Calculate GST amount easily by adding or removing GST.
Goods and Services Tax (GST) is an indirect tax applied to most goods and services sold for domestic or commercial use. Buyers pay the GST, but businesses collect and remit it to the government. In many countries, GST is also referred to as Value Added Tax (VAT).
GST ensures a uniform tax system by replacing multiple indirect taxes such as excise duty, service tax and VAT. This makes it easier for businesses and consumers to understand final pricing.
GST Inclusive: The total price of the product/service already includes GST. Example: If GST = 10% and final price = $110, then net price = $100 + $10 GST.
GST Exclusive: The product price does not include GST. Example: If base price = $100 and GST = 10%, then final price = $100 + $10 GST = $110.
The formula for calculating GST is simple:
GST Amount = (Original Amount × GST%) ÷ 100
Net Price (Inclusive) = Original Amount + GST
Base Price (Exclusive) = Inclusive Amount ÷ (1 + GST%)
Example 1 (Inclusive): Amount = $600, GST = 5% → Net Price = $600 × 1.05 = $630
Example 2 (Exclusive): Amount = $600 (with GST), GST = 5% → Base Price = 600 ÷ 1.05 = $571.43