In contrast to the typical scenario where a provider must shoulder the payment, the Reverse GST method places the onus of paying tax on the products and services on the recipient. Through this system, a recipient is burdened by the government with the responsibility of paying taxes in order to exempt a select group of suppliers.

A recipient might utilize a Reverse GST calculator to get clarification on the cost of a good or service when it comes to paying the tax burden. To find out more about this tool, continue reading.

What is a Reverse GST Calculator?

A financial tool with a mathematical foundation, the Reverse GST Calculator calculates the bill amount of goods and services, excluding of tax. Using the GST-inclusive value and the relevant GST slab rate, this tool assists in calculating the pre-tax cost.

How Does Reverse GST Calculator Work?

A Reverse GST calculator uses a formula and user-specified variable inputs for the post-cost price and the current rate of goods and services tax to calculate the GST exclusive pricing. You must first comprehend the Reverse GST computation formula in order to use this tool.

Formula to Calculate Reverse GST with Example

You must compute the Base Price or the amount exclusive of GST in order to get the Reverse GST value. You can accomplish this by use the following formula.

Base Price is equal to 100 / (100 + Value of an applicable GST Rate) * GST Inclusive Amount.

After obtaining the base price, you can deduct it from the GST-inclusive amount to determine the Reverse GST amount. Reverse GST is therefore equal to GST Inclusive Amount - Base Price.

Let's use an example to better grasp this GST reverse computation formula. For example, you paid ₹1,180 for a product that included the manufacture cost and the 18% relevant GST amount.

In this case, the GST rate is 18% and the sum inclusive of GST is ₹1,180.

We may determine its production cost, which does not include the base price or the GST amount, by entering these figures into the calculation.

Base Price is equal to 1,000 ₹[1,180 × 100 / (100 + 18)].

Therefore, your product's manufacturing cost is ₹1,000 if we take the GST value out of the equation.

How to Use a Reverse GST Calculator?

A step-by-step tutorial for using a Reverse GST calculator can be found here.

• Step 1: Enter the whole amount, inclusive of the applicable GST, in the calculator's designated box.
• Step 3: Select the proper goods and services tax slab/rate that applies to your situation from all of the available possibilities.
• Step 4: Select the 'Calculate' option.

If you are unable to locate the 'Calculate' tab, a Reverse GST calculator will compute the base price, which is a sum that does not include GST. In addition, it will provide the entire GST amount and a breakdown in distinct parts for CGST and SGST.