GST Calculator

Created by Mateusz Mucha and Tibor Pal, PhD candidate
Reviewed by Bogna Szyk and Jack Bowater
Based on research by
Tait, A.A. The Value Added Tax: International Practice and Problems (1988)See 1 more source
Schenk, A.; Oldman, O. Value Added Tax: A Comparative Approach (2007)
Last updated: Sep 12, 2022

GST calculator helps you find out either net or gross price of your product based on a percentage-based GST (Goods and Services Tax) rate. It's straightforward to use - provide values that you know (for example, net price and GST rate) to receive other values (in this case, gross price and tax amount). Since GST is essentially the same thing as value-added tax, you're free to use our popular margin and VAT calculator, which lets you combine a price hike due to your gross margin and the tax on goods and services. If you are living in the United States, you might be more interested in sales tax, which is another form of consumption tax. Keep reading to find out:

  • What is GST?
  • How to calculate GST?

What is GST - GST definition

Goods and Services Tax is the same thing as VAT (value-added tax), so the GST definition is... well, the same. Where applicable, governments impose it on goods and services on every level of the distribution chain. For example, a factory adds it when it sells it to a wholesaler. The wholesaler adds it when it sells it to a retailer, but it can get the original amount returned. In effect, the tax added at this level is applied only to the net price (the difference 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 they 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

  1. Determine the net price (the price without the GST). Let's make it €40.
  2. Find out the GST rate. It will be 10% in our example. If expressed in percentages, divide it by 100. So it's 10 / 100 = 0.1.
  3. To calculate the tax amount: multiply the net price by GST rate. $40 * 0.1 = €4.
  4. To determine the gross price: multiply the net price by GST (again, we'd get €4) rate and then:
  5. Add it to the VAT exclusive price. €40 + €4 = €44.

This is simply a case of an percentage increase calculation and this is what you'd do in any net to gross situation.

Australian GST calculator

The core rules in Australia are the same as everywhere else where VAT is in use. As is the case in many other countries, Australia exempts certain essential goods from being subjected to the tax. Also, businesses with annual turnover below $75,000 do not have to register for GST and don't have to collect it on goods or services. If your business is GST-registered and purchases goods or services for consumption or resupplement to an end customer, it can get a refund on the tax paid on those purchases. Therefore effectively, there is no GST payable on those supplies for your enterprise.

FAQ

How to calculate GST percentage?

  1. Record the price the end consumer pays. Also, find out the original price.
  2. Divide the end consumer price by the original price, subtract one and multiply by 100%. The result is the GST expressed in percentage.
  3. Verify it with Omnicalculator's tool: GST calculator.

How GST works?

GST or Goods and Service Tax is a value-added to the "net price" when sold to the consumer. Net price is GST exclusive, whereas what the consumer pays is GST inclusive. Governments define the percentage and request business owners to add it to the net price. Then, the government collects that money from them.

What does GST means?

The GST definition is Goods and Service Tax. It is an amount that consumers pay when buying a product or service. The government collects it from business owners. That's the reason why businesses added it to the original price of products.

How do I add GST to a price?

  1. Once you have GST from a government website or previously calculated in Omnicalculator's tool: Indian - Australian GST calculator, verify you have the net price, also called GST exclusive price.
  2. Express the percentage as a decimal value. For example, if GST is 10%, write it down as 0.10. If GST is 15%, then you have 0.15.
  3. Add 1 to the GST decimal value. Multiply the result by the net price. Congratulations, you have your price GST inclusive.
Mateusz Mucha and Tibor Pal, PhD candidate
Net price
$
GST
%
Gross price
$
Tax amount
$
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