Financial glossary
GST
GST, or Goods and Services Tax, is an indirect-tax framework; a GST calculation relates an exclusive taxable value, a tax amount, and an inclusive value at an entered rate.
What GST means
Goods and Services Tax applies under statutory classification, notification, valuation, and place-of-supply rules. A percentage calculator can show arithmetic but cannot decide whether GST applies or which rate is correct for a particular supply.
Exclusive and inclusive values
A GST-exclusive taxable value is the base before GST is added. An inclusive value contains that base plus GST. To reverse an inclusive calculation, divide by one plus the rate as a decimal rather than subtracting the rate from the inclusive total.
CGST, SGST, UTGST, and IGST
At a high level, intra-State arithmetic commonly shows CGST with SGST or UTGST, while inter-State arithmetic shows IGST. Legal treatment depends on place-of-supply and transaction facts, which a simple calculator does not determine.
Simple arithmetic example
At an entered 18% rate, adding GST to an exclusive value of ₹1,000 produces ₹180 GST and an inclusive value of ₹1,180. Removing embedded GST from ₹1,180 at the same rate recovers ₹1,000.