The Goods and Services Tax (GST) is a tax imposed by the government on the sale of goods and services. It is charged on the total amount of the product or service and affects the original price. However, I have a friend who wants to know how to remove GST from total amount so that he can calculate the original amount. He calculated the GST using the formula mentioned below. Scroll down to learn the steps to subtract the GST amount.
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To remove GST from the total amount, you need to follow the below-mentioned steps:
First, you need to calculate the GST amount using the formula: GST = Original price of the product - [Original price of the product x {100/(100+GST%)}]
Then, calculate the net price by subtracting the GST amount from the original price of the product or service.
Check out the formula for removing GST from total amount below:
GST Amount = Original Price – [Original Price x {100/(100+GST%)}]
Net Price = Original Price – GST Amount.
Let us see how to remove GST amount from total amount by reformulating the example that I am using while giving my PG rent:
The total amount of the PG rent is INR 7500.
Suppose the GST amount is INR 1100.
Hence, the price without GST will be calculated as INR 7500 - INR 1100 = INR 6400.
Hope you understood the technique to remove GST from the total amount. Moreover, you can also use any online GST calculator to do an easy calculation.
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Here are the complete details for
how to remove GST from total amount with example.
To remove the Goods and Services Tax (GST) from the total amount, you are required to perform a reverse calculation. You can calculate the original amount (before GST) by dividing the total amount by the GST rate.
Here are the steps for
how to exclude GST from total amount
:
GST rates depends on the type of goods or services. There are typically four GST rates: 5%, 12%, 18%, and 28%. You are required to know the applicable rate for your transaction.
Multiply the total amount by the GST rate in decimal form. For example, if the GST rate is 12%, multiply the total amount by 0.12.
GST Amount = Total Amount * (GST Rate / 100)
Subtract the GST amount from the total amount to find the amount before GST:
Original Amount = Total Amount - GST Amount
Here's an example:
Let's say you have a total bill of Rs1,000, and the GST rate is 18%.
GST Amount = ₹1,180 * (18 / 100) = Rs1,000 * 0.18 = Rs180.
Original Amount (before GST) = Rs1,000 – Rs180 = Rs920.
So, the original amount before GST is Rs920.
Remember, this calculation is based on a scenario where the entire amount is subject to the same GST rate.
This is
how to subtract GST from total amount.
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Krishna
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2023-05-23T11:54:55+00:00 2023-11-01T16:22:43+00:00Comment
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