As a trader/ service provider, you must factor in all the prospects, including exempted supplies, ineligible and eligible ITC, and inter-state sales. The key benefit of calculating the GST rates correctly is that you can easily avoid the 18% interest rate you will have to pay in case you pay less than what you are supposed to.
You can also use the GST rates calculator online to know your estimate simply. You can calculate the amount under different categories such as current ledger balance, return filing month, tax liability and more. It is best to be aware of the numbers and submit the GST on time so you can avoid any legal action. Since the GST has come into action, numerous businesses have garnered numerous benefits and have avoid financial losses.
Here’s the GST rates calculation formula-
Goods and Services Tax amount = (Original price x Current GST rate) / 100
Determine the net price= GST amount + Original price of product/ service
Suppose a product or a service costs Rs. 800, and the GST applicable is 12%, then you net price of product will be 800+(800 X (12/100)) = 896.
Using this formula, you can find out the GST tax rates easily.