GST

GST-inclusive vs exclusive prices

Exclusive pricing shows tax on top of a base amount; inclusive pricing already contains tax and must be divided by one plus the GST rate to find the base.

Exclusive example

A ₹1,000 exclusive price at 18% becomes ₹1,180 after ₹180 GST is added.

Inclusive example

A ₹1,180 inclusive price at 18% contains a ₹1,000 base and ₹180 GST. Dividing ₹1,180 by 1.18, rather than subtracting 18%, is the correct method.

Check the invoice

A calculator cannot establish whether a displayed price is legally inclusive or what classification applies. Confirm the commercial and tax treatment with the supplier or relevant professional.

How to check a GST amount

For an exclusive amount, multiply the base by the selected rate. For an inclusive amount, divide by one plus the rate. At 18%, ₹10,000 becomes ₹11,800; ₹11,800 ÷ 1.18 returns a ₹10,000 base and ₹1,800 GST. This verifies arithmetic only, not the applicable rate or tax treatment.

This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.

Use the relevant calculator

Frequently asked questions

Does the calculator determine the correct GST rate?

No. It only applies the rate selected. Classification and transaction facts determine the applicable treatment.

How do I remove GST from an inclusive price?

Divide the inclusive amount by one plus the rate, then subtract the base amount to find the GST component.