18 Percent GST: Goods and Services Tax (GST) are value added tax levied on goods and services mostly meant for domestic consumption. There are four major categories in which GST is classified, which we will learn in this article. However, we can also calculate our GST amount online based on the item and the slab in which GST rate is included. Here, we will also learn formula to calculate the GST amount online.
What is GST?
GST or Goods and Services Tax, comes under value added tax charged indirectly on various domestic goods and services by the government of India. Various products and services are classified in four major categories, such as 0%, 5%, 12%, 18% and 28% tax rates. Every domestic item or service is covered by one of these tax rates, which is added to the Maximum Retail Price (MRP).
Different Tax Heads on GST in IndiaÂ
There are four major tax heads in India, which is levied on various transactions. Check out some key tax heads below.
1. Central Goods and Service Tax (CGST)
It is levied by the Central government on inter-state supplies of goods and services. The revenue generated from the CGST is deposited directly with the central government.Â
2. State Goods and Service Tax (SGST)
This GST tax is levied by the state government on intra-state supplies of domestic goods and services in India. The total revenue generated from the SGST tax service is deposited with the State government.Â
3. Integrated Goods and Service Tax (IGST)
These value added taxes are levied by the central government mainly on inter state supplies of goods and services. It is also imposed on imports of goods and services. The revenue generated all together is shared between the central and state governments based on predefined agreement.Â
4. Union Territory Goods and Services (UTGST)
As the name suggests, these taxes are levied in Union territories of india mainly on domestic goods and services. The total revenue generated is credited to the respective Union Territory Government of India.
What is the use of GST Calculator?
GST calculators are online tools which help calculate the total GST charge depending on the goods and services. These calculators are very helpful for business people who are involved in frequent selling and buying of goods.Â
Using these simple tools to calculate the net price of product depending on the total amount and GST rates on the product. It helps you find the accurate division of CGST, SGST, or IGST rates for a product.
List of 18 Percent GST Items in IndiaÂ
18 Percent GST items are mainly capital goods, industrial items, etc. Check the list of items which are covered under 19 percent GST in India in the table below.
| List of Products and Services under 18 Percent GSTÂ | |
| Goods | Services |
| Industrial essentials, such as transformers and electronics | Food supply and Party arrangements |
| Dental Wax, toothpaste, baby carriages, aluminium foil, etc. | Dining at restaurants including foods and drinks |
| Lithium ion batteries, powerbanks, etc. | Government job contracts |
| Television set top boxes, Television (upto 32 inches), headphones, etc. | Cinema, events, dramas, circus and other Entertainment activities |
| Furniture made from bamboo | Outdoor catering |
| Processed food items such as soups, icecreams, etc. | Air travel (business class) |
| Stationary items | Movie tickets above INR 100 |
| Hair oil, computer monitor (upto 17 inch), weight measuring devices, shampoos, etc. | Hotels, inns, guest houses accommodation between INR 1001 and INR 7500. |
Steps to Calculate GST using Online Calculators
There are many online calculators that can help you calculate GST rates and slabs for free. Check the steps below to calculate GST over items.Â
- First, you need to choose between GST inclusive or GST exclusive. GST inclusive is used when the GST amount is already included in the amount provided otherwise, choose GST exclusive.
- Now input the original amount of products or services.
- Select one of the applicable GST rates for the product or service. You can check bills for the Rates or check online for the GST on the given items or services.Â
- Click on the calculate button to find the GST amount for the given products.
Working of GST Online Calculators
These online GST calculators use simple mathematical formulas and logic to find the GST amount applicable for the goods and services. Any retailer or businessman can use these calculators to easily calculate GST charge. However, using this, we can save a lot of time.Â
1. For GST Excluded
Total GST amount = ( Total value of the goods and services x GST (%))/100
Total price to be charged = Total value of supply + Total GST amountÂ
2. For GST IncludedÂ
Total GST amount = ( Total value of the goods and services x GST (%))/100
Total price to be charged = Total value of supply + Total GST amount
18 Percent GST: Benefits of using GST Online Calculator
Check some major benefits of using online GST Calculators to calculate the final GST amount and the total price below.
- To calculate the GST amount, enter the input value, such as the original value, and the GST percentage. It is quick and reliable.
- It also helps to understand the GST structure by dividing it in CGST, SGST, IGST, and UTGST and their effect on the original amount price.
- It can help you calculate heavy amount within seconds and can be accessed from anywhere.Â
- You can use these online calculators to verify whether the GST amount charged is correct and consistent.
Learn Tally with PW Skills
Learn the basics of Tally with our Tally Prime Basic Course and start your shining career as an accountant, data entry operator, stock maintainer, and much more. If you are a beginner looking for a career in Tally then this course is the perfect fit for you. Learn important skills such as GST Calculation, basics of accounting, taxation, Tally auditing, and much more. Also, get access to the TEPL job portal and much more. Hurry and grab exciting offers on courses at @pwskills.com
Also Read: Stock Market Investing: Guide On How To Invest In Stock Market
Example of GST CalculationÂ
Let us understand the GST calculation with a simple basic GST example below.
| GST Calculation: 18 Percent GST | ||
| Particulars | Rate (%) | Amount |
| Total Invoice Value |
18%Â |
2,00,000 |
| GST Amount | 36,000 | |
| Final Price | 2,36,000 | |
18 Percent GST FAQs
What is GST?
GST or Goods and Services Tax, comes under value added tax charged indirectly on various domestic goods and services by the government of India.
What are the GST Rates on different products in India?
There are five major GST rates in India, 0%, 5%, 12%, 18% and 28%
What is 18 percent GST?
The 18 percent GST charge is levied on mid to heavy products and services such as transportation, air travel, accommodation, supply of food, dining, dental wax, power banks, and more. Just multiply the original value by 18 and divide by 100 to calculate the final amount with GST included.
Why is GST charged by the government?
GST is paid to the government to ensure the smooth import or flow of goods and services across every entire supply chain.
