E-commerce

GST & Profit Calculator

Profit with GST treated properly: tax you collect kept out of revenue, and input credit on your purchases netted off where you can claim it.

9 inputs Free, no sign-up

Your figures

That price is

Most mobile, computer and car accessories are taxed at 18%.

What you paid

That cost is
Can you claim input tax credit?

This changes the answer materially: without credit, the tax you paid on stock is a real cost.

Other costs

Charged on the full amount collected from the customer, including GST.

Try an example

Result

Your result

Enter your figures and the result appears here.

Estimates only. Rates, fees and specifications change. Confirm against the official source before you rely on a figure — see our disclaimer.

About this calculator

Two mistakes account for most overstated margins, and both are about GST.

The first is counting the tax you collect as revenue. It is not yours: you take it from the customer and hand it to the government, so it belongs outside the margin entirely.

The second is counting the tax you paid on stock as a cost when you can claim it back. A registered seller nets it against what they collected. An unregistered or composition seller cannot - and for them it genuinely is a cost. This calculator asks which you are, because the answer changes the profit.

How to use this calculator

  1. Enter the selling price and say whether it includes GST.
  2. Set the GST rate that applies to the product.
  3. Enter what you paid for the product and whether that figure includes GST.
  4. Say whether you can claim input tax credit.
  5. Add a fee percentage and any other costs.

The formula

Both sides are split into a taxable value and the tax on it:

From a tax-inclusive figure: value = amount x 100 / (100 + rate)
From a tax-exclusive figure: tax   = amount x rate / 100

Then, with input credit claimable:

Revenue     = selling price excluding GST
Cost        = product cost excluding GST
GST to pay  = GST collected - GST paid on the purchase
Net profit  = Revenue - fees - other costs - Cost

Without input credit, the cost is the tax-inclusive figure and the whole of the GST collected is payable.

SymbolMeaningUnit
Taxable value The sale excluding GST Rs
GST collected Tax charged to the customer Rs
Input credit Tax paid on the purchase, if claimable Rs
GST to pay Collected less input credit Rs

Worked example

Selling at 1,499 including 18% GST, bought at 850 including 18% GST, registered so credit is claimable:

Customer pays        1,499.00
GST collected         -228.66
Your revenue         1,270.34
Product cost net of GST  -720.34   (850 x 100 / 118)
Net profit             550.00   (43.3% margin)

GST collected          228.66
Input credit          -129.66   (the tax inside the 850)
GST to pay over         99.00

Run the same figures as an unregistered seller and the profit falls to 420.34, because the 129.66 of tax paid on the stock stops coming back.

Notes and limits

This is arithmetic, not tax advice. It shows how the numbers behave under a stated set of assumptions. Which rate applies to your product, whether you may claim credit, and what you must file are questions for a practitioner who knows your registration.

  • The CGST/SGST/IGST split is not shown - the total is the same either way, and the GST calculator covers the split.
  • Reverse charge, cess and composition rates are not modelled.
  • Input credit on fees and services is not included, only on the product.
  • Timing differences between collecting tax and paying it are not modelled.

What this calculation assumes

  • GST collected on a sale is treated as passed on, never as income.
  • Input credit, where claimed, is netted against the tax collected on the sale.
  • Marketplace fees are charged on the full amount collected from the customer, including GST.
  • Reverse charge, cess and composition schemes are not modelled.

Frequently asked questions

Why is the GST I collect not part of my revenue?

Because it was never yours. You collect it from the customer on behalf of the government and pass it on. Counting it as revenue inflates both the turnover and the margin, and the money is not there to spend.

What difference does input tax credit actually make?

On the worked example above, 129.66 a unit. A registered seller claims the tax paid on stock against the tax collected on sales, so the product costs its value net of tax. Without credit the tax paid is simply spent, and the profit falls by that amount.

Is the marketplace fee charged on the price including GST?

Usually yes - marketplaces generally charge their commission on the full amount collected from the customer. That is what this calculator assumes. Check your own fee statement, because it is a detail that meaningfully changes the number.

Can I use this to file my returns?

No. It is a pricing tool. It will tell you what a sale leaves you and roughly what tax it generates, but a return depends on your full period of purchases and sales, and on rules this calculator does not model.

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