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Calculate goods and services tax (GST) amounts, net base prices, and gross final invoice amounts for inclusive and exclusive tax models.
Exclusive GST: GST = Base Price × (GST Rate ÷ 100). Total = Base Price + GST. Inclusive GST: GST = Total Price − (Total Price ÷ (1 + (GST Rate ÷ 100))).
A customer pays an invoice of ₹5,900 for electronics under an 18% GST slab. Net Base Price = ₹5,900 ÷ 1.18 = ₹5,000.00. Tax Amount (CGST + SGST) = ₹900.00.
Consumer-facing retail (B2C) typically mandates tax-inclusive pricing, meaning the price displayed on product listing pages must include all applicable sales taxes. In contrast, B2B wholesale transactions operate on a tax-exclusive basis, where GST is added as a separate line item at checkout. Accurately extracting the base price from inclusive consumer orders is vital for correct accounting and input tax credit (ITC) reconciliation.
GST regimes (such as in India, Australia, and Singapore) categorize catalog items into standard tax slabs (typically 0%, 5%, 12%, 18%, and 28%). E-commerce marketplace operators and direct sellers must ensure accurate HSN/SAC code mapping to prevent miscalculating customer tax liability or facing statutory audit penalties.
Registered businesses can claim Input Tax Credit on GST paid for business inputs — including inventory purchasing, warehouse leasing, courier logistics services, and digital software tools. The GST paid on these inputs offsets the output GST collected from end customers, reducing net cash tax liability to the government.
Divide the total inclusive price by (1 + (GST rate ÷ 100)). For an item priced at ₹1,180 with an 18% tax rate, divide ₹1,180 by 1.18 to obtain the base price of ₹1,000. The GST collected is ₹180.
For intra-state transactions (seller and buyer in the same state), GST is split equally between Central GST (CGST) and State GST (SGST). For inter-state transactions across state borders, Integrated GST (IGST) is charged in full and collected by the central government.
Yes, under many GST jurisdictions like India, e-commerce marketplace operators (such as Amazon or Flipkart) are legally mandated to deduct a small percentage (typically 1% TCS) on net taxable supplies before remitting funds to third-party sellers.
Generally, e-commerce businesses selling across state borders or via electronic commerce platforms are required to obtain mandatory GST registration regardless of annual turnover thresholds.
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