Calculates the tax-exempt portion of your House Rent Allowance (HRA) under the old tax regime in India for FY 2025-26. It uses the official formula based on salary, rent paid, and city type.
GST Calculator for India
The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. Calculating GST correctly is essential for businesses and consumers to determine the final price of a transaction. This GST calculator helps you compute the tax amount and the total payable based on the transaction value, the applicable GST rate, and whether the supply is intra-state or inter-state.
How GST is Calculated
GST calculation depends on three key factors: the base amount (net price), the GST rate, and the place of supply. The GST Council sets multiple standard rates for different categories of goods and services; common rates include 5%, 12%, 18%, and 28%. The tax structure differs based on the transaction type:
- Intra-State Supply (within the same state/Union Territory): The total GST is split equally into Central GST (CGST) and State GST (SGST). For example, an 18% GST becomes 9% CGST + 9% SGST.
- Inter-State Supply (between different states/UTs): A single Integrated GST (IGST) is applied at the full rate.
The formula to calculate GST from the net amount is: GST Amount = Net Amount × (GST Rate / 100). The total gross amount is: Total Amount = Net Amount + GST Amount.
If you know the gross amount (price including GST), the net amount is calculated as: Net Amount = Gross Amount / (1 + GST Rate / 100).
Example Calculation
Let's say you are selling goods worth ₹10,000 within the same state (intra-state) at an 18% GST rate.
- Net Amount (before GST): ₹10,000.
- Total GST: ₹10,000 × 18% = ₹1,800.
- CGST: ₹1,800 / 2 = ₹900.
- SGST: ₹1,800 / 2 = ₹900.
- Total Amount (including GST): ₹10,000 + ₹1,800 = ₹11,800.
For an inter-state service where the total invoice is ₹5,250 and the GST rate is 5%, the calculation works backwards:
- Gross Amount (including GST): ₹5,250.
- Net Amount: ₹5,250 / (1 + 5/100) = ₹5,250 / 1.05 = ₹5,000.
- IGST (GST Amount): ₹5,250 - ₹5,000 = ₹250 (or ₹5,000 × 5% = ₹250).
Common Use Cases
This calculator is useful for:
- Businesses creating invoices and determining their tax liability.
- Consumers checking the tax breakdown on a purchase.
- Freelancers and service providers quoting prices to clients across India.
- Accountants verifying tax computations.
Always ensure you apply the correct GST rate as per the HSN (Harmonized System of Nomenclature) code for goods or SAC (Services Accounting Code) for services. Rates are subject to change by the GST Council.
Next Steps: Documenting the Transaction
After calculating the GST, it's important to formalize the agreement. For the sale of goods, use a Sale of Goods Agreement to detail the product description, price, delivery terms, and payment schedule. For services, a Services Agreement defines the scope of work, fees, and terms. Once payment is received, a General Receipt provides proof of payment. These documents help prevent disputes and ensure legal clarity.