GST Calculator: A Quick Guide

A GST (Goods and Services Tax) Calculator is a handy tool for calculating the total amount payable for goods or services under India’s GST system, which includes different tax rates depending on the product or service.

How It Works:

1. Enter the Original Amount: Input the base price of the product or service (before GST).
2. Select GST Rate: Choose the applicable GST rate (e.g., 5%, 12%, 18%, or 28%). Different products/services fall under different GST slabs.
3. Calculate: The calculator will show the GST amount and the final price after adding GST to the original amount.

Two Types of GST Calculations:

1. Add GST: When you want to find the price after applying GST.
   • Formula: Final Price = Original Amount + (Original Amount * GST% / 100)
   • Example: If the product price is INR 1,000 and GST is 18%, the final price will be INR 1,000 + 180 = INR 1,180.
2. Remove GST: When you want to find the price excluding GST from a total amount.
   • Formula: Base Price = Final Amount / (1 + GST% / 100)
   • Example: If the total price with GST is INR 1,180 and GST is 18%, the base price will be INR 1,180 / 1.18 = INR 1,000.

Benefits:

• Quick Calculations: Easily figure out how much GST you’ll pay or need to collect.
• Accuracy: Ensures you comply with GST rules when invoicing or paying for goods and services.
• Business Use: Essential for businesses to calculate GST payable or receivable on sales and purchases.

A GST calculator simplifies tax compliance and helps individuals and businesses plan better for their expenses or revenues.