How much is 18% GST in the India?
- Price excl. GST:
- ₹0.00
- GST 18%
- ₹0.00
- Total incl. GST:
- ₹0.00
Calculating GST is a simple and quick operation that can be done in a few seconds. But not everyone knows how to add and subtract percentages for this. The mistakes that are made when calculating a GST are always the same, although these are easy to avoid with the right formulas.
It is essential to clarify certain points, so as not to fall into avoidable mistakes when calculating the total amount of an account. These are the data to know in order to calculate the GST correctly and simply.
How much is GST in the India?
Value Added Tax or GST is a tax levied on the sale of goods or services. GST is charged through the production and distribution chain, so that at the end of the chain, consumers are the ones who pay it.
To determine the GST it is necessary to consider the selling price of the product or service offered, and also a specific percentage to obtain the final GST cost. The percentage to be charged varies depending on the product or service in question. It also depends on the social demands of the countries involved.
The standard rates are usually imposed on the purchase of general goods and services, while the lower rates are usually for basic necessities or foodstuffs. For example, a smartphone may have a GST of 18%, which would be the standard GST;
How to calculate the GST included?
In some stores or web portals you will see prices with the comment "GST not included". This means that this is not the final price, and that to this price you will have to add the GST cost to obtain the total to be paid.
The following formula should be used to calculate the GST in this case:
That is, if you have a microphone worth ₹1,400 without GST and with 18% GST, the formula would look like this:
The price of the item should be multiplied by the GST percentage, and that number divided by 100. In this case it would give ₹252. So the GST amount would be ₹252.
Another alternative would be to divide 18% by 100, resulting in 0.18 and multiply this by the ₹1,400, resulting in ₹252 in the same way.
To finish, the ₹1,400 microphone price plus the calculated GST must be added, giving a final result of ₹1,652.
How to calculate a price without GST included?
The opposite situation can also arise, where you want to remove the GST. This happens when on the price tag one is given, but with the comment that GST is included. Knowing the net price of the product could be a totally valid question to have.
This can be answered by applying the formula of:
In this case the ₹1,652 total price of the microphone would be divided by 1.18. Resulting in the following: ₹1,400
The best formula for calculating GST in the India
In summary, if you have a GST of 18%, these are the operations to perform:
- ₹1,400 x 0.18 = ₹252 (To calculate GST on prices without GST)
- ₹1,400 x 1.18 = ₹1,652 (To calculate the total price including GST)
- ₹1,652 ÷ 1.18 = ₹1,400 (To calculate the price without GST)
Although learning how to calculate the GST is a great help, when dealing with more complex figures and needing maximum security in the results, a GST calculator will be the best option to use.
Use our GST calculator to get instant results and simplify your calculations even more. You don't need to complicate mathematical operations when you can do them in an automated way with this calculator.