admin
  • 0

Is GST calculated on gross or net income?

  • 0
Is GST calculated on gross or net income?
Share

1 Answer

  1. GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180.
    From the above illustration it is clear that GST is calculated on Gross amount.
    Where a price inclusive is mentioned, a reverse GST calculator will need is applied.
    GST Amount = GST Inclusive Price * GST Rate /(100 + GST Rate Percentage) Original Cost = GST Inclusive Price * 100/(100 + GST Rate Percentage)

    • 0

Leave an answer

You must login to add an answer.