying the calculation of taxes in easy steps. Register on GST portal to reap the benefits of GST.
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