1. What is Reverse GST Calculation?

Reverse GST calculation helps determine the pre-tax amount when you know the total amount including GST. This is useful for businesses to calculate their actual revenue before taxes and understand their tax liability.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Total Amount — The final amount including GST (INR)
• Tax Rate — The applicable GST rate in decimal form (e.g., 0.18 for 18%)

Explanation: The formula works backward from the total amount to find the original amount before GST was added.

3. Importance of Reverse GST Calculation

Details: This calculation is essential for businesses to properly account for their revenues, understand their tax liabilities, and maintain accurate financial records for compliance with Indian tax laws.

4. Using the Calculator

Tips: Enter the total amount including GST in INR and the applicable tax rate in decimal form (e.g., 0.18 for 18% GST). The calculator will show both the pre-tax amount and the tax amount.

5. Frequently Asked Questions (FAQ)

Q1: Why use 0.18 as the default tax rate?
A: 18% is the average GST rate for many goods and services in India for AY 2024-25, but you can adjust this for other rates (5%, 12%, 28%).

Q2: How accurate is this calculation?
A: The calculation is mathematically precise for the given inputs. Ensure you're using the correct tax rate for your specific goods/services.

Q3: Can I use this for composite GST rates?
A: This calculator assumes a single tax rate. For composite rates (CGST+SGST), you would need to adjust the total rate accordingly.

Q4: Does this work for all GST slabs?
A: Yes, simply change the tax rate to match the applicable slab (0.05 for 5%, 0.12 for 12%, etc.).

Q5: How should I round the results?
A: The calculator rounds to two decimal places (paise) as standard accounting practice in India.