Reverse GST Calculator - How to Calculate Reverse GST?

Reverse GST Calculator - How to Calculate Reverse GST?

Reverse Charge under GST (Goods and Services Tax) is one of the important topics. There are a number of goods and services which attracts the reverse charge.

According to the Section 9(4) of CGST Act, in case any registered taxpayer/person purchases goods/services from an unregistered dealer under GST, then the registered taxpayer has to pay GST on reverse charge. 

In general, the supplier of goods or services pays the tax, but in reverse charge, the liability to pay tax is on the recipient instead of the supplier of such goods or services as per the notified categories.

In today's world, one needs to know the quickest method to determine the reverse tax, to make the decisions quickly and complete the process easily. 

Day by day the count of GST taxpayers is increasing, in the year 2018 around 38 lakh new taxpayers have registered under GST regime and the total count crossed one crore by including the 64 lakh which were already registered with the previous taxation system. Therefore looking at the increasing amount of the taxpayer, it was necessary that there should be some beneficial factor for the taxpayers to complete the process easily.

GST calculator is one of the steps to simply hassle for the taxpayers, so in this article, let us understand how GST calculator helps us to calculate the GST reverse charge.

How to Calculate Reverse Charge under GST?

When a price inclusive the tax is mentioned, in such cases reverse tax is applied. Below mentioned is the formula to use while calculating reverse charge.

• GST Amount 

GST Inclusive Price - [GST Inclusive Price x {100/(100 + GST Rate Percentage)}]

• Original Cost 

GST Inclusive Price - GST Amount = [GST Inclusive Price x {100/(100 + GST Rate Percentage)}]

When is a reverse charge applicable

GST reverse charge is applicable in the following cases:

• The first case (Goods are supplied from unregistered to registered person)

In case any unregistered person supplies good to the registered person under GST, then the reverse charge will be applied. Which means that the person who receives goods should pay GST directly to the government.

• The second case (Services through any E-commerce operator)

When any of the E-commerce operators provide services then the reverse charge is applied. For eg - If any e-commerce operator provides the services such as outsourcing electricians, plumbers, etc on demand then the E-commerce operator has to pay the reverse tax.

• The third case (Listed goods and services by CBEC)

CBEC (Central Board of Excise and Custom) has listed some goods and services, under which reverse charge is applied.

4 Points to keep in mind for reverse GST charge

1. In case of Advance payment are subject to reverse tax.

2. There is no concept of partial reverse tax, it is necessary for a recipient has to pay 100\\\\\\% tax on the supply.

3. People obtaining goods or services notified under Sec 9(3) and Sec 9(4) should obtain GST registration.

4. GST levied under Reverse charge should be deposited to the government by 20th of every next month.

Make sure that the Online GST calculator you choose provides accurate information. It’s difficult to find? Do not worry, Online GST calculator by LegalDocs will help you to get the accurate result within a short span of time.