Understanding GST Calculations
The Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services. Whether you are generating an invoice for a client or figuring out the base price of a retail product, our GST Calculator makes the mathematical conversions instantaneous and error-free.
If you are tracking profits and financial growth from your business sales, you may also find our SIP Calculator helpful for long-term wealth planning.
How to Calculate GST
The math differs depending on whether you are adding the tax to a base amount, or extracting the tax from a total amount.
-
Adding GST (Exclusive to Inclusive)
GST Amount = (Net Price × GST%) / 100
Gross Price = Net Price + GST Amount -
Removing GST (Inclusive to Exclusive)
Net Price = Gross Price / (1 + (GST% / 100))
GST Amount = Gross Price - Net Price
CGST vs. SGST vs. IGST
In countries with a dual GST structure (like India), the tax revenue is split between the Central and State governments depending on the nature of the transaction:
- Intra-State (Within the same state): The total GST is divided equally. 50% goes to the Central Government (CGST) and 50% goes to the State Government (SGST).
- Inter-State (Between two states): The total GST is collected as a single Integrated GST (IGST) by the Central Government.
For more details on the tax slabs and economic structure, you can read about the Goods and Services Tax on Wikipedia.