VAT calculator for India
The standard VAT rate in India is 18%. To remove it from a gross price you divide by 1.1800, which is not the same as taking 18% off. GST has slabs of 5%, 12%, 18% and 28%; 18% is the most common.
- VAT to add
- 18.00
- Net price behind a gross one
- 100.00
- VAT inside a gross price
- 18.00
- Line total for the quantity
- 118.00
- VAT fraction of a gross price Multiply a gross figure by this to get the VAT directly.
- 0.152 542
- Gross-up multiplier
- 1.180 000
- How far the subtraction method goes wrong
- 3.24
Show the working
- Price excluding VAT = 100
- VAT rate = 18
- Price including VAT = 118
- Quantity = 1
- VAT to add = 100 * 18 / 100 = 18
- Price including VAT = 100 + 18 = 118
- Line total for the quantity = 118 * 1 = 118
- Net price behind a gross one = 118 / (1 + 18/100) = 100
- VAT inside a gross price = 118 - 100 = 18
- VAT fraction of a gross price = (1 + 18/100) > 0 ? (18/100) / (1 + 18/100) : 0 = 0.152 542
- Gross-up multiplier = 1 + 18/100 = 1.18
- wrong_way = 118 * (1 - 18/100) = 96.76
- How far the subtraction method goes wrong = 100 - 96.76 = 3.24
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- gross = net x (1 + rate)
- net = gross / (1 + rate)
- VAT fraction of a gross price = rate / (100 + rate) = 0.152542
The VAT fraction is the shortcut accountants use: at 18% you multiply a gross figure by 0.152542 to get the VAT straight out.
Rates and reduced-rate categories change by legislation. The rate here is a default; check the current one before invoicing.
GST has slabs of 5%, 12%, 18% and 28%; 18% is the most common.
Frequently asked
What is the VAT rate in India?
The standard rate is 18%.
How do I remove VAT from a price?
Divide by 1.1800. Subtracting 18% instead undercharges the net figure every time.
Where the numbers come from
- Standard rates as published by the national tax authorities; reduced and zero rates are not modelled.