GST Calculator for Wholesalers and Retailers

Here is a guide to help all wholesalers and retailers calculate GST on the digital calculator and upload it to the GSTN portal.
Business Loan
4 min read
25 May 2021

GST rules for wholesalers & retailers

In the current indirect tax regime, retailers and wholesalers could evade taxes as there is no mechanism by which actual transactions can be tracked. Hence, most transactions are done in black, where no invoice is issued to the buyer, and no entry is posted for such sales in their books.

With the new GST rules on the wholesale and retail industry, every invoice with taxable supply has to be uploaded on the GSTN portal. It needs to be accepted by the buyer, retailers and wholesalers, thereby reducing tax evasion.

GST calculation formula

Businesses, wholesalers and retailers can calculate their GST liability easily by using the below GST formula. Alternatively, with the help of a GST calculator, computation becomes even more manageable and quicker.

  • Where GST is excluded:
    GST amount = (value of supply * GST%)/100
    Price to be charged = value of supply + GST amount
  • Where GST is included in the value of supply:
    GST amount = value of supply – [value of supply x {100/(100+GST%)}]

How to calculate GST for wholesalers & retailers

“Manufacturers and wholesalers can calculate the GST applicable on goods and services along with the final or the gross price. Below is an illustration comparing the GST liability before and after GST is levied. This shows how the GST liability, and thus the end price is borne by the consumer, has been reduced.

Particulars

Rate (%)

Amount pre-GST

Amount under GST

Cost of the product

2,78,438

2,46,400

Profit

10%

27,844

24,640

Total

3,06,282

2,71,040

VAT (Rs. 306282 x 12.5%) – (credit on VAT paid above Rs. 30,938)

12.50%

7,347

Nil

CGST (Rs. 271040 x 6%) – (credit on CGST paid above Rs. 13,200)

6%

Nil

3,062

SGST (Rs. 271040 x 6%) – (credit on SGST paid above Rs. 13,200)

6%

Nil

3,062

Final invoice to the end-consumer

3,13,629

2,77,164


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