How to Use the GST Calculator for Business Loan Management?
21 March, 2025
Synopsis
Whether you are a customer, manufacturer, wholesaler or retailer, you must pay GST.
You can use the GST calculator to simplify tax calculations.
Understanding the GST amount and its components can help ensure tax compliance.
As a business owner, you have many responsibilities. It's important to manage each of them carefully to run your business smoothly. Two such typical responsibilities are finance management and tax compliance.
If you have taken a Business Loan, make sure you manage it properly. This is important to avoid default payments, which could lead to financial problems. From a regulatory perspective, tax compliance is necessary. It presents you as a committed taxpayer and protects you from potential tax issues.
Goods and Services Tax (GST) is a standard tax all businesses must pay. Manually calculating GST is time-consuming and vulnerable to human errors. The GST calculator has been introduced to simplify calculations.
This blog will explain how to use the GST calculator for business for Loan management:
Understanding GST
The goods and service tax (GST) is a tax applicable across the country. The Indian Government introduced it in 2017, aiming to eliminate multiple indirect taxes imposed by various governments.
The introduction of GST established a uniform indirect tax structure across India. This includes the following four components:
CGST: Central Goods and Services Tax. It applies to intra-state transactions. The central government collects it.
SGST: State Goods and Services Tax. It applies to the intra-state supply of goods and services. Each state is responsible for collecting it in their geographies.
IGST: Integrated Goods and Services Tax. It applies to interstate import and export. The central government administers and collects it.
UTGST: Union Territory Goods and Services Tax. It applies to sales within the UT. The UT authorities collect it.
What is a GST Calculator?
Calculating each of the GST components is challenging. The GST calculator for business proves to be a valuable tool in this situation. It calculates the total GST and the total price of a product/service within seconds. It also offers a breakdown of each GST component, which provides clarity on the taxation.
How to Use the GST Calculator?
You can find a GST calculator online, and it is very easy to use. The general steps include the following:
First, select the type of user – Customer/Manufacturer/Wholesaler/ Retailer
If you are a buyer, enter the following data in the calculator:
Net price of the product/service
GST Percentage
If you are a manufacturer/wholesaler/ retailer, input the following data in the tool:
Production cost
Profit ratio percentage
GST percentage
On entering the above-mentioned data, the GST calculator will provide results as follows:
Total price
Total tax (IGST Amount)
CGST Amount
SGST/ UTGST Amount
How to Use the GST Calculator for Business Loan Management?
A GST calculator for business loan management can help you understand the impact of GST on your loan repayments, as well as your business’s overall tax liabilities. Here are some GST financial planning tips for Business Loan management:
Understand GST Applicability:
The first step is to check if GST applies to your business loan, as GST is typically applicable to loans or financial products related to services. For instance, interest on a business loan may be subject to GST, and the calculation of the loan EMI or processing fees could include GST.
Input Loan Details
Enter your loan amount, interest rate, tenure and any additional charges like processing fees into the calculator. The calculator will provide an accurate estimation of the EMI amount, including GST, if applicable.
Include GST Components
If your loan has charges like processing fees or interest that are subject to GST, make sure to factor in those percentages. The GST calculator cam help calculate the tax amount to be added to these charges.
Calculate Your Tax Liabilities
The GST calculator can also assist in figuring out how much GST you will need to pay on the processing fee or other service charges related to the loan. This ensures that you’re aware of any additional tax burden.
Plan Repayments with Tax Consideration
Once you have the final loan amount (including GST), you can adjust your repayment schedule accordingly.
Track GST Claims for Businesses
If you’re registered under GST and the loan interest or related expenses are used for business purposes, you may be able to claim tax credit on the GST paid. The calculator can help in assessing this and determining potential savings.
GST is an indirect tax applicable to all goods and services. Whether you are a customer, manufacturer, wholesaler, or retailer, you must pay it. Manually calculating GST is difficult. The GST calculator is an online tool which simplifies tax calculations for you. It breaks down the total price and applicable taxes. This gives you a better understanding of what you are paying for.
Additionally, it helps with Business Loan management. Use the calculator tactfully for Loan amount allocation, optimisation, and repayment planning.
Access a hassle-free Business Loan management with HDFC Bank. Apply now.
FAQs
What is a GST calculator, and how can it help businesses?
The GST calculator helps you calculate the GST applicable to a product/ service. It helps businesses understand the GST amount and manage their Business Loan.
Does GST impact Business Loan repayments or interest calculations?
Using the GST calculator helps you plan your Business Loan repayment effectively. It does this by providing a better understanding of the cash remaining after tax deductions. You can then accordingly plan your obligations and expenses.
What are the benefits of using a GST calculator for simplifying tax calculations?
The GST calculator is an easy-to-use online tool. It provides accurate results of the total price and taxes. Visit any leading banking and financial website/ app to access it free of charge.
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Business Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
