What Is GST and How to Calculate It
Quick Answer: GST Rates by Country
| Country | GST Rate |
|---|---|
| Australia | 10% on most goods and services |
| New Zealand | 15% on most goods and services |
| Canada | 5% federal GST (plus provincial taxes) |
| India | 0, 5, 12, 18 or 28% depending on category |
| Singapore | 9% GST (from 2024) |
To calculate GST amount: Price x GST rate as a decimal. Example (Australia): 100 x 0.10 = $10 GST. To find the GST-inclusive price: Price x (1 + GST rate). Example: 100 x 1.10 = $110.
GST stands for Goods and Services Tax. It is a consumption tax applied to most goods and services in countries that use it. Understanding how to calculate GST correctly affects pricing, budgeting, invoice preparation and tax filing. Use the free Percentage Calculator on CalConvs to calculate any GST or tax amount instantly.
How to Calculate GST: The Three Most Common Calculations
- Find the GST amount on a pre-tax price: GST amount = Pre-tax price x (GST rate / 100). Example (10% GST): 500 x 0.10 = $50 GST.
- Find the GST-inclusive total from a pre-tax price: Total = Pre-tax price x (1 + GST rate). Example: 500 x 1.10 = $550 total.
- Find the pre-tax price from a GST-inclusive price: Pre-tax price = GST-inclusive price / (1 + GST rate). Example: 550 / 1.10 = $500 pre-tax.
GST in Australia: 10% on Most Things
Australia introduced GST on 1 July 2000 at a rate of 10%. It applies to most goods and services with notable exceptions including basic food, healthcare and education.
| Detail | Information |
|---|---|
| GST rate | 10% on most goods and services |
| GST-free items | Basic food (fresh fruit, vegetables, meat, dairy, bread), healthcare, education, childcare, exports |
| How to add 10% GST | Multiply the pre-tax price by 1.10 |
| How to find GST in a price | Divide the GST-inclusive price by 11. That is the GST component. |
| Business registration threshold | Businesses with turnover of $75,000 AUD or more must register for GST |
Australia GST Example: A plumber charges $400 AUD for labour (pre-tax). GST = 400 x 0.10 = $40 AUD. Total invoice = $440 AUD. To extract GST from the total: 440 / 11 = $40 GST.
GST in India: Multiple Rate Slabs
India replaced its previous tax system with GST on 1 July 2017. Unlike Australia or New Zealand, India uses multiple GST rate slabs depending on the product or service category.
| Rate | What It Covers |
|---|---|
| 0% (nil rated) | Essential food items, books, newspapers, unbranded items, fresh vegetables and fruit |
| 5% | Branded food, packaged food, footwear below INR 1,000, economy restaurants |
| 12% | Processed food, beverages, business class air travel, non-AC restaurants |
| 18% | Most services, electronic items, standard hotels, AC restaurants |
| 28% | Luxury goods, cars, tobacco, aerated drinks, casinos |
India GST Example: You buy a mobile phone in India for INR 23,600 (GST-inclusive at 18%). Pre-tax price = 23,600 / 1.18 = INR 20,000. GST amount = 20,000 x 0.18 = INR 3,600. This splits as 9% CGST (INR 1,800) and 9% SGST (INR 1,800).
GST in Canada: Federal Plus Provincial
Canada has a federal GST of 5%, but most provinces add their own provincial sales tax (PST) or combine it into a Harmonized Sales Tax (HST).
| Province | Total Tax Rate |
|---|---|
| Ontario (HST) | 13% (5% GST + 8% PST) |
| British Columbia | 12% (5% GST + 7% PST separately) |
| Alberta | 5% federal GST only (no provincial tax) |
| Quebec (QST) | 14.975% (5% GST + 9.975% QST) |
| Nova Scotia, PEI, NL, NB | 15% HST |
| Manitoba | 12% (5% GST + 7% RST) |
GST in New Zealand: 15% on Almost Everything
New Zealand has a single flat GST rate of 15% applied to virtually all goods and services. There are very few exemptions, making it one of the simplest GST systems in the world.
New Zealand GST Example: A product costs NZD 115 (GST-inclusive). Pre-GST price = 115 / 1.15 = NZD 100. GST = NZD 15. Shortcut: divide the GST-inclusive price by 1.15 to get the pre-GST price.
Frequently Asked Questions
How do I calculate 10% GST in Australia?
To add 10% GST to a pre-tax price, multiply by 1.10. To find the GST in an inclusive price, divide by 11. For example, $330 AUD / 11 = $30 GST. Use the free Percentage Calculator for any GST calculation.
What is the GST rate in India for services?
Most services in India attract 18% GST. This includes IT services, consulting, banking, insurance, telecom, restaurant services in air-conditioned outlets and most professional services. Some services attract 5%, 12% or 28% depending on the nature of the service.
What is the difference between GST and VAT?
GST and VAT (Value Added Tax) are both consumption taxes applied at each stage of the supply chain, with the end consumer bearing the full cost. They work almost identically. The UK and EU use the term VAT while Australia, Canada, New Zealand, India and Singapore use GST. The UK VAT standard rate is 20%.
Is GST the same as sales tax?
No. Sales tax is applied only at the final point of sale and is not credited between businesses. GST and VAT allow businesses to reclaim the tax paid on their inputs (input tax credit), which avoids cascading taxation throughout the supply chain. This makes GST a more economically neutral tax than simple sales tax.
Related Tools
- Percentage Calculator: calculate any GST amount or percentage instantly
- Discount Calculator: find real prices after discounts including tax
- All Math Tools: 46 tools on CalConvs