Calculation of GST

Calculation of GST

GST Tax Calculation Formula

All one needs to do is input the net amount of a good or service and the applicable GST rate (5%, 12%, 18% or 28%) into the tool. Click on the ‘Calculate’ button and instantly get the gross price of the good or service. GST calculation is represented by the below example:

A goods or service is sold at the rate of Rs.500. GST rate is 18%. Gross amount of the goods or service = 500 + [500 x (18/100)] = Rs.590

Formula for GST calculation:

  • Add GST:

GST Amount = (Original Cost x GST%)/100

Net Price = Original Cost + GST Amount

  • Remove GST:

GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}]

Net Price = Original Cost – GST Amount


What impact GST has on the pricing of products as compared to the previous scenario?

In the above illustration, you can take note of that the expense paid discounted inside state can be guarantee against assess paid marked down outside the state in GST framework, which is not in introduce charge framework.

The credit of CGST can’t be assumed against SGST and acknowledgement of SGST can’t be taken against CGST yet the two credits can be taken against IGST.

GST Software for Business, CA & Enterprises

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