You would have come across instances where prices of commodities or charges for services provided by Service providers state 'Inclusive of GST' or 'Excluding GST'.
'Excluding GST' refers to the value of the product or service before including the GST amount in the original value of the product. The effect of GST is still not reflecting in the price of the product. Tax will be calculated & charged separately from the customer.
Example: Where a supply falling under the 12% GST bracket is priced at Rs.1000 (exclusive of GST), the amount of Tax is Rs.120 and the Post GST Value (i.e price after adding GST) is Rs.1120.
'Inclusive of GST' amount, on the other hand, refers to the total value of the product after including the GST effect. In this case, since the price quoted already consists of the tax amount, it is not again charged separately from the customer.
Example: Where a supply falling under the 12% GST bracket is priced at Rs.1000 (inclusive of GST), the amount of Tax is Rs.107.14 and the Pre GST Price (i.e price before adding GST component) is Rs.892.86.
When the calculation runs into multiple times and each instance requiring you to switch between 'Including GST' & 'Excluding GST', a lot of your valuable time is spent in this exercise.
We bring you a handy tool. With just the 'Amount' you know of & the applicable 'GST Rate', we do the calculation for you.
Enter the appropriate Input fields- Amount and the GST Rate applicable for it.
Depending upon the nature of GST involved i.e. 'Inclusive of GST' or 'Excluding GST' we provide you what the Pre GST Price was or what the Post GST Value should be.
You can also easily switch between 'Exclusive' & 'Inclusive' key to help you gauge your transaction decision.