The Goods and Services Tax (GST) Act was passed by the Indian Parliament on March 29, 2017, and came into effect on July 1 of the same year. GST is an indirect tax levied by the Indian government on all goods and services purchased within its jurisdiction. This single tax system replaced multiple indirect taxes like sales tax, VAT, and excise duty, simplifying the taxation process.

All businesses operating in India are required to register for GST and obtain a GST Identification Number (GSTIN). Consumers must pay this tax on every good they purchase and service they avail. Therefore, it is essential to understand how to calculate GST correctly. You can easily determine this by using a GST calculator.

Every product or service you buy is subject to GST. It's important to know how much tax you are paying for the goods and services you use. That's where an Indian GST calculator can be extremely helpful.

• It provides you with an accurate estimate of the GST you need to pay.
• It saves you valuable time by quickly calculating GST.
• It helps prevent fraud by making you an informed consumer who understands the taxes involved.

The GST amount calculator follows a standardized method to calculate GST. The calculator performs two key functions: adding GST to the cost of a product or service and removing GST from the final price.

For adding GST, the formula is:

GST amount = (Price x GST%)

Net price = Cost of the product + GST amount

For example, if a product or service costs Rs. 100 and the GST rate is 18%, the GST amount would be 100 x 18% = Rs. 18. The net price you would pay would be Rs. 118.

To remove GST from the net price of a product, use the following formula:

GST = Original cost – [Original cost x {100/(100+GST%)}]

Net price = Original cost – GST

For example, if the product's price after applying 18% GST is Rs. 118, the original cost would be 118 – [100/(100 + 18%)] = Rs. 100.

To use the GST calculator India on the Sensex India website, follow these simple steps:

• Input the original cost and the GST percentage.
• The GST amount will be instantly calculated and displayed.

• Determine the exact tax amount you are paying.
• It’s quick and accurate, saving you valuable time.
• It helps protect you from fraudulent activities due to incorrect GST calculations.

GST has significantly changed the tax landscape in India, as all businesses, regardless of size or operation area, are now under a unified tax system. Use the online GST calculator to find out how much tax you are paying on the goods and services you buy.

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Some common questions are addressed in the FAQ section below.