Reverse GST Calculator with Formula

Reverse GST Calculator is a simple mathematical-based tool that will help you to calculate Reverse GST just by putting the billed amount. With the help of this tool, you can easily calculate your Bill Amount with the exemption of GST.

How to Calculate Reverse GST in Reverse GST Calculator?

Follow the Step-by-Step guide on How you can simply use this Reverse GST Calculator.

  • Step 1: Enter the Amount on which GST Rates are included in the top most field.
  • Step 2: Now select your GST Slab or say GST Rate which is applicable.
  • Step 3: Amount Excluding GST shows the Base Price of any product or service without GST.
  • Step 4: Total GST Amount, this field will show you the Amount which you have to pay to Government.
  • Step 5: GST Breakup section will show you the amount which will divide under CGST (Central Goods and Service Tax) and SGST (State Goods and Service Tax)

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What is Reverse GST Charge Mechanism?

Reverse charge on GST is a mechanism in which the liability to pay tax is shifted to the buyer from the seller of goods or services. This is applicable in many cases some cases might be the seller is located outside the state from where the goods or services are being procured, or another situation might be a supplier is an unregistered person.

Whereas in another case the seller might be notified under government notification to pay reverse tax for the Goods or Services offered by the. In such cases, the recipient of goods or services shall be liable to pay GST. This can be a burden for the recipient, as they may have to pay GST on supplies that would otherwise be exempt.

Benefits of Reverse GST Calculator

  • 100% free.
  • Quick and easy to use.
  • Has a very easy-to-understand user interface
  • Calculate Reverse Charge GST for FREE.
  • A simplified, step-by-step guide to help you through the process.

The formula for Reverse GST Calculator and its calculation

There are two ways to find Reverse GST: either you can use the above-designed tool for free or you can also use the formula given below to simply calculate Reverse GST on your own.

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First, we will find out the Base Price or say Amount Excluding  GST:

Base Price = Amount Inclusive GST × 100 / (100 + GST Rate Value)

Now with the help of the Base Price, you can easily calculate Reverse GST:

Reverse GST = Amount Inclusive GST – Base Price

FAQs about Reverse GST Calculator and Charge

  • Reverse Charge is only applicable on notified goods and services by the government.
  • This means we can’t pay reverse charges to the government on our own.
  • If a registered person gets the product or any supply from an unregistered person then the registered person is liable to pay the Reverse GST Charge.
  • A reverse Charge is paid by the insurance company when services are offered by Insurance Agent.
  • A reverse Charge is paid by the Business Entity when services are offered by its advocate.
  • A company or a body corporate is liable to pay reverse charges against Director Services.
  • NBFC, Banking Company, or Financial Institution is liable to pay the Reverse Charges against the services offered by the Recovery Agent.

Example based on Reverse GST Calculator

  • Q 1: For Example, if the Manufacturing Cost of a product including GST Amount is ₹1180 at the rate of 18%, then what will be the Base Price or Manufacturing Cost without GST will be?

Ans: Base Price = GST Inclusive Amount × 100 / (100 + GST Rate Value)

Base Price = 1180 × 100 / (100 + 18)

Base Price = ₹1000

  • Q 2: If the service charge of an Electrician offered to a company is ₹2550 then at the rate of 12% at which Base Price Reverse GST would be paid by the company to the government?

Ans: Since in this scenario the Company has to pay Reverse GST to Government so the calculation of the Base Price is as follows:

Base Price = GST Inclusive Amount × 100 / (100 + GST Rate Value)

Base Price = 2550 × 100 / (100 + 12)

Base Price = ₹ 2276.786

Reverse GST Amount = ₹ 273.214 (@12%)

FAQ’s

Q: How do you calculate reverse GST?

Ans: You can easily calculate Reverse GST by using the free tool provided in this post. or else you can use the formula stated above with a simple example.

Q: How do I calculate GST on a total amount?

Ans: GST on a total amount can be calculated with this formula:
GST = (Total Amount × GST Rate) / 100

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