How GST Calculation Works
Exclusive (Add GST): GST = Amount × Rate%. Total = Amount + GST.
Inclusive (Remove GST): Net = Amount ÷ (1 + Rate%). GST = Amount − Net.
📝 Worked Example
Example A — Adding GST (Exclusive): Product price ₹10,000 + 18% GST
| Component | Calculation | Amount |
|---|---|---|
| GST Amount | ₹10,000 × 18% | ₹1,800 |
| Total (with GST) | ₹10,000 + ₹1,800 | ₹11,800 |
| CGST (intra-state) | ₹1,800 ÷ 2 | ₹900 |
| SGST (intra-state) | ₹1,800 ÷ 2 | ₹900 |
Example B — Removing GST (Inclusive): Invoice ₹11,800 inclusive of 18%
| Component | Calculation | Amount |
|---|---|---|
| Base Price | ₹11,800 ÷ 1.18 | ₹10,000 |
| GST in price | ₹11,800 − ₹10,000 | ₹1,800 |
💡 IGST applies on inter-state transactions; CGST + SGST on intra-state. GST rates: 5%, 12%, 18%, 28%.