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Navigating Goods and Services Tax (GST)

The GST Calculator is a handy tool for businesses and consumers to easily calculate the Goods and Services Tax (GST) component of a price, or to determine the final price including GST. It supports both adding GST to a net amount and extracting GST from a gross amount.

💸 How to Use the GST Calculator

Calculating GST is straightforward:

1. Select Calculation Type:
   • Add GST (to Net Price): Use this if you have the price before tax and want to find the GST amount and the final price.
   • Extract GST (from Gross Price): Use this if you have the final price (including GST) and want to find the original price and the GST amount.
2. Enter Amount: Input the relevant amount based on your selection (either the price before GST or the price including GST).
3. Enter GST Rate (%): Specify the applicable GST percentage rate.
4. Calculate: Click the "Calculate GST" button.

The calculator will display a summary showing the Base Price (Amount Before GST), the GST Amount, and the Total Price (Amount Including GST). It also includes a "Calculation Steps" section showing the formulas with your entered values.

📊 Calculation Formulas

The calculator uses the following standard formulas:

When Adding GST (Amount is Net Price):

• GST Amount: Net Price × (GST Rate / 100)
• Total Price (Gross Price): Net Price + GST Amount
  (Alternatively: Net Price × (1 + GST Rate / 100))

When Extracting GST (Amount is Gross Price):

• Net Price (Base Price): Gross Price / (1 + GST Rate / 100)
• GST Amount: Gross Price - Net Price
  (Alternatively: Net Price × (GST Rate / 100))

💡 Frequently Asked Questions (FAQ)

What is the difference between adding and extracting GST?

Use "Add GST" when you have a pre-tax price and need to find the total cost. Use "Extract GST" when you have the final price (including tax) and need to know how much of it was the base price and how much was the tax itself, which is common for accounting purposes.

Is GST the same as VAT or Sales Tax?

GST (Goods and Services Tax) and VAT (Value-Added Tax) are very similar types of consumption taxes. Sales Tax is also a consumption tax, but it is typically only collected at the final point of sale. This calculator can be used for any percentage-based tax calculation, though it is named "GST".