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How to Use a GST Calculator to Know Your Liability Value

When it comes to using a GST Calculator, you should certainly be aware of the process before venturing to calculate the liabilities. Calculating the GST which is payable when you are filing returns can be a challenging assignment in itself. Taxpayers should be aware of all aspects including non-eligible ITC (input tax credit), eligible ITC, inter-state sales, reverse charge and exempted supplies prior to the calculation of the GST amount that has to be paid. If a lower amount is paid by you, interest at the rate of 18% on the remainder will have to be paid.

This makes it necessary to calculate the right GST amount which is payable. The liability will be worked out by the addition of the GST on output supplies, reverse charge and inward supplies. The opening balance of the electronic credit ledger and electronic cash ledger will be taken into account when working out the GST liability for a single month. Liability is automatically calculated when GST returns are filed each month. However, liability calculations may be required by the taxpayer beforehand in order to keep money aside for liability.

This is where a GST Calculator comes in very handy indeed. In this calculator, you will have to enter in the month for which you are doing calculations, the due date for filing returns for the month, actual return filing date, purchases on which reverse charge mechanism applies, total tax liability for the month, opening cash ledger balance, eligible ITC (GSTR-2) and the opening balance of your credit ledger. The other sections will be automatically worked out on the basis of your entries.

The GST Calculator also helps in calculating the output tax liability. This can be worked out by multiplying the GST rate with the total value of advances and supplies. Suppose Rs.20 lakh is the total value of interstate sales with Rs.10 lakh being the total value of intrastate sales. Suppose the interstate advanced garnered by you is Rs.5 lakh. IGST in this case will be 20 lakh * 18% = 3,60, 000 + 5 lakh * 18% =Rs.90,000, i.e. the total IGST will be Rs.4,50, 000/-

On the other hand, CGST and SGST will be 10 lakh *9 % = Rs. 90,000 each. These values have to be keyed in the columns provided. GSTR-3B also offers adequate information in this regard. Also, taxpayers who have company turnover up to Rs.1.5 crore will not be required to pay GST on advances arising from supply of goods. GST on these supplies will only be paid when those goods are supplied.

The opening balances of the electronic credit ledger and electronic cash ledger can be found via the GST portal. Upon keying in all these numbers, there will be automatic calculation of GST liability. In addition to GST liability, late fees if applicable and interest will also be worked out accordingly.

Also Read : All you need to know about GST


He is an advisor with an experience of more than 7 years. He has worked for topmost firms in India and has been a visiting faculty at many reputed institutes in India. Currently based in Pune, He is a name to reckon with when it comes to financial management for big brands. A post-graduate in business economics, he is an alumni of Princeton University, USA. During his free time, Arwind teaches children from marginalised sections of society and also work on his blog. Tech Brief Stuff

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