GST Amount = (Original Cost*GST Rate Percentage) / 100. Net Price = Original Cost + GST Amount.

GST Formula:

The formula to calculate Goods and Services Tax (GST) is as follows:

GST Amount = (Original Cost × GST Rate) / 100

Where:
- GST Amount is the total tax amount to be paid on a particular item or service.
- Original Cost is the initial cost of the item or service before the application of GST.
- GST Rate is the percentage of GST applicable, which varies depending on the type of item or service.

Explanation:

The Goods and Services Tax (GST) is a consumption-based tax imposed on the supply of goods and services. It is an indirect tax that is levied at every stage of production or distribution, starting from the manufacturer to the final consumer. GST eliminates multiple layers of taxation, such as central excise, service tax, value-added tax (VAT), etc., thereby simplifying the tax structure.

To calculate the GST amount, you need to know the original cost of the item or service and the GST rate applicable to it. The GST rate varies depending on the category of goods or services, which are classified into different tax slabs such as 5%, 12%, 18%, and 28%.

The formula mentioned earlier simply calculates the GST amount by multiplying the original cost with the GST rate and then dividing it by 100. This gives the total tax amount that needs to be paid along with the original cost.

For example, let's say you want to calculate the GST amount on a product that costs $100 and has a GST rate of 18%. Using the formula:

GST Amount = (100 × 18) / 100 = $18

So, the GST amount on the product would be $18, and the total cost including GST would be $118.

It is important to note that the GST amount is added to the original cost to determine the final price of a product or service. The GST collected by businesses is then remitted to the government.