Scenario: You're buying a laptop worth ₹50,000 with 18% GST.
Calculation:
- Base Price: ₹50,000
- GST Amount: ₹50,000 × 18% = ₹9,000
- Total Amount: ₹50,000 + ₹9,000 = ₹59,000
Calculate GST amounts instantly for your business transactions. Choose your GST rate and enter the amount to get detailed calculations.
Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced multiple cascading taxes charged by the central and state governments.
Scenario: You're buying a laptop worth ₹50,000 with 18% GST.
Calculation:
GST can be calculated simply by multiplying the Taxable amount by GST rate. If CGST & SGST/UTGST is to be applied then CGST and SGST both amounts are half of the total GST amount.
GST = Taxable Amount x GST Rate
If you have the amount which is already including the GST then you can calculate the GST excluding amount by below formula
GST excluding amount = GST including amount/(1+ GST rate/100)
For example: GST including amount is Rs. 525 and GST rate is 5%.
GST excluding amount = 525/(1+5/100) = 525/1.05 = 500
GST rates are as under
0% (necessity items like milk, wheat flour)
0.25% (rough diamonds)
3% (gold, silver etc.)
5%
12%
18%
28%
Most of the goods fall in the category of 5%, 12% and 18%, while most of the services fall in the category of 18%. GST of 28% is applicable on some items like cement, car, tobacco. There is also a Cess which is applicable only on a handful of goods like car, tobacco, pan masala.
There are also goods/services on which GST is applicable at NIL rate or which are exempted. Read our article regarding Difference between NIL rate, 0% GST rate and exempted goods/services.
In the case of reverse charge also, the calculation will be same. For example, you have purchased goods worth Rs. 5,000 from a person and you are required to pay GST on reverse charge at the rate of 18%. So you have to pay a GST on reverse charge of Rs. 900 (5,000 x 18%). If CGST & SGST is to be levied then CGST & SGST of Rs. 450 each is to be paid.