Have you ever looked at a bill with the final amount and wondered, "What was the actual price before tax?" or "How much GST did I pay?" This is where Reverse GST Calculation comes in handy.
Why do you need Reverse Calculation?
Reverse calculation is useful when:
- You have the MRP (Maximum Retail Price) which is inclusive of all taxes.
- You need to create an invoice but only know the final agreed amount.
- You want to verify if a vendor has charged the correct tax amount.
The Formula
The mathematical formula to remove GST from a total amount is:
Base Amount = Total Amount / (1 + (GST Rate / 100))
Once you have the Base Amount, you can easily find the GST Amount:
GST Amount = Total Amount - Base Amount
Example Calculation
Let's say you bought a smartphone for ₹11,800 (inclusive of 18% GST).
- Identify Total Amount: ₹11,800
- Identify GST Rate: 18%
- Calculate Base Amount:
= 11,800 / (1 + (18 / 100))
= 11,800 / 1.18
= ₹10,000 - Calculate GST Amount:
= 11,800 - 10,000
= ₹1,800
So, the phone's actual price was ₹10,000, and you paid ₹1,800 as tax.
Using Our Calculator
You don't need to do this math manually! Our Reverse GST Calculator does this instantly.
- Go to the Calculator page.
- Select the "Reverse GST" tab.
- Enter the Total Amount.
- Select the Tax Rate.
- See the breakdown instantly!