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What is Reverse GST and How to Calculate Using Calculator

Introduction

Understanding GST transactions is still a difficult task for businesses. Businesses stuck in the tax web are always looking for ways to streamline their way of doing business. With the advent of Reverse GST Calculators, this process has become much more streamlined than before. Basically in this article we will explore the importance of this tool which serves to provide a comprehensive guide for businesses to navigate tax reversal with ease. The Reverse GST Calculator helps enterprises accurately calculate their tax liability and empowers them seamlessly to ensure compliance. Whether you are a small business owner or an experienced financial professional, it is vital that you understand the power of a reverse GST calculator so that you can take advantage of it effectively. In this article, we have told you completely about the Reverse GST Calculator, what its benefits are and how you can use it.

Reverse GST Calculator

Reverse GST Calculator is a digital tool that is basically designed to calculate the cost of goods or services before adding GST. This reverse GST calculator works to find the base price from the total GST - inclusive amount using the applicable GST rate.

Calculate Reverse GST Now!

Click the button below to access our reverse GST calculator:

Calculate Reverse GST

Steps to Use Reverse GST Calculator:

  • Enter the amount including GST: Instead of entering the fair value, enter the total amount including GST in the first field.
  • Choose the GST Rate: Below the total amount field, choose the GST rate from the dropdown menu (i.e. 0.25%, 3%, 5%, 12%, 18%, and 28%).
  • Click "Calculate" Button: After entering the total price and GST rate, click on the calculate button to see reverse GST.
  • View Results: The calculator will display both the GST amount from the total amount that you entered and the amount excluding GST.

Formula to Calculate Reverse GST

To determine the reverse GST price you first need to calculate the base price amount or the amount excluding GST. Basically you can calculate this using the formula given below:

Base Price = GST inclusive amount * 100 / (100+Applicable GST rate value)

Once you have the base amount after calculation, you can calculate the reverse GST amount by subtracting this from the GST inclusive amount.

Reverse GST = GST inclusive amount – Base price

Benefits of Reverse GST Calculator

There are several benefits of using a Reverse GST Calculator which are as follows:

  • This calculator basically helps individuals to identify the various steps involved in the total price of a product or service, such as including GST and specific quantities.
  • This calculator proves to be very useful in planning your finances by estimating the exact amount of GST payment.
  • After finding out your GST-exclusive amount, you will basically get a resourceful information about the product/service. You can use this information to make purchasing decisions.
  • If you calculate the GST amount manually, it may not be completely transparent as it involves human errors. Reverse GST Calculator is an automated tool that basically eliminates all possibilities of such errors and also ensures proper pricing.
  • This financial tool is completely free, you can use it online and even multiple times a day without any obligation.

Conclusion

After studying this article thoroughly, you would have complete knowledge about the Reverse GST Calculator. You can easily calculate the basic tax and pre-tax amount for your desired goods and services with the help of this calculator. But it is very important that you identify the applicable GST slab before using this tool. It is very useful for everyone whether it is a small business or a big financial owner.

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