What is GST?
Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. Customers pay GST at the point of sale, and businesses remit it to the government. It is used in over 160 countries including Australia, Canada, India, New Zealand, and Singapore as a comprehensive indirect tax on the supply of goods and services.
GST is designed as a single, comprehensive tax that subsumes multiple indirect taxes previously levied by central and state governments. It creates a unified national market by eliminating the cascading effect of taxes (tax on tax) and allows for seamless input tax credit across the supply chain.
How to Use This Calculator
Step 1: Select your country for automatic GST rate application.
Step 2: Choose calculation type: Add GST (to get gross amount) or Remove GST (to extract net amount from gross).
Step 3: Enter the amount you want to calculate GST for.
Step 4: The GST rate auto-fills based on your selected country, or you can enter a custom rate.
Step 5: Click "Calculate" to see net amount, GST amount, and gross amount instantly.
GST Calculation Examples
Example 1 - Australia (10% GST): A product costs $100 net. Adding 10% GST: $100 × 0.10 = $10 GST. The gross price is $110. If you have a gross price of $110 and need to remove GST: $110 ÷ 1.10 = $100 net, with $10 GST.
Example 2 - India (18% GST): You paid $1,180 gross including 18% GST. The net amount is $1,180 ÷ 1.18 = $1,000. The GST amount is $180. This calculation is common for services in India which typically fall under the 18% slab.
Example 3 - Canada (5% GST + Provincial Tax): In Canada, the federal GST is 5%, but provinces may add PST or HST. For a $200 item in Ontario with 13% HST: $200 × 0.13 = $26 HST, making the gross price $226.
Frequently Asked Questions
How is GST calculated?
To add GST: Net Amount × (1 + GST Rate) = Gross Amount. To remove GST: Gross Amount ÷ (1 + GST Rate) = Net Amount. The GST amount is calculated as: Net Amount × GST Rate. For example, with 10% GST on $100: $100 × 1.10 = $110 gross, or $100 × 0.10 = $10 GST.
What's the difference between GST and VAT?
GST and VAT are essentially the same concept—a consumption tax at each supply chain stage. Different countries use different terms: GST in Australia, Canada, India, New Zealand, Singapore; VAT in UK, EU countries; sales tax in USA. The fundamental mechanism of input credits and value-added taxation is identical.
Do I need to register for GST?
GST registration is mandatory when your business turnover exceeds the country's threshold. In Australia, this is AUD 75,000 (or $150,000 for non-profit organizations). Even below threshold, voluntary registration lets you claim input credits and appear more professional to business customers.
Can tourists claim GST refunds?
Yes, many countries offer Tourist Refund Schemes (TRS) where visitors can claim GST/VAT refunds on goods purchased and taken overseas. Australia has the TRS, Canada offers visitor rebates, and many other countries have similar programs. Minimum purchase amounts and specific procedures apply.
What is the difference between GST-inclusive and GST-exclusive pricing?
GST-inclusive pricing shows the total price including GST (common in Australia for consumer pricing). GST-exclusive pricing shows the price before GST is added (common in B2B transactions). Always clarify which method you're using to avoid confusion.
How does GST work for imports and exports?
Generally, exports are GST-free (zero-rated), meaning you charge 0% GST but can still claim input credits on costs to produce them. Imports typically have GST applied at the border by customs, which registered businesses can claim as input credits. Check specific rules for your country and product type.