What is GST?

The GST Act was passed by the parliament on March 29, 2017 and implemented from July 1 of the same year. The Goods and Services Tax is an indirect tax levied by the Indian government on all goods and services purchased within its jurisdiction. It is a single tax that has eliminated multiple indirect taxes of the previous regime such as sales tax, VAT, Excise Duty, etc.

Every enterprise operating in India has to mandatorily register for the GST. They are required to have a GST Identification Number or GSTIN. Consumers have to pay this tax for all goods they purchase and all the services they avail. As such, it is paramount that one understands how to compute GST accurately. You may take the help of the GST calculator to evaluate the same.

How Can a GST Calculator Help You?

• GST tax calculator provides you with an accurate estimate of the amount of tax you have to pay.
• It helps you save time for the calculation of GST.
• It eliminates the chances of any fraudulent activities if you are an aware consumer who knows his/her taxes.

Formula to Determine GST Amount

For adding GST:
GST amount = Price × GST% / 100
Net price = Cost of the product + GST amount
Example: If a product costs ₹100 and GST is 18%, GST amount = 100 × 18% = ₹18. Net price = ₹118.

For removing GST:
GST amount = Inclusive price − [Inclusive price × 100 / (100 + GST%)]
Net price = Inclusive price × 100 / (100 + GST%)
Example: If the cost after GST of 18% is ₹118, original cost = 118 × 100 / 118 = ₹100.

What is GST Inclusive Amount?

GST inclusive amount means the total value of the product after including the GST amount in the original price. Herein, the tax is not charged separately from the customer since it is already included in the price.

What is GST Exclusive Amount?

GST Exclusive Amount means the value of the product without GST being included. To calculate this amount, the GST amount is subtracted from the product's GST inclusive value.

Advantages of using Groww GST calculator

• You can figure out the tax amount you are paying.
• It is quick and accurate, thereby saving you valuable time.
• You stay protected from any fraudulent activities that may arise out of wrong GST calculation.