Gross price
CGST Amount
IGST Amount
Total Tax
Total Production cost
CGST Amount
IGST Amount
Total Tax
Total Production cost
CGST Amount
IGST Amount
Total Tax
Goods and Service Tax (GST) is an indirect tax that manufacturers, wholesalers, retailers and consumers have to pay on consumer goods and services. It is a destination-based and multi-stage tax which is charged on every value addition. Passed in the Indian Parliament on 29th March 2017, the act came into effect from July 1, 2017. Replacing all indirect taxes like central excise duty, service tax, customs duty, VAT, Octroi and surcharges, the implementation of GST has simplified the taxation processes for businesses.
The GST calculator assists you find out either gross or net product price on percentage-based GST rates. The GST calculator saves time and reduces chances of human error while computing the total cost of goods and services.
Businesses, manufacturers, wholesalers and retailers can easily calculate GST using the below formula.
Simple 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
Here’s an example to illustrate this:
| Rate (%) | Amount | |
|---|---|---|
| Original cost of goods | Rs.1,00,000 | |
| GST | 18% | Rs.18,000 |
| Cost of goods sold | Rs.1,18,000 |
GST Calculation for Manufacturers :
| Rate (%) | Pre- GST | Post- GST | |
|---|---|---|---|
| Cost of product | 10000 | 10000 | |
| Excise Duty | 12% | 1200 | Nil |
| Profit | 10% | 1000 | 1000 |
| TOTAL | 12200 | 11000 | |
| VAT | 12.50% | 1525 | Nil |
| CGST | 6% | Nil | 660 |
| SGST | 6% | Nil | 660 |
| Final Invoice to the Wholesaler | 13725 | 12320 |
At a cost point of Rs. 10,000, the manufacturer is saving Rs.1405 i.e. a 14% tax saving on the cost. This brings a cost reduction for manufacturers, the benefit of which is ultimately passed on to the wholesalers, retailers and consumers.
GST Calculation for Wholesalers and Retailers
| Rate (%) | Pre- GST | Post- GST | |
|---|---|---|---|
| Cost of product | 13725 | 12320 | |
| Profit | 10% | 1373 | 1232 |
| TOTAL | 15098 | 13552 | |
| VAT | 12.50% | 1887 | Nil |
| CGST | 6% | Nil | 813 |
| SGST | 6% | Nil | 813 |
| Final Invoice to the Consumer | 16985 | 15178 |
GST brings down the cost of the product and thus, the consumer pays a lesser price for the goods at the same profit% earned by wholesalers and retailers.
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