How to Calculate GST
GST (Goods and Services Tax) is an indirect tax levied on the supply of goods and services. Knowing how to calculate GST is essential for businesses and consumers.
GST Calculation Formula
GST Amount = Price × (GST Rate / 100)
Where:
- GST Amount = Tax amount to be paid
- Price = Original price before GST (or net price)
- GST Rate = Applicable GST rate (5%, 12%, 18%, or 28%)
Step-by-Step:
- 1
Identify the base price
Determine the price before GST.
- 2
Know your GST rate
Check the applicable GST slab for the product/service.
- 3
Calculate GST
Multiply base price by GST rate / 100.
- 4
Get final price
Add GST amount to base price for total.
Worked Examples:
18% GST on ₹1,000 item
Price: ₹1,000GST Rate: 18%
Result: GST = ₹180, Total = ₹1,180
GST = 1000 × 18/100 = ₹180