Goods and Services Tax (GST) Calculator

What is Goods and Services Tax (GST)?

Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.

The GST Formula

The formula for calculating GST is:

\[GST = Price \times \frac{GST Rate}{100}\] \[Total Price = Price + GST\]

Where:

• Price = Original price before GST
• GST Rate = The applicable GST rate in percentage

Step-by-Step GST Calculation

1. Identify the original price of the good or service and the applicable GST rate.
2. Convert the GST rate to a decimal by dividing by 100.
3. Multiply the original price by the GST rate (in decimal form) to get the GST amount.
4. Add the GST amount to the original price to get the total price including GST.

Example Calculation

Let's calculate the GST for a product priced at $100 with a GST rate of 10%:

1. Original price = $100, GST rate = 10%
2. GST rate in decimal = 10 ÷ 100 = 0.10
3. GST amount = $100 × 0.10 = $10
4. Total price including GST = $100 + $10 = $110

Visual Representation

The green portion represents the original price ($100), and the blue portion represents the GST amount ($10).