GST Calculator

This is an online GST calculator.

What is GST?

Goods and Services Tax is the same thing as VAT (value-added tax) which is imposed on goods and services on every level of the distribution chain.

For example, the factory adds it when it sells it to a wholesaler. Wholesaler adds it when it sells it to a retailer, but it can get the original amount returned. So in effect, the tax added on this level is applied only to the difference in net price between the manufacturer and the wholesaler. The same rule applies to every next transaction with one exemption – the final consumer cannot get the tax refund since he is the last in this chain. It boils down to two things:

• The amount the government collects equals the amount paid on the last transaction.
• The government is sure to collect the tax since it’s collected when every consecutive transaction happens.

How to calculate GST

Determine the net price (the price without the GST). Let’s make it 700.

To calculate GST at 5% rate is very easy: just multiple your GST exclusive amount by 0.05

• $700 is GST exclusive value
• $700 * 0.05 = $35 GST amount (Tax amount)

To get GST inclusive amount to multiply GST exclusive value by 1.05

• $700 is GST exclusive value (Net Price)
• $700 * 1.05 = $735 GST inclusive amount (Gross Price)