GST Calculator
Quickly add or remove GST from any amount with a clear breakdown of CGST and SGST.
Add GST
Remove GST
The Ultimate Guide to Pakistan’s GST and Our Online Calculator
Just as in every country in the world, taxes play an important role in the economy of Pakistan. The tax includes every purchase and sale. In Business selling, it forms part of the invoice value that the tax submission and filing are also included in the sale of the goods. Accurate tax computation, GST is particularly complicated, and so a calculator is required. With our exceptional calculator, the GST tax can easily be calculated. This comprehensive guide is focused on the intricate aspects of the GST system and how to utilize the calculator with effective and unique methods.
Using the Dual Function GST Online Calculator
According to the design perspective, our tools are geared to be the fastest in relation to the mitigation of GST and to handle both of them appropriately:
Add GST (For Invoicing and Pre-Purchase Estimates)
Ideal for businesses that are developing invoices and anyone who is also trying to estimate.
You can review the Detailed Results as the calculator shows a detailed analysis in a flash. You will see the Base Amount as the value you first keyed in. Figured out the taxed value is the GST Amount. The Amount is the final price inclusive of GST.
Let’s consider the Pakistani rupees, for example. If there is a product costing ₨ 1,000, and it is charged a GST rate of 17%.
GST Amount = ₨ 1,000 * 0.17 = ₨ 170.
Then the Total Amount will = ₨ 1,000 + ₨ 170 = ₨ 1,170.
Remove GST For Base Price
This function is best used by customers who want to calculate the price of an item before GST from a price that has GST, and is also useful for businesses in figuring out the value for their returns.
In the Remove GST calculator, type the price you paid or the price on the sticker, and enter the Amount as the GST Inclusive Amount.
Choose the appropriate GST rate for that item in the Select the GST Rate.
Look at the Clear Breakdown and see how the calculation is done, and the original Base Amount, Total GST included in the price are distinctly presented.
Let us start with the Pakistani Currency.
Tax Inclusive Price = ₨ 1,170 for a product with GST of 17%.
What is the GST Amount?
Base Amount = ₨ 1,170 / (1 + 0.17) = ₨ 1,000.
GST Amount = ₨ 1,170 – ₨ 1,000 = ₨ 170.
An Insight into the Pakistani GST System
Relative to many countries, Pakistan has a less complex GST System. It is referred to as a multi-stage tax (value-added) on the supply of goods and services in the country. It replaced the Sales Tax in certain sectors and is a Federal tax administered by the Federal Board of Revenue (FBR).
What Makes Pakistan GST Unique?
Our GST calculator considers the unique features:
Standard Rate: The standard GST rate in Pakistan is 17% for most goods and services.
Zero Rating: Some essential goods and services may have reduced rates and/or be GST exempt.
Turnover Rate: Annual,l with budgetary allocations above 10 million rupees are required to apply for GST.
Let us clarify with the Pakistani Currency.
A business with an annual revenue of ₨ 15 million must apply for GST. However, if the revenue is less than ₨ 8 million, it is GST exempt
The Different GST Tax Slabs in Pakistan
In Pakistan, GST has classified goods and services into different tax slabs, which are:
0%: Basic food, agricultural products, and a range of basic health and educational services.
1%: Some supplies and services to registered persons and select industries.
17%: The most common and standard rate of taxation on goods and services.
Other rates: Some other luxury goods and certain specific services might carry a higher rate of tax.
The example in Pakistani Currency
Let’s take mobile phones as an example, which are priced at ₨ 30,0,00 and assume a GST of 17%
GST charged = ₨ 30,000 × 0.17 = ₨ 5,100
Total Price = ₨30,000 + ₨ 5,100 = ₨ 35,100
Understanding How to Compute GST
Formula 1: How to Add GST to a GST-excluded Price
This applies in situations where someone has a certain amount as a base price and is looking to add tax and calculate a final amount.
The GST Amount may be calculated using the following methods: Base Amount (with respect to GST) is determined using the expression GST Amount / (GST Rate / 100).
The total price is given by adding the base amount to the GST Amount.
Currency Example: PKR
Base Amount: ₨ 5,000 Rate: 17%
₨ 850 is given by ₨ 5,000 x 0.17.
Thus, the total price: ₨ 5,000 + ₨ 850 = ₨ 5,850
Formula 2: How to Remove GST in Dollar Amounts (for a price with GST).
This is the formula to use when looking for the Base Amount before the tax (pre-tax):
Base Amount = GST Inclusive Price / (1 + (GST Rate / 100))
The total amount of GST is equal to Price Inclusive of GST minus Base Amount.
Our online GST calculator uses these precise formulas to give you accurate results every time.
Taking the Current Exchange Rate into Account:
Total Amount: ₨ 11,700
GST Rate: 17%
Base Amount = ₨ 11,700 / 1.17 = ₨ 10,000
GST Amount = ₨ 11,700 – ₨ 10,000 = ₨ 1,700
Excess Computation: Input Tax Credit (ITC)
What do you mean by Input Tax Credit (ITC)?
ITC is one of the pillars of the GST system. It permits a business to offset the GST it incurred on inputs (raw materials, services, etc.) during the period it has to pay GST on output (finished goods). It removes the cascading taxes (or tax on tax) and ensures tax is charged only on the value addition at each level of the supply chain.
Case Study
A manufacturer pays ₨ 1,700 GST on raw materials worth ₨ 10,000…
Then, she sells the finished goods for ₨ 20,000 + ₨ 3,400 GST.
She can claim ITC of ₨ 1,700 and pays ₨ 3,400 – ₨ 1,700 = ₨ 1,700 to the government.
What is the common GST tax in Pakistan?
The common GST tax in Pakistan is 17% for most goods and services. There are a few goods and services that may have lower rates or are totally exempt.
How do I know which GST rate applies to my product?
The Federal Board of Revenue (FBR) provides detailed guidelines on taxes applied to various goods and services. The information can also be found on the FBR website and with professional tax consultants.
Is this tool suitable for both consumers and businesses?
Yes. The “Remove GST” calculator is intended for consumers to help assess the actual value of the goods. The “Add GST” calculator is used by businesses to prepare correct tax invoices, and the “Remove GST” calculator assists with the calculation of tax assessed for the returns filed.
Do we have to pay for the GST calculator?
No. Our GST amount calculator is free from any form of charges or restrictions.
Conclusion
For millions of citizens, understanding and working with the GST system is part of everyday life in Pakistan. The clear and precise calculations provided by the use of the fully functional GST calculator can help with balancing the finances of small businesses and individuals. Our tool can perform both “add” and “remove” calculations, which broadens its usability.
