What is Goods and Services Tax (GST)?
Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based indirect tax
levied on the manufacture, sale, and consumption of goods and commercial services across
India and many international jurisdictions. By subsuming multiple earlier state and central
levies—such as Excise Duty, VAT, Service Tax, and Entry Tax—GST unifies national commerce
under a structured tax framework.
Depending on whether a trade is intra-state (within the same state) or inter-state (across
state borders), GST is bifurcated into:
- CGST (Central Goods and Services Tax): Collected by the Central
Government on intra-state transactions.
- SGST (State Goods and Services Tax): Collected by the State Government
on intra-state transactions.
- IGST (Integrated Goods and Services Tax): Levied on interstate trade
and imports, shared between central and state entities.
How to Use the Online GST Calculator
Our online calculation tool simplifies both inclusive and exclusive tax assessments in four
intuitive steps:
1
Choose Calculation Mode
Select whether you want to Add GST (exclusive) to
an item or Remove GST (inclusive) from a gross total.
2
Enter Base Amount
Input the financial figure in rupees representing either the net
manufacturing cost or retail billing price.
3
Select GST Slab Rate
Pick from standard tax slab presets (5%, 12%, 18%, 28%) or type a
custom percentage.
4
Review the Breakdown
Inspect exact net cost, total tax payable, and equal split between
CGST and SGST components instantly.
GST Calculation Formulas
Mathematical formulas used for calculating GST in inclusive and exclusive contexts:
Example Calculation Walkthrough
Suppose an IT consulting agency prepares an invoice of ₹50,000 subject to
standard 18% GST. Here is how both calculation methods resolve:
- Original Net Cost ₹50,000.00
- GST at 18% (₹50,000 × 0.18) ₹9,000.00
- CGST Portion (9%) ₹4,500.00
- SGST Portion (9%) ₹4,500.00
- Final Invoice Total ₹59,000.00
- Retail Inclusive Price ₹59,000.00
- Formula Applied ₹59,000 - [₹59,000 ÷ 1.18]
- Extracted GST Component ₹9,000.00
- Original Net Value ₹50,000.00
