Goods and Services Tax or GST is a destination-based, indirect tax implemented on the supply of goods and services. What makes GST unique is its ability to simplify indirect taxes. It does so by providing a detailed tax structure for distinct goods and services under a single tax bracket. With the implementation of GST, the government aimed to enhance the ease of doing business.
GST impacts consumers as well as businesses, making it important to understand GST rates and other related calculations. With compliance with GST, you may enjoy better benefits on business loans and even tax evasion.
Understanding GST and having your GST calculation done can come in handy when applying for business loans.
What Is a GST Calculator?
A Goods and Services Tax Calculator is an effective tool that can be used to estimate the GST amount payable by you for a specific time. The calculation here is based on the goods and their tax rates. Using a GST calculator can ease your GST calculation, too, with much precision and efficiency.
The calculator can be quite helpful for buyers, sellers, and businesspeople alike. Using this simple online tool helps you calculate the gross price of a product or service. It also helps in the categorization of rates as CGST, SGST, or IGST.
How to Use a GST Calculator?
Looking to figure out tax components or compliance with tax regulations, using the online GST calculator by LendingKart can help. Using the same is quite simple. Here is a step-by-step guide on how to use an online GST calculator:
- Adjust the net price of an item.
- Choose whether the amount is GST Inclusive or GST Exclusive.
- Fill in the GST rate of that product/service.
- Tap on “Calculate.”
- You may now see the total amount and the GST amount.
Benefits of Using a GST Calculator?
Running a business requires making several calculations. For example, calculating your business loan EMIs, GST payments, and much more. Using tools like business loan EMI calculator and GST calculator, respectively, can help you predict your monthly repayments and GST payouts.
Here is why you should consider using a GST calculator:
- Better Accuracy
GST calculators can be used for accurate calculations reducing the chances of errors made in manual estimations. Accurate estimation is crucial for your financial compliance and planning.
- Simple to Use
Running a GST calculator is easy. LendingKart GST calculators are designed to be user-friendly and help you make calculations with minimal inputs. This ensures individuals with basic and no professional tax knowledge can also rely on these calculators. Further, online calculations are fast, so you need not spend much time on manual calculations.
- Budget-friendly
The best part about most of the GST calculators available online is that they are free. This means that all consumers and businesses can use these calculators for precise estimations without needing any paid software or professional management.
- Up-to-date Information
The best GST calculators, like the LendingKart Online GST calculator, are consistently updated along with any changes in the GST rates. This ensures you do your business while complying with the latest tax regulations.
- For Segregation of Tax Components
GST calculators can come in quite handy to separately calculate your SGST, CGST, or IGST amounts. This ensures you do not need to manually exploit your brain to use the GST formula every time for predicting the tax components.
Choosing the Top GST Calculator
To ensure you choose the top GST calculator, you may consider several factors. For example, look into the inputs you need to fill in for the final calculation. See if the calculator is easy and simple to use. Are you able to read it properly or do you need some guidance? You can also consider factors like the flexibility of the GST calculator. For example, how smooth and quick is it to adjust to the changes in the GST rates and amount?
Final Word
A GST calculator can be of great help to consumers as well as businesspeople. It allows you to easily and quickly calculate your GST payments so that you apply for suitable loans, facilitate working capital management, and enjoy better tax benefits. Try keeping it handy when applying for a business loan to make your application smooth and faster.
You may also keep other documents ready, like your MSME certificate, tax compliance, loan repayment history, and so on. Honing all these documents and making all the calculations can help you understand if you are eligible for different types of business loans, including MSME loans or schemes like the Stand Up India Scheme. You may avail of their benefits and help your business grow at lower interest rates and better repayment terms.