Reverse GST Calculator

Use this calculator to determine the GST amount and the net amount (excluding GST) based on the total including GST and the GST rate.

What is GST?

GST (Goods and Services Tax) is a comprehensive, multi-stage, destination-based tax levied on every value addition. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer. The credits of input taxes paid at each stage are available in the subsequent stage of value addition, making GST essentially a tax only on value addition at each stage.

Key Components of GST

  • CGST (Central Goods and Services Tax): Levied by the Central Government on intra-state supply of goods and services.
  • SGST (State Goods and Services Tax): Levied by State Governments on intra-state supply of goods and services.
  • IGST (Integrated Goods and Services Tax): Levied by the Central Government on inter-state supply of goods and services.

GST Rates

GST is categorized into four main tax slabs:

  • 0%: Essential items like food grains, vegetables, etc.
  • 5%: Essential and mass consumption items.
  • 12% and 18%: Standard rates for most goods and services.
  • 28%: Luxury items and sin goods.

Registration

You need to register under GST if:

  • Your annual turnover exceeds ₹40 lakhs (₹20 lakhs for some special category states).
  • You make inter-state supply of goods or services.
  • You are involved in e-commerce.
  • You are a non-resident taxable person, agent, or input service distributor.

Input Tax Credit (ITC)

ITC allows you to reduce the tax you have paid on inputs from your output tax liability. To claim ITC, you must ensure:

  • You have a tax invoice or debit note.
  • You have received the goods/services.
  • Tax is paid to the government.
  • You have filed your GST returns.

Filing GST Returns

There are several types of returns under GST, and the frequency of filing depends on the type of taxpayer:

  • GSTR-1: Monthly return for outward supplies.
  • GSTR-3B: Monthly summary return.
  • GSTR-4: Quarterly return for composition scheme taxpayers.
  • GSTR-9: Annual return.

Composition Scheme

Small businesses with an annual turnover up to ₹1.5 crore can opt for the Composition Scheme. Under this scheme:

  • Pay a fixed rate of tax on turnover.
  • File quarterly returns.
  • Cannot claim ITC.

Compliance

To comply with GST regulations:

  • Maintain proper records: Keep detailed records of all transactions, invoices, and returns.
  • Timely payments: Ensure timely payment of GST to avoid interest and penalties.
  • Regular updates: Keep track of updates and notifications from the GST Council and the Central Board of Indirect Taxes and Customs (CBIC).

Getting Help

Resources for assistance:

  • GST Portal: Official website for registration, return filing, and resources.
  • Professional Help: Consult tax professionals or CAs for compliance.
  • Government Resources: Use resources provided by CBIC and other government bodies.

Reverse GST Calculator

Reverse Charge Mechanism (RCM)

Under the Reverse Charge Mechanism, the liability to pay tax is on the recipient of goods or services instead of the supplier. This is applicable in specific situations such as certain types of supplies and imports of goods/services.

When does RCM apply?

  1. Notified goods and services: Certain goods and services are notified by the government under RCM.
  2. Supply by an unregistered person to a registered person: If a registered business purchases goods or services from an unregistered supplier.
  3. Import of services: When you receive services from a supplier located outside India.
  4. Specified categories of supplies: Certain categories like services provided by a goods transport agency, advocates, etc.

Calculating GST under RCM

  1. Determine the GST rate applicable: Based on the type of goods or services received.
  2. Calculate the GST amount: Based on the value of goods or services.
  3. Pay the GST: The recipient pays the GST directly to the government.

Example Calculations

Example 1: Purchase of Goods from an Unregistered Supplier

  • Type of supply: Goods
  • GST rate: 18%
  • Value of goods: ₹1,00,000

Calculation:

  • GST under RCM = 18% of ₹1,00,000 = ₹18,000
  • You pay ₹18,000 directly to the government.

Example 2: Import of Services

  • Type of supply: Services
  • GST rate: 12%
  • Value of services: ₹50,000

Calculation:

  • GST under RCM = 12% of ₹50,000 = ₹6,000
  • You pay ₹6,000 directly to the government.

Example 3: Services Provided by a Goods Transport Agency (GTA)

  • Type of supply: Services
  • GST rate: 5%
  • Value of services: ₹20,000

Calculation:

  • GST under RCM = 5% of ₹20,000 = ₹1,000
  • You pay ₹1,000 directly to the government.

Compliance under RCM

  1. Invoice: The recipient must issue an invoice for the goods/services received under RCM.
  2. Payment Voucher: Issue a payment voucher at the time of making the payment.
  3. GST Returns: Report the RCM transactions in GSTR-3B and GSTR-1 returns.

Example Calculation with Multiple GST Slabs

Let's assume you received various goods/services under RCM:

  1. Goods at 5% GST

    • Value: ₹40,000
    • GST: 5% of ₹40,000 = ₹2,000

  2. Services at 12% GST

    • Value: ₹30,000
    • GST: 12% of ₹30,000 = ₹3,600

Total GST under RCM: ₹2,000 (goods) + ₹3,600 (services) = ₹5,600

You pay ₹5,600 directly to the government.

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