GST or Goods and Services Tax is a comprehensive indirect tax reform that has replaced multiple indirect taxes. The GST calculation formula is essentially a tax on the value addition at each stage of production of goods or services, and the tax system is based on the cross-utilization of input tax credit (ITC).

The GST calculation formula can be expressed in different ways depending on whether the transaction involves goods or services. Understanding the GST calculation formula is essential for businesses to calculate their GST liability accurately, optimize production costs, utilize ITC efficiently, and avoid penalties and interest charges. The GST interest calculator is a tool that businesses can use to calculate the interest on late payment of GST.