What is GST?
GST, or Goods and Services Tax, is an indirect tax charged on the supply of most goods and services in India. It replaced many earlier taxes, such as VAT, service tax and excise duty, with a single tax collected at every stage of the supply chain.
Within a state, GST is split equally into CGST (for the centre) and SGST (for the state). On sales between states, a single IGST is charged instead. The total rate is the same either way.
What is a GST Calculator?
A GST calculator works out the GST on an amount and the final price, for the tax slab you choose. It also works the other way: if a price already includes GST, it shows how much of it is tax.
Why you should use a GST Calculator?
- Quick pricing: Businesses can see the final price to charge, including GST, in seconds.
- Check your bills: Buyers can see how much of a bill is GST and confirm it was charged at the right rate.
- Fewer mistakes: Working backwards from a GST-inclusive price is easy to get wrong by hand.
How Does a GST Calculator Work?
Excluding GST (adding GST to a price)
GST = Amount × Rate ÷ 100; Post-GST Amount = Amount + GST
Including GST (finding the GST in a price)
GST = Amount − (Amount × 100 ÷ (100 + Rate))
The Pre-GST Amount is the amount minus the GST.
GST Calculation with an Example
Consider a price of ₹25,000 at a GST rate of 18%.
GST = 25,000 × 18 ÷ 100 = 4,500
Excluding GST, you add ₹4,500 for a final price of ₹29,500. If ₹25,000 already includes 18% GST, the price before tax is about ₹21,186.44 and the GST is about ₹3,813.56.
Things to keep in mind
- Check the rate: The GST rate depends on the exact goods or service and can change, so confirm the current rate before you bill or pay.
- Input tax credit: Registered businesses can usually claim credit for the GST they pay on purchases against the GST they collect on sales.