One-time
Monthly SIP
60,00,000
5.6
%
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CUSTOM CSS
Amount  Including GST
60,00,000
Total GST amount will be
60,00,000

Understanding the Reverse GST mechanism can be complex, but Vance's Reverse GST Calculator simplifies it, helping you effortlessly determine the pre-tax cost of goods and services. This tool is essential for anyone dealing with Reverse GST scenarios, where the recipient, not the supplier, is liable for the GST.

What is a Reverse GST Calculator?


The Reverse GST Calculator is a digital tool designed to calculate the cost of goods or services before GST is added. This calculator is ideal for figuring out the base price from the total GST-inclusive amount, using the applicable GST rate.

How Vance's Reverse GST Calculator Functions


Our calculator utilizes a formula to compute the GST-exclusive price from the total amount, including GST. Here's a look at how it operates:

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

The Reverse GST amount is then:

Reverse GST = GST Inclusive Amount − Base Price

Example Calculation


Imagine purchasing a product for ₹1,180, including an 18% GST. The base price (excluding GST) is calculated as ₹1,000.

Step-by-Step Guide to Using the Calculator

  1. Enter the GST-Inclusive Amount: Input the total cost, including GST.
  2. Select the GST Rate: Choose the applicable GST slab/rate.
  3. Calculate: Click the ‘Calculate’ button to view the base price and the GST amount.

Advantages of Using Vance's Reverse GST Calculator

  • Cost-Breakdown Analysis: Understand the actual cost and the GST component of your purchases.
  • Financial Planning: Accurately assess your GST liabilities to plan your finances effectively.
  • Informed Purchasing Decisions: Gain insights into the true cost of products or services.
  • Error-Free Calculations: Automated calculations reduce the risk of human error.
  • Accessibility: Easily accessible online, free of charge, and can be used multiple times.

Conclusion


Vance's Reverse GST Calculator is a vital tool for anyone looking to decipher the intricacies of Reverse GST. Whether you're a business owner, a finance professional, or just looking to understand the actual cost of a GST-inclusive product, our calculator ensures accuracy and clarity in your financial endeavors.

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Frequently Asked Questions

What is Reverse GST in India?

Reverse GST in India refers to a situation where the tax payment liability shifts from the seller to the buyer. This mechanism is commonly applied in cases where the supplier is exempt from GST registration.

When is Reverse GST Applicable?

Reverse GST is applicable in specific scenarios like import of services, purchases from unregistered dealers, or in the case of certain notified goods and services as per GST law.

Can I claim Input Tax Credit on Reverse GST?

Yes, businesses can claim Input Tax Credit (ITC) on the GST paid under the reverse charge mechanism, provided the goods or services are used for business purposes and other ITC conditions are met.

Is Reverse Charge Mechanism (RCM) applicable on all goods and services?

No, RCM under GST is not applicable on all goods and services. It is applicable only on specific items and services notified by the GST Council.

What are the penalties for non-compliance with Reverse GST?

Non-compliance with reverse GST provisions can lead to penalties including interest on the unpaid tax amount and other legal consequences as per GST laws.

Where can I find the list of goods and services under Reverse GST?

The list of goods and services under reverse GST is available on the official GST portal and in the notifications issued by the Central Board of Indirect Taxes and Customs (CBIC).
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