With the implementation of GST in India, businesses have changed the way they bill their customers. For calculating tax under the GST regime, you will have to understand the tax slabs for goods or services in India. Five different tax slabs have been formed by the GST council in India. These are zero per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent. These are applicable for both goods and services.

Knowing how to calculate GST is very important, especially if you are a business owner. It can also be useful for other people in their day to day life. Students need to learn how to calculate GST at primary and high school levels and even at university level if studying business or accounting. Many business owners prefer using some online GST calculator for calculating GST. While you can always use an online GST calculator to calculate GST for your goods and services, learning a few things about GST calculation may help you in the long run. This article shows you how you can calculate GST. Here are the things you are going to need to calculate GST:

1. Period of time (months) for which GST calculation needs to be done
2. Due date of filing return for the month
3. The actual date of filing the return
4. Your total tax liability during the month
5. Your purchases attracting Reverse Charge Mechanism
6. Input Tax Credit (ITC)

Let us now look at the steps we need to take to calculate GST:

1. Find the applicable GST rate for the Goods or Service

The initial step in the process of GST calculations to find GST rate applicable for the Goods or Services.

2. Figure out the type of GST applicable

Having determined the GST rate, you will need to figure out which GST type will be applicable to the Goods or Services. The types of GST are IGST, CGST and SGST.

3. Find out whether the GST is chargeable on Reverse Charge Basis

Usually, under GST, the supplier of the Goods or Services collects tax from the recipient and remits them with the Government. However, for reverse charge services, the recipient has to pay the GST. Therefore, it is important to understand if the transaction includes reverse charge under GST.

4. Find out whether the supplier is enrolled under GST Composition Scheme

Usually, to be GST compliant the supplier has to maintain extensive accounts, records and file 3 GST filing a month. However, many small and medium-sized businesses in India find GST compliance tough and look for a simpler method. Businesses with a turnover of less than Rs.75 lakhs have the option to enroll under the GST Composition Scheme. They can then simply pay a flat GST based on their gross turnover. Suppliers who are enrolled under GST composition scheme mention on their invoice that they are composition Suppliers and are not eligible to collect taxes. This makes it really important to know whether the supplier is enrolled under GST Composition Scheme or not.

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Planning for a mutual fund investment may seem difficult in the beginning. However, when you consider some specific parameters, you will be successful in investing in a worthwhile investment scheme. Mutual fund is one of the most effective sources to create wealth in the long run. It is that wealth creating source that will help you fulfill your many small and big goals in life. Whether your goal is to get a bike under 1 lakh in India or to get settled in the US, it is through financial planning that everything falls into the right place. Therefore, you must take due care in choosing the best mutual funds that can help you grow your wealth over time.

Most people find it difficult to choose the right investment plan and therefore end up taking an unsatisfactory decision. Hence, it is essential to do an in-depth market research and analyse the various parameters before investing. However, before you start your research, it is important to know the different factors that need to be studied and analysed. Here are some of the factors you must carefully examine before taking an investment decision in mutual funds:

1.  Recognize Your Goals

Investment goals can be either long-term or short-term in nature. The first step to be taken is to understand the goal of investment. Understanding your goal for investment can help you determine the most suitable investment strategy. Your goal could be to support your children’s future education or to get a bike under 1 lakh in India. In any case, you being clear about your goals is a big advantage. When you are aware of your goals, you can take the right decision at the right time which can bring you higher returns in the future. According to your set goals, you can choose the best mutual funds for you which either fall under the equity, debt or hybrid funds category.

2. Evaluate the AMCs

After setting up your investment goals, you need to evaluate the asset management companies or AMCs. AMCs are the companies which provide you top-performing mutual fund schemes. When you invest your money in mutual funds, you give these companies approval to manage your money and invest them in the most efficient plans. Before you hand over your money to an AMC, make sure to have a clear understanding of it.

3. Take a look at the Fund’s performance record

Having some idea of the scheme isn’t enough to invest your money in it. You must figure out if the scheme has the capacity to deliver the desirable returns. The past performance of the fund scheme may not confirm the future returns of a scheme. However, it gives you a fair idea about the capability of the scheme for offering higher returns. Basically, analysing the track record of a scheme makes you more confident about investing your money in them. If you have already invested in mutual funds, you can use a mutual fund SIP calculator to estimate the returns on your investment. A mutual fund SIP calculator not just helps you calculate your expected SIP fund returns, it also serves as a tool for you to compare different mutual fund schemes.

4. Analyze the diversification of the fund

Investing your money into divergent schemes reduces the risk exposure. When choosing mutual fund schemes, make sure that the funds offer diversification of your capital. Investing in such mutual funds can bring enough returns for a financially strong future.

5. Be a consistent investor

To earn better returns from the best mutual funds, you have to be consistent in your investments. The Systematic Investment Plan (SIP) is the most suitable scheme for this purpose as it gives you a convenient method to be a regular investor.

We hope you found this post useful and informative. If you have any queries or suggestions related to this post, please drop your comments in the comment section below.  We would be glad to help you out. To show your support, share this post with your friends on Social media and elsewhere.

Thank you very much for reading!