Tax

GST Calculator: Complete Guide to GST Calculation for Businesses

What is GST?


GST (Goods and Services Tax) is an indirect tax on the supply of goods and services. It has simplified taxation by replacing multiple taxes with a single unified tax system.


How to Calculate GST


Adding GST (Exclusive):

GST Amount = Original Price x GST Rate / 100

Final Price = Original Price + GST Amount


Removing GST (Inclusive):

Original Price = GST-Inclusive Price / (1 + GST Rate/100)

GST Amount = Inclusive Price - Original Price


GST Rate Structure


  • 0%: Essential items (fresh food, healthcare)
  • 5%: Common use items (packaged food, transport)
  • 12%: Standard goods (processed food, mobiles)
  • 18%: Most services (restaurants, IT services)
  • 28%: Luxury goods (cars, tobacco)

    • Input Tax Credit (ITC)


    Businesses can claim credit for GST paid on purchases against GST collected on sales, effectively paying tax only on the value added at each stage.


    Filing Requirements


    Regular businesses must file monthly/quarterly returns showing:

  • Outward supplies (sales)
  • Inward supplies (purchases)
  • Tax collected and paid
  • ITC claimed

    • Calculate GST Instantly


    Use our free GST calculator to add or remove GST from any amount.

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