A GST Calculator is a financial tool designed to help users calculate the Goods and Services Tax applicable to their purchases or sales. This calculator is particularly useful for businesses, accountants, and individuals seeking to understand the impact of GST on their transactions.

Key Uses of a GST Calculator:

1. Calculate GST Amount:
   Quickly determine the GST amount applicable on a specific sale or purchase based on the GST rate, providing clarity on tax obligations.

2. Determine Total Amount Payable:
   Calculate the total cost of goods or services, including GST, allowing users to see the final amount they need to pay.

3. Extract GST from Total Amount:
   If users know the total amount including GST, the calculator can help extract the GST component, which is essential for record-keeping and compliance.

4. Compare Different GST Rates:
   Evaluate how different GST rates affect the overall cost of goods and services, aiding in pricing decisions for businesses.

5. Estimate Tax Liability:
   Businesses can use the calculator to estimate their total GST liability for a specific period, assisting in financial planning and compliance.

Common Input Fields in a GST Calculator:

• Net Price: The price of the goods or services before GST is added.

• GST Rate: The applicable GST percentage (e.g., 5%, 12%, 18%, 28%).

• Total Amount (optional): The final amount including GST, if the user wants to extract GST from it.

Output Fields:

• GST Amount: The total GST calculated based on the input fields.

• Total Amount Payable: The total cost including GST.

• Net Price (if applicable): The original price before tax, if calculating from the total amount.

Example Scenario:

Imagine you are purchasing a product priced at $1,000 with a GST rate of 18%. The calculator will determine:

• The GST amount, which would be $180.

• The total amount payable, which would be $1,180.

When to Use It:

• During purchasing decisions to understand the total cost including GST.

• For businesses to calculate GST on sales and prepare accurate invoices.

• When filing GST returns to estimate tax liability and ensure compliance.