Since the implementation of the Goods and Services Tax (GST) in India on July 1, 2017, calculating the final price of products has become a daily task for business owners and freelancers. Whether you are generating a bill or checking the MRP of a product, you need an accurate GST Calculator.
Table of Contents
1. What is GST?
GST (Goods and Services Tax) is a single indirect tax for the whole nation, which makes India one unified common market. It is levied on the supply of goods and services.
Depending on the transaction type, GST is divided into three components:
- CGST (Central GST): Collected by the Central Government on intra-state sales.
- SGST (State GST): Collected by the State Government on intra-state sales.
- IGST (Integrated GST): Collected by the Central Government on inter-state sales (one state to another).
2. Difference: Inclusive vs Exclusive GST
This is where most people make mistakes. Understanding the difference is crucial for correct billing.
A. Exclusive GST (Adding Tax)
This means the tax is NOT included in the price and needs to be added on top of it. This usually happens in B2B invoices.
Product Price = ₹1,000
GST Rate = 18%
Final Price = ₹1,000 + 18% = ₹1,180
B. Inclusive GST (Removing Tax)
This means the tax is ALREADY included in the final price (MRP). You need to do a "Reverse Calculation" to find the original base price.
MRP (Final Price) = ₹1,180
GST Rate = 18%
Original Price = ₹1,180 ÷ 1.18 = ₹1,000
3. How to Calculate GST Manually? (Formula)
If you don't have our calculator handy, here are the mathematical formulas:
To Add GST:
GST Amount = (Original Cost × GST% ) / 100Net Price = Original Cost + GST Amount
To Remove GST (Reverse GST):
Original Cost = Total Amount / (1 + (GST% / 100))
4. How to use our GST Calculator?
Why do manual math when our tool can do it instantly?
- Enter Amount: Type the price (e.g., ₹5,000).
- Select Rate: Choose the tax slab (5%, 12%, 18%, 28%).
- Choose Type: Select "Add GST" (Exclusive) or "Remove GST" (Inclusive).
The tool will instantly show you:
- Net Amount (Base Price)
- GST Amount (Tax Value)
- Total Amount (Final Bill)
5. Current GST Tax Slabs in India
| Rate | Examples of Items |
|---|---|
| 0% | Fresh milk, fruits, vegetables, bread, salt, newspapers. |
| 5% | Packaged food, tea, coffee, medicines, economy class air tickets. |
| 12% | Butter, cheese, mobiles, computers, processed food. |
| 18% | Capital goods, hair oil, toothpaste, soaps, industrial intermediaries. (Most common slab). |
| 28% | Luxury cars, ACs, refrigerators, cement, cigarettes. |