Digitalization has had an immense impact on transactions, with online tools like GST, EMI and other calculators being introduced by financial institutions.
While the primary motive of these introductions has been to make it simpler for individuals to calculate their dues and liabilities, they serve other purposes too.
Especially in the case of GST, which was introduced in 2017 and recorded more than Rs.95 lakh in revenue generation in the second quarter of 2019, there has been widespread confusion regarding its functioning.
This issue is somewhat solved with these online tools helping concerned individuals in calculating various financial aspects within minutes.
EMI and GST calculators do not merely provide an accurate estimation of finances, these also do so promptly.
Furthermore, along with saving time for its users, these calculators are readily available and quite convenient to use too.
Several portals offer such calculators online, though it is best advised to use the official government website or that of an established financial institution for accurate calculations.
Following these steps explained below can make it even more convenient for interested individuals to calculate their due GST payments.
- After accessing the official portal of this tool, individuals must first enter their transactional entity. This can be that of a buyer, a manufacturer, or a retailer/wholesaler. This is an essential criterion since GST varies for each different type.
- Applicable net price of the concerned product must be entered in this online calculator too.
- Individuals using this device should check their applicable GST rate. While this is usually 18%, this percentage can vary over various types of transactions and the size of a company.
- After entering all these vital information in a GST calculator for wholesalers, retailers, manufacturers, buyers, and others, these following data are displayed –
- Gross price of this product under consideration.
- CGST amount to be paid by this concerned individual.
- IGST amount that must be cleared by this concerned entrepreneur or buyer.
- Total tax paid by this individual
GST Calculators use this following Formula to Calculate these above-mentioned Data
GST amount = (original cost X percentage of GST)/100
After calculating this GST amount, it is either added or subtracted from the net price. This depends on a transactional entity like that of a buyer or seller.
EMI or term loan calculators can be used to plan a credit repayment properly by adjusting the tenor, principal, and rate of interest according to a borrower’s convenience.
These calculators are based on this formula below:
E = [P X R X (1 + R)^N]/[(1 + R)^(N – 1)]
- E = EMI,
- P = principal,
- R = rate of interest,
- N = number of years.
Potential borrowers of business loans can follow these steps explained below to compute their term loan repayments and EMI amounts before applying.
- Borrowers should access the online calculator offered by their financial institution of choice to calculate their repayment details.
- Unlike in the case of GST Calculator, individuals using a loan calculator must decide on their loan amount and choice of the tenor. Furthermore, they should also check their available rate of interest.
- Once these three above mentioned data is entered in an online digital calculator, it displays total repayment and interest amount along with the individual EMIs.
- In case a borrower feels that his/her EMI amount is too high or too less, he/she can readjust the repayment tenor accordingly and check the new EMIs. Borrowers must note, though, in such circumstances, their applicable rate of interest will be constant.
Once a potential borrower has decided on their loan amount and tenor using a term loan calculator, he/she should arrange every necessary document too.
These application processes themselves are quite easy with various financial institutions providing pre-approved offers.
NBFCs like Bajaj Finserv bring pre-approved offers, which make loan applications easy and less time-consuming.
Such offers are provided on numerous financial products like business loans, personal loans, etc. You can easily check your pre-approved offer by providing personal details like name and phone number.
Business owners borrowing loans should also note that there are specific clauses in the Income Tax Act of India, which offer them exemptions on lines of credits. Not to be confused with GST Calculator, there are other online calculators that can be used to calculate these exemptions and benefits.
Additionally, along with using these online tools, borrowers should also note the various tax-saving tips for small business owners. These can be significantly helpful in reducing the overall financial burden of an entrepreneur, thereby also positively impacting their revenue generation.