What Is GST?
GST, or Goods and Services Tax, is an indirect tax system used in India on the supply of goods and services. GST replaced several earlier central and state indirect taxes and created a more unified framework for indirect taxation.
The GST system includes different components depending on the nature and location of a transaction. For a qualifying intra-state supply, GST is generally divided between Central GST (CGST) and State GST (SGST). For a qualifying inter-state supply, Integrated GST (IGST) generally applies.
How to Use the GST Calculator
Using the OneIndia GST Calculator is simple.
- Choose Add GST if you know the pre-GST price and want to calculate the final price after GST.
- Choose Remove GST if you have a GST-inclusive price and want to calculate the original taxable amount.
- Enter the amount.
- Select the applicable GST rate.
- Choose whether the transaction should be displayed as CGST + SGST or IGST.
GST Calculation Formula
When GST needs to be added to a price, the basic calculation is:
Final Price = Taxable Amount + GST Amount
For example, if the taxable amount is ₹10,000 and the GST rate is 18%:
GST = ₹1,800
Final Price = ₹10,000 + ₹1,800
Final Price = ₹11,800
How to Remove GST From an Inclusive Price
Sometimes the price you see already includes GST. In that situation, simply subtracting the GST percentage from the displayed price does not give the correct pre-GST value.
The GST-exclusive amount can instead be calculated by dividing the GST-inclusive amount by 1 plus the GST rate expressed as a decimal.
GST Amount = GST-Inclusive Price − Taxable Amount
For example, suppose an invoice price including 18% GST is ₹11,800.
Taxable Amount = ₹10,000
GST = ₹11,800 − ₹10,000
GST = ₹1,800
CGST and SGST Calculation
For a qualifying intra-state transaction, the total GST can generally be divided between CGST and SGST.
For example, if the total GST rate is 18%, the standard split is:
CGST = 9%
SGST = 9%
If the taxable amount is ₹10,000:
SGST = ₹10,000 × 9% = ₹900
Total GST = ₹1,800
IGST Calculation
IGST stands for Integrated Goods and Services Tax. It generally applies to qualifying inter-state supplies and certain other transactions covered by India's GST framework.
If the taxable amount is ₹10,000 and the applicable IGST rate is 18%:
IGST = ₹1,800
Total Invoice Value = ₹11,800
Common GST Rate Scenarios
Different goods and services can be subject to different GST rates. Common rate scenarios used for calculation include 0%, 5%, 12%, 18% and 28%.
The applicable rate should always be determined from the current GST classification and applicable government rules rather than simply assuming a standard rate.
| GST Rate | Taxable Amount | GST Amount | Final Amount |
|---|---|---|---|
| 5% | ₹10,000 | ₹500 | ₹10,500 |
| 12% | ₹10,000 | ₹1,200 | ₹11,200 |
| 18% | ₹10,000 | ₹1,800 | ₹11,800 |
| 28% | ₹10,000 | ₹2,800 | ₹12,800 |
GST-Inclusive vs GST-Exclusive Price
A GST-exclusive price is the taxable value before GST is added. A GST-inclusive price already contains GST.
This distinction is important when calculating invoices, comparing prices or determining the taxable value from a displayed consumer price.
For example, an item priced at ₹11,800 including 18% GST has a GST-exclusive value of ₹10,000 and GST of ₹1,800.
GST Calculator for Businesses
Businesses can use a GST calculator as a quick estimation tool when preparing quotations, comparing supplier prices or checking the mathematical GST component of a transaction.
However, an actual tax invoice may involve additional considerations, including the applicable classification, place of supply, taxable value, exemptions, discounts, reverse charge provisions, input tax credit and other GST rules.
GST Calculator for Consumers
Consumers can use a GST calculator to understand how much tax is included in a quoted or displayed price.
For example, if a product costs ₹10,000 before GST and the applicable rate is 18%, the final amount would be ₹11,800.
GST and Input Tax Credit
Input Tax Credit, commonly abbreviated as ITC, is an important part of the GST system for eligible registered businesses. Subject to the applicable rules and conditions, eligible businesses may claim credit for certain GST paid on business inputs against their output GST liability.
A basic GST calculator does not determine whether a particular input tax credit is legally available. Eligibility depends on the transaction and applicable GST provisions.
GST on Intra-State and Inter-State Transactions
The treatment of GST can differ depending on whether a supply is intra-state or inter-state.
- Qualifying intra-state supplies generally involve CGST and SGST or the corresponding state/union-territory component.
- Qualifying inter-state supplies generally involve IGST.
- The place of supply and nature of the transaction can affect the applicable treatment.
The tax type selector in this calculator is therefore useful for displaying a basic CGST + SGST or IGST breakdown, but it should not be treated as a legal determination of place of supply.
GST Calculation Examples
Example 1: Adding 18% GST
Suppose a service has a taxable value of ₹25,000 and the applicable GST rate is 18%.
GST = ₹4,500
Final Price = ₹25,000 + ₹4,500
Final Price = ₹29,500
Example 2: Removing 18% GST
Suppose the final price including 18% GST is ₹29,500.
Taxable Amount = ₹25,000
GST = ₹29,500 − ₹25,000
GST = ₹4,500
Example 3: 5% GST
For a taxable amount of ₹20,000 at 5% GST:
GST = ₹1,000
Final Amount = ₹21,000
Why Use a GST Calculator?
- Quickly calculate GST on an amount.
- Calculate GST-inclusive prices.
- Calculate GST-exclusive prices.
- Estimate CGST and SGST components.
- Calculate an IGST amount.
- Compare different GST-rate scenarios.
- Check the mathematical GST component of a quotation or invoice.
Important GST Calculation Considerations
A mathematical GST calculation is only one part of determining the correct tax treatment of a transaction.
Businesses may also need to consider the nature of supply, applicable GST classification, place of supply, exemptions, discounts, tax invoice requirements, registration status, reverse charge provisions and input tax credit rules.
GST rules and rates can change. Always verify the applicable rate and requirements against current official information before filing a return or issuing a tax invoice.