Arsh Thakur Beginner
How is GST Calculated?
Answer: The current GST rates in India are 5%, 12%, 18% and 28%. Businesses, wholesalers, manufacturers, and retailers can ascertain their GST amount by using the below formula:
GST Calculation
- Add GST:
GST Amount = (Original Cost x GST%)/100
Net Price = Original Cost + GST Amount - Remove GST:
GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}]
Net Price = Original Cost – GST Amount
To understand how this works, consider this example: A product is being sold at Rs. 400 and the GST rate on it is 18%. The gross amount of the product will be 400 + (400 x (18/100) = Rs. 472.
A number of tax calculators are available across different portals that can help you find out the GST. Some of the details that you will be required to input for calculating the GST return filing month, due date of filing return for the month, filing date, total tax liability during the month and purchases where the reverse charge mechanism is applicable.