Reverse GST Calculator

The reverse GST calculator by Clear helps you easily find out the Goods and Services Tax (GST) amount and the taxable value from a price inclusive of GST. This calculator is commonly used by persons and entities complying with the reverse charge mechanism under the GST law.

Discover the power of accuracy with the Clear Reverse GST Calculator. Whether you're a business owner, a finance professional or a savvy shopper, effortlessly calculate the pre-GST value of any item. Save time, make informed decisions, and simplify your financial planning—no more guessing, just accurate results at your fingertips. Try it now!

What is Reverse GST?

A Reverse GST calculation involves calculating the GST component of an amount that already includes the tax. It is often called GST reverse calculation or GST element calculation.

For example, if a product or service price is quoted as GST-inclusive (i.e., the price already includes the GST value), and you want to arrive at the GST amount separately, you would reverse-calculate GST.

GST is mainly included in the bill that the consumer pays to the retail store, which deposits such GST with the government. Imagine a scenario where the recipient or buyer must pay tax under the reverse charge mechanism. Their vendors would have raised an invoice without GST, tagging it as 'tax is payable under RCM by the recipient'. Such buyers must find out the GST and self-invoice if the vendor is unregistered under the GST law and deposit it with the government. The Cleartax Reverse GST calculator comes to your rescue here!

What is a Reverse GST Calculator?

Reverse GST Calculator is a ready-to-use tool provided by team Clear. By applying the relevant GST rate, it helps you arrive at the GST value from a GST-inclusive taxable value. You can get a split of total GST liability for different components, such as the central tax, state tax, and integrated tax, as applicable.

How Does Reverse GST Calculator Work

You can use ClearTax Reverse GST Calculator Online to calculate GST liability in 3 simple steps, given below!

Step 1: Enter 'Amount including GST'.

Step 2: Next, select 'Yes' from the drop-down menu if you have purchased goods within the state. If not, select 'No'.

Step 3: Select the applicable one from the range of total GST rates from the drop-down box.

See the magic unfold before you. Our Reverse GST calculator gives the result in a jiffy!

How to Calculate Reverse GST?

You can calculate reverse GST yourself by following the below steps-

• Check for the Gross Amount: Start with the gross amount that includes GST.
• Know the GST Rate: Find out the GST rate that applies to the product or service.
• Arrive at the Divisor: Use a divisor that is one plus the GST rate in decimal format.
• Calculate the Base Amount: Divide the gross amount by the divisor to arrive at the base price before GST.
• Compute the GST Amount: The gross amount minus the base price will determine the GST charged.

Reverse GST Calculation Formula

Below are the formulae for the reverse calculation of GST.

Firstly, find the GST exclusive price-

GST exclusive price = (GST inclusive price)/(1+(GST rate/100))

Lastly, find the GST amount with the GST reverse calculation formula-

GST Amount = GST Inclusive Price − GST Exclusive Price

These formulae help break down the gross amount into components, GST and base amount.

Reverse GST Calculation Example

Let's understand the reverse GST calculation with an example. The gross amount paid, including GST, is Rs.1,300, and the total GST rate is 12%. It is an interstate transaction.

• Gross Amount: Rs.1,300
• GST Rate: 12%
• Divisor: 1.12 (since 1 + 0.12)
• Base Amount: Rs.1,160.71 (Rs.1,300 / 1.12)
• Total GST Amount (Integrated tax/IGST): Rs.139.29 (Rs.1,300 - Rs.1,160.71)

Advantages of Reverse GST Calculator

There are many perks of using ClearTax Reverse GST Calculator, listed as follows-

• Reverse GST Calculator lets you break down costs by showing GST-inclusive and exclusive amounts.
• Reverse GST Calculator ensures accurate GST calculation, helping you plan your finances better.
• Knowing the GST-exclusive price provides you with better insights for smarter purchases as a consumer.
• Manual GST calculations can be error-prone. However, this automated tool ensures accuracy and fair pricing.
• The reverse GST calculator is a free online ‘reverse GST calculator India’ that you can use anytime and anywhere.