Tax Formula • Published on July 30, 2026 • Last updated July 30, 2026
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Base pre-tax price of goods or services
Goods and Services Tax percentage rate
Tax amount charged on the transaction
Post-tax price paid by the customer
Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services. When computing transactions, you either add GST to find the final customer price, or subtract (remove) GST from the final retail price to find the pre-tax base cost.
CGST (Central GST) and SGST (State GST) are levied on intra-state transactions (within the same state) and split equally. IGST (Integrated GST) is levied on inter-state transactions and collected by the central government.
Input Tax Credit allows a business to reduce the GST paid on purchases from the GST liability it collects on sales, effectively taxing only the value added at that stage.
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