GST is known as Goods and Service Taxes. It is a value-added tax levied by the government on various goods and services for domestic consumption. GST can be calculated using the original amount price and GST percentage. The GST percentage is calculated based on the types of goods and services. Let us learn how to convert 18 GST in rupees using a simple formula.
What is GST?
Goods and Services Tax is levied on the supply of goods and services throughout India. It was introduced in 2017, and till then it replaced various indirect taxes that were levied by the central and state governments. It is imposed at the point of consumption rather than at the origin. It consists of a dual structure involving taxes at the Central level (CGST) and State Level (SGST).
Highlights:
- Introduction to GST: GST, or Goods and Services Tax, is a value-added tax imposed by the government on goods and services consumed domestically, replacing various indirect taxes.
- Calculation Method: GST can be calculated using a simple formula involving the original price of the product/service and the applicable GST percentage.
- Classification of GST: GST rates vary based on the type of goods and services, with major classifications including 0%, 5%, 12%, 18%, and 28%.
- Formula for Conversion: The formula to convert GST into rupees involves multiplying the original amount by the GST rate and dividing by 100.
- Examples and Applications: Examples illustrate how to calculate GST amount and determine the final price, providing practical insights into GST calculations.
How to convert 18 GST in Rupees?
GST is charged over the original price of a product or service generally domestic goods. We can easily convert GST into rupees with a simple formula. We will require the original price of the product exclusive of tax and the GST percentage on the product.Â
Different products and services are taxed under separate GST percentages. There are five major classifications of GST percentage classification 0%, 5%, 12%, 18%, and 28%. Let us learn how to convert 18 GST in rupees.
Formula to Convert 18 GST in Rupees
To calculate Goods and Services Tax (GST) in rupees we can use the formula given in the table below.
| Formula to convert 18 GST in Rupees |
| Amount of GST =Â Original Amount x GST Rate / 100 |
Here, the Amount of GST is the total GST in rupees, the Original amount is the price at which the product is marked or the MRP of the product or services, GST rate is the percentage of the product or services.Â
For example, consider a product whose original price is 3,456 INR and the GST levied on the product is 18%. Now we will use the above formula to convert 18 GST in rupees.
| GST Calculation: 18 GST in Rupees | ||
| Particulars | Rate (%) | Amount (in INR) |
| Total Invoice Value |
18%Â |
3,456Â |
| GST Amount | 622.08 | |
| Final Price | 4078.8 | |
Let us use the formula given above to calculate the GST amount of INR 3,456.
GST Amount = 3456 x 18 /100 =Â 622.08
Final Amount = 3,456 + 622.08 = 4078.8 INR
18 GST in Rupees: List of GST Rates in IndiaÂ
The list of GST products is listed in the table below.
| List of 18 GST Rates in India | |
| Product | Tax Rate |
| Milk | 0% |
| Eggs | 0% |
| Curd | 0% |
| Lassi | 0% |
| Kajal | 0% |
| Education Services | 0% |
| Health Services | 0% |
| Children’s Drawing & Colouring Books | 0% |
| Unpacked Foodgrains | 0% |
| Unpacked Paneer | 0% |
| Gur | 0% |
| Unbranded Natural Honey | 0% |
| Fresh Vegetables | 0% |
| Salt | 0% |
| Unbranded Atta | 0% |
| Unbranded Maida | 0% |
| Besan | 0% |
| Prasad | 0% |
| Palmyra Jaggery | 0% |
| Phool Bhari Jhadoo | 0% |
| Products | Tax Rates |
| Sugar | 5% |
| Tea | 5% |
| Packed Paneer | 5% |
| Coal | 5% |
| Edible Oils | 5% |
| Raisin | 5% |
| Domestic LPG | 5% |
| Roasted Coffee Beans | 5% |
| PDS Kerosene | 5% |
| Skimmed Milk Powder | 5% |
| Cashew Nuts | 5% |
| Footwear (< Rs.500) | 5% |
| Milk Food for Babies | 5% |
| Apparels (< Rs.1000) | 5% |
| Fabric | 5% |
| Coir Mats, Matting & Floor Covering | 5% |
| Spices | 5% |
| Agarbatti | 5% |
| Coal | 5% |
| Mishti/Mithai (Indian Sweets) | 5% |
| Life-saving drugs | 5% |
| Coffee (except instant) | 5% |
| Butter | 12% |
| Ghee | 12% |
| Computers | 12% |
| Processed food | 12% |
| Almonds | 12% |
| Mobiles | 12% |
| Fruit Juice | 12% |
| Preparations of Vegetables, Nuts Fruits, or other parts | 12% |
| Packed Coconut Water | 12% |
| Umbrella | 12% |
| Hair Oil | 18% |
| Capital goods | 18% |
| Toothpaste | 18% |
| Industrial Intermediaries | 18% |
| Soap | 18% |
| Ice-cream | 18% |
| Pasta | 18% |
| Toiletries | 18% |
| Corn Flakes | 18% |
| Soups | 18% |
| Computers | 18% |
| Printers | 18% |
| Small cars (+1% or 3% cess) | 28% |
| High-end motorcycles (+15% cess) | 28% |
| Consumer durables such as AC and fridge | 28% |
| Luxury & sin items like BMWs, cigarettes, and aerated drinks (+15% cess) | 28% |
18 GST in Rupees: Components and RisksÂ
There are different slabs of GST rates, such as 0%, 5%, 12%, 18% and 28%. There are three major components in Goods and Services Taxes.Â
- CGST (Central Government Service Tax) is collected by the Central government.
- The State Government collects SGST (State Government Service Tax) in intra-state sales.Â
- IGST ( Integrated Goods and Service Tax) is levied by the central government mainly on the interstate goods and services supply. The total revenue generated between the State and Central government.
Examples for 18 GST in Rupees
Let us read some examples for calculating 18 GST in Rupees.
Example 1: If the total original amount is Rs. 2065, excluding the GST 18%, then what is the Total Price?
Solution: Use the simple formula to calculate the GST amount.
Original Price = 2065
GST Rate = 18%
GST Amount = Original Price x GST Rate/100
GST Amount = 2065 x 18/100 = 371.7
Actual Price =Â 2436.7 INR
Example 2: If the total amount of a product is Rs 1500 including GST rate of 18%. Find the original price of the product.
Solution: We can use the formula given below to calculate the actual price after deducting the GST amount.Â
Actual Price = Total Amount / (1+ GST Rate)
                     = 1500 / (1 + 0.18)
                     =  1500/1.18
                     =  1271.18 INRÂ
Therefore, the actual price of the product after removing GST is 1271.18 INR.
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18 GST in Rupees FAQs
How to convert GST into Rupees?
GST can be converted into rupees using a simple formula. The total GST amount is the product of the original amount and GST rates are divided by 100.
What is the 18% GST?
The 18% GST in rupees is calculated by multiplying the original amount by 18 percent.
How much GST is 100 Rs 18?
The total price of Rs 100 is 118 INR which needs to be paid in total for 18% GST.
What is GST in Rupees?
GST in rupees is calculated by using the original price of the products or services multiplied by the GST rates divided by 100.
