1. What is GST?

GST (Goods and Services Tax) is a value-added tax levied on most goods and services sold for domestic consumption. It's a comprehensive, multistage, destination-based tax that's collected at every stage of the production and distribution process.

2. How Does the Calculator Work?

The calculator uses the simple GST formula:

Where:

• \( Net \) — The net amount before GST
• \( GST Rate \) — The applicable GST rate percentage
• \( Total \) — The final amount including GST

3. Importance of GST Calculation

Details: Accurate GST calculation is crucial for businesses to determine pricing, file tax returns, and claim input tax credits. It helps in maintaining compliance with tax regulations.

4. Using the Calculator

Tips: Enter the net amount (before GST) in INR and the applicable GST rate in percentage. The calculator will compute the GST amount and total amount including GST.

5. Frequently Asked Questions (FAQ)

Q1: What are the common GST rates in India?
A: Common rates are 5%, 12%, 18%, and 28%. Some essential items may be exempt or taxed at 0%.

Q2: How is GST different from VAT?
A: GST is a single tax applied across India, while VAT was state-specific. GST eliminates cascading of taxes and has input tax credit mechanism.

Q3: Can I calculate reverse GST (GST from total)?
A: Yes, GST amount can be calculated from total using: GST = Total × (Rate/(100+Rate))

Q4: Is GST applicable on exports?
A: Exports are generally zero-rated under GST, meaning no tax is charged but input tax credits can be claimed.

Q5: What is the GST composition scheme?
A: It's a scheme for small businesses with turnover up to ₹1.5 crore to pay GST at a fixed rate without detailed compliance.