GST Calculator

The Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. GST is a multi-tiered, destination-based tax that applies to all value-added taxes. It came into effect on July 1, 2017, replacing most of the country’s indirect taxes. GST categorizes goods and services into five tax slabs: 0%, 5%, 12%, 18% and 28%. Some products such as petroleum, alcoholic beverages and electricity are outside the GST system. Earlier, these items were taxed separately by individual states under the old tax system.

What is GST?

The Goods and Services Tax (GST) refers to an indirect tax levied on the supply of goods and services. Launched on July 1, 2017, GST created a unified tax system in India, replacing most of the existing indirect taxes. The central government introduced the GST law during the 2017 Budget Session, which was approved by Parliament on March 29, 2017. As a result, taxes such as Central Excise Duty, VAT, Entry Tax and Octroi were abolished.

What is a GST Calculator?

GST Calculator is a simple online tool that helps in calculating the GST payable for a month or quarter. It is useful for buyers, manufacturers, traders and distributors, making tax calculation quick and easy.

What is the GST Calculation Formula?

You can calculate GST using the following formulas:

To add GST to the original amount:

GST amount = (original price × GST%) ÷ 100
Net price = original price + GST ​​amount

To remove GST from the original amount:

GST amount = original price – (original price × (100 ÷ (100 + GST%))

Net price = original price – GST amount

How to use the GST calculator?

The steps to calculate GST using the GST calculator are as follows:

Step 1: Select GST inclusive or GST exclusive as per your requirement.

Step 2: Enter the initial amount.

Step 3: Select the applicable GST rate from the drop-down menu.

Step 4: Click on Calculate to get the result. The result will show both the GST amount and the pre-GST/post-GST amount depending on your selection.

GST is a tax on the sale of goods and services in India. It is a comprehensive tax levied on production, sale and consumption. Businesses, large or small, need to obtain a GST identification number to register under the GST system. For inter-state sales, Integrated GST (IGST) is levied, while intra-state transactions are subject to Central GST (CGST) and State GST (SGST).

How GST is Calculated?

With the unified tax system, taxpayers can now determine the tax levied at each stage for various goods and services. To calculate GST, they need to know the applicable rate, which falls under the 5%, 12%, 18% or 28% slab.

Example of GST calculation:

If a product is sold for Rs. 1,000 and the GST rate is 18%, the net price is:

Net price = 1,000 + (1,000 × 18 ÷ 100) = 1,000 + 180 = Rs. 1,180

GST Calculation Formula

To add GST to the original amount:

GST Amount = (Original Price × GST%) ÷ 100
Net Price = Original Price + GST ​​Amount

To remove GST from the original amount:
GST Amount = Original Price – (Original Price × (100 ÷ (100 + GST%))

Net Price = Original Price – GST Amount

GST Calculation Formula

The method of calculating GST varies depending on whether you apply inclusive or exclusive GST. This means whether you include GST in the price or add it to the original price of the product.

How Much is Inclusive GST?

When GST becomes part of the original price, it is called inclusive GST. Here, the final product price remains the same. However, the seller earns less than the original price because a portion goes to the government as GST.

Inclusive GST Calculation Formula:

GST Amount = Price × [GST Rate / (100 + GST ​​Rate)]

What is Exclusive GST Amount?

When GST is added to the original price, it is called exclusive GST. In this case, the price of the product increases after GST. The buyer pays a higher price, the seller keeps the original price, and the government receives the GST amount.

Typical GST calculation formula:
GST amount = original price × (applicable GST rate / 100)

Benefits of Using a GST Calculator

Reduces human errors

Allows you to calculate GST for multiple products

Helps you manage your tax liabilities efficiently

Shriram offers a simple and user-friendly GST calculator online

Conclusion

GST has made the administration of indirect taxes clearer and simpler. However, different GST types and different rates for different products make it challenging for many people to calculate GST for multiple transactions.

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