Formulas and practical examples for calculating GST in India
Calculating GST is a simple and quick operation that can be done in a few seconds. But not everyone knows how to add and subtract percentages for this. The mistakes made when calculating GST are always the same, although these are easy to avoid with the proper formulas.
It is essential to clarify certain points, to avoid preventable errors when calculating the total amount of a bill. These are the data you need to know to calculate GST accurately and simply.
How to calculate GST in India step by step (5%, 12%, 18%, 28%)
In some stores or web portals, you may find prices with the comment "GST not included". This means that it is not the final price, and that to that price you will have to add the cost of GST to obtain the total to pay.
Formula to calculate GST on a price without GST
To calculate GST in this case, the following formula must be used:
Practical example of calculating GST at 18%
That is, if you have a product whose value is ₹1,400 without GST and with a 18% of GST, the formula would be as follows:
The price of the item must be multiplied by the GST percentage, and that number divided by 100. In this case it would give ₹252. Then the amount of GST would be ₹252.
Another alternative would be to divide 18% by 100, giving 0.18 as a result, and this being multiplied by ₹1,400, resulting in ₹252 in the same way.
To finish, you must add the base price of the product, for example, ₹1,400, plus the calculated GST of ₹252, giving a final result of ₹1,652.
Example of reduced GST calculation (5%)
In the case of a product with a price of ₹1,400 without GST to which the reduced GST of 5% is applied, the formula allows you to calculate the corresponding tax on certain goods and services that have a lower taxation than the general rate.
How to remove GST from a price with GST included?
How to know the price without GST of a product
The opposite situation may also arise, where you want to remove the GST. This occurs when the price tag shows one, but with the comment that the GST is included. Knowing the net price of the product could be a totally valid question to have.
Formula to remove GST from a final price
This can be answered by applying the formula of:
Example to remove GST from 18%
In this case the ₹1,652 of the total product price would be divided by 1.18. Giving the following result:
In summary, if you have a GST of 18% these are the operations to perform:
- ₹1,400 × 0.18 = ₹252 (To calculate GST on prices that do not have it)
- ₹1,400 × 1.18 = ₹1,652 (To calculate the total price with GST included)
- ₹1,652 ÷ 1.18 = ₹1,400 (To calculate the price without GST)
GST Calculator in India: fast and accurate
While learning how to calculate GST is very helpful, when dealing with more complex figures and needing maximum confidence in the results, a GST calculator will be the most accurate option to use.
Use our GST calculator to get instant results and greatly simplify your calculations. You don't need to complicate yourself with mathematical operations when you can do them automatically with this calculator.
Common mistakes when calculating GST
Confusing price with GST included
Applying the percentage incorrectly
Not distinguishing types of GST
Frequently Asked Questions about the GST Calculator in India
What is GST and who pays it?
GST is an indirect tax that levies the consumption of goods and services and is paid by the final consumer when making a purchase. GST (Value Added Tax), also known as VAT or GST in other countries, is applied at each stage of the commercial chain. Companies collect it and declare it to the tax authority, but the final cost always falls on the consumer. The percentage and application rules depend on the legislation of each country.
How to use the GST calculator step by step?
To use a GST calculator you only need to enter the amount, select the percentage and choose whether the price includes GST or not. Once these data are entered, the calculator automatically shows the tax amount, the final price with GST and the price without GST. This process is valid for any country as long as the correct percentage is used.
Is the calculator reliable for large amounts?
Yes, a GST calculator is reliable for any amount, as it uses standard mathematical formulas. The accuracy does not depend on the amount entered, but on the percentage applied. For official tax operations or professional invoicing, it is recommended to verify the results with a specialized advisor.
Where to check the official GST rates?
Official rates and their updates should be consulted in the official sources of the government or tax entity of India; the calculator recommends verifying the rates on the official website when there are doubts.
Can I calculate the GST of other countries?
Yes, you can calculate the GST of any country by manually entering the corresponding percentage. This is useful for international purchases, e-commerce or price comparisons. It is important to note that each country may apply specific rules or taxes equivalent to GST.