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Cost price before GST
GST rate on purchase
Selling price before GST
GST rate on sale
Total Cost (with GST)
—
Purchase + Input GST
Total Revenue (with GST)
—
Sale + Output GST
GST Payable
—
Output GST - Input GST
Profit
—
Revenue - Cost (before GST)

GST & Profit Breakdown

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What Is a GST Profit Calculator?

A GST Profit Calculator computes your profit after accounting for GST on purchases (input tax) and sales (output tax). It shows the GST payable (output - input) and your actual profit margin after GST considerations.

GST is a destination-based consumption tax. As a business, you act as a collection agent for the government. This calculator helps you understand the true cost and revenue including GST, and calculate the tax liability for each transaction.

GST Profit Formula

Input GST = Purchase Price × GST Rate
Output GST = Selling Price × GST Rate
GST Payable = Output GST - Input GST
Profit = Selling Price - Purchase Price
Purchase Price = Cost before GSTSelling Price = Revenue before GSTGST Payable = Remitted to government

Frequently Asked Questions

How does GST affect profit?
GST is a pass-through tax. You collect output GST on sales and pay input GST on purchases. The difference (output - input) is remitted to government. GST itself does not affect profit, but it affects cash flow and pricing.
What is input tax credit (ITC)?
ITC allows you to claim credit for GST paid on purchases against GST collected on sales. If you pay ₹1,800 GST on purchase and collect ₹2,700 on sale, you remit only ₹900 to government. ITC reduces your effective tax burden.
What are the GST rates in India?
GST has 4 main slabs: 5% (essential goods), 12% (processed goods), 18% (most services and manufactured goods), 28% (luxury items). Some items are exempt. Choose the correct rate for your product/service category.
Is GST included in MRP?
Yes, MRP (Maximum Retail Price) is inclusive of all taxes including GST. However, B2B transactions often quote prices excluding GST. Always clarify whether price is inclusive or exclusive of GST.
How to calculate GST-inclusive price?
If price includes GST: Base Price = Total Price / (1 + GST Rate). For ₹1,180 at 18% GST: Base = 1180 / 1.18 = ₹1,000, GST = ₹180. This calculator handles both inclusive and exclusive pricing.

Found This Useful?

Understand GST impact on your business profitability.