1. What is Reverse GST Calculation?

Reverse GST calculation helps determine the original price of goods or services before GST was added. This is useful for businesses that need to calculate their input tax credit or for consumers who want to know the actual product cost before taxes.

2. How Does the Calculator Work?

The calculator uses the reverse GST formula:

Where:

• \( \text{Total Amount} \) — Final price including GST (₹)
• \( \text{Tax Rate} \) — GST rate as percentage (e.g., 18%)

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

3. Importance of Reverse GST Calculation

Details: Reverse GST calculation is essential for businesses to claim input tax credits, for accounting purposes, and for consumers to understand the actual cost of goods before taxes.

4. Using the Calculator

Tips: Enter the total amount including GST in Indian Rupees and the applicable GST rate (default is 18%). The calculator will show the pre-tax amount and the tax amount separately.

5. Frequently Asked Questions (FAQ)

Q1: Why is 18% the default GST rate?
A: 18% is the standard GST rate for most goods and services in India for FY 2024-25, but you can adjust it for other rates (5%, 12%, 28%).

Q2: Can I use this for composite GST rates?
A: This calculator assumes a single GST rate. For composite rates, you would need to know the exact breakdown of CGST and SGST.

Q3: Is this calculator valid for all Indian states?
A: Yes, since GST is uniform across India, this calculation works for all states and union territories.

Q4: How accurate is this calculation?
A: The calculation is mathematically precise for the given inputs. However, always consult a tax professional for official tax calculations.

Q5: Can I use this for other countries' sales taxes?
A: The formula works for any value-added tax system, but you would need to use the appropriate tax rate for that country.