GST is the national level tax that has replaced VAT (Value Added Tax) and is being implemented country-wide. This tax is levied on sales, consumption of goods and services and manufacturing. All the other indirect taxes have been replaced by GST at both central and State levels. The introduction of the GST is considered as the biggest tax reform of the country. This is a major improvement in the tax structure of the country. The GST calculator is immensely helpful for business owners in the current scenario.

How is the GST calculated?

The conventional form of taxation may have been erroneous. Taxes had to be paid on both ends - the Factory Gate tax levied at the start of production and the VAT that was to be paid on consumption. The two taxes increased the total price and made calculations difficult. The GST calculator can now help calculate the exact percentage.

There were confusions at the beginning of the implementation of GST. Certain commodities are not taxed while there are slabs for the others. The lowest rate is 5% and the other slabs are 12%, 18% and 28%. The items that are deemed basic necessities are now cheaper, particularly food items.

However, most branded goods have become more expensive along with fine dining and accommodation in five-star hotels.

• 5% taxes are levied on items like biogas, insulin, revenue stamps, hearing aids, footwear and paneer.

• 12% taxes are meant for stuff like diagnostic kits, notebooks, glasses, diesel engines and the walkie-talkies used by defence personnel.

• 18% taxes are imposed on items like mayonnaise, school bags and concrete pipes.

• 28% taxes are charged on alcohol, cigarettes, chocolate without cocoa, aerated water and other products

​Also Read: What is the GST, and How is it Calculated?