Finance January 17, 2024

How GST Is Calculated

Learn how Goods and Services Tax (GST) is calculated with practical examples.

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What is GST?

GST is a comprehensive tax levied on the supply of goods and services. It is calculated as a percentage of the value of goods or services.

Types of GST Calculation

GST Exclusive (Adding GST)

GST Amount = Base Price x (GST Rate / 100)
Total = Base Price + GST Amount

GST Inclusive (Removing GST)

GST Amount = Total Price - (Base Price x 100 / (100 + GST Rate))
Base Price = Total Price x 100 / (100 + GST Rate)

Example

Product price: 1,000
GST rate: 18%
GST Amount: 180
Total: 1,180