GST Calculator

You can easily use the GST calculator online by following the steps mentioned below:

- Enter the net price of a service or good and the GST slabs such as 5%, 12%, 18% and 28% into the tool.

- Click on the ‘Calculate’ button and get to know the final or gross price of goods and services.

GST calculation formula:

Businesses, manufacturers, wholesalers and retailers can easily calculate GST using this formula:

Simple 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

Here’s an example to illustrate this:

	Rate (%)	Amount
Original cost of goods		Rs.1,00,000
GST	18%	Rs.18,000
Cost of goods sold		Rs.1,18,000

GST calculation for manufacturers:

	Rate (%)	Pre- GST	Post- GST
Cost of product		10000	10000
Excise duty	12%	1200	Nil
Profit	10%	1000	1000
TOTAL		12200	11000
VAT	12.50%	1525	Nil
CGST	6%	Nil	660
SGST	6%	Nil	660
Final invoice to the wholesaler		13725	12320

At a cost point of Rs.10,000, the manufacturer is saving Rs.1405 i.e. a 14% tax saving on the cost. This brings a cost reduction for manufacturers, the benefit of which is ultimately passed on to the wholesalers, retailers and consumers.

GST calculation for wholesalers and retailers:

	Rate (%)	Pre- GST	Post- GST
Cost of product		13725	12320
Profit	10%	1373	1232
TOTAL		15098	13552
VAT	12.50%	1887	Nil
CGST	6%	Nil	813
SGST	6%	Nil	813
Final invoice to the consumer		16985	15178

GST brings down the cost of the product and thus, the consumer pays a lesser price for the goods at the same profit% earned by wholesalers and retailers.

What is GST?

Goods and Service Tax (GST) is an indirect tax that manufacturers, wholesalers, retailers and consumers have to pay on consumer goods and services. It is a destination-based and multi-stage tax which is charged on every value addition. Passed in the Indian Parliament on 29th March 2017, the act came into effect from July 1, 2017. Replacing all indirect taxes like central excise duty, service tax, customs duty, VAT, Octroi and surcharges, the implementation of GST has simplified the taxation processes for businesses.

What are the benefits of using a GST calculator?

The online GST calculator help you to find out either gross or net product price on percentage-based GST rates. It saves time and reduces chances of human error while computing the total cost of goods and services.