GST Calculator

Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. It is a consumption tax ultimately paid by the end consumer but collected by businesses at each stage of the production and distribution chain.

How GST Works

GST operates on a credit system, where businesses can claim input tax credits for the GST they pay on their purchases against the GST they collect on their sales. This mechanism helps avoid tax cascading (tax on tax) and ensures that the tax burden ultimately falls on the final consumer.

GST Calculation Formulas

Adding GST to a Price

Removing GST from a Price

GST Rates Around the World

GST/VAT rates vary significantly around the world. Here are some examples of standard rates in different countries:

• Australia: 10% GST
• New Zealand: 15% GST
• Singapore: 7% GST (increasing to 8% in 2023)
• India: Multiple rates - 0%, 5%, 12%, 18%, 28%
• United Arab Emirates: 5% VAT
• United Kingdom: 20% VAT
• European Union: Minimum standard rate of 15%, varies by country
• Canada: 5% GST plus provincial sales taxes

Many countries also have reduced rates for essential goods and services, as well as exempt categories.

GST Registration and Compliance

In most jurisdictions, businesses must register for GST if their turnover exceeds a specified threshold. Once registered, businesses must:

• Charge GST on taxable sales
• Issue proper tax invoices
• File regular GST returns
• Maintain accurate records
• Remit the net GST collected to tax authorities

Common GST Terms

• Input Tax: GST paid on purchases
• Output Tax: GST collected on sales
• Input Tax Credit (ITC): Credit for input tax that can be offset against output tax
• Taxable Supply: Goods or services subject to GST
• Exempt Supply: Goods or services not subject to GST
• Zero-rated Supply: Supply taxed at 0% GST rate, allowing for input tax credits

Note: This calculator provides general guidance. For specific tax advice, consult with a tax professional familiar with the GST/VAT regulations in your jurisdiction.