How to calculate GST in India step by step (5%, 18%, 40%)
This guide explains how to add GST manually and how to verify the result using the calculator.
In some stores or web portals you may see prices with the comment "GST not included". This means that it is not the final price, and that GST will have to be added to that amount 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 ₹900 without GST and with a 18% GST, the formula would look like this:
The price of the item must be multiplied by the GST percentage, and that number divided by 100. In this case it would give ₹162. Then the GST amount would be ₹162.
Another alternative would be to divide 18% by 100, giving 0.18 as a result and this being multiplied by ₹900, resulting in ₹162 in the same way.
To finish, you must add GST to a price by adding the base price of the product, for example, ₹900, plus the calculated GST of ₹162, giving as a final result ₹1,062.
Example of reduced GST calculation (5%)
In the case of a product with a price of ₹900 without GST to which the reduced GST of 5% is applied, the formula allows you to calculate the corresponding tax for certain goods and services that have a lower taxation than the general rate.