Is GST calculated automatically?

The Goods and Services Tax (GST) mechanism in India has simplified the taxation process by including multiple indirect taxes into one unified tax. Under GST, taxes are calculated automatically.

The GST charged on any particular good or service depends on its GST slab rate. Based on the pre-defined GST rate slab, the GST amount is auto-computed by the GST-registered business on the taxable value of goods and services supplied.

For instance, if a product priced at Rs.1000 falls under the 12% GST slab, the GST amount of ₹120 (12% of ₹1000) is automatically calculated by the business. As a consumer, you only pay the final billed amount, including the GST levied on the base price. The tax computations are done in the GST returns filed by the business.

So, GST rates are pre-defined for goods and services, and the applicable GST is automatically calculated by the supplier based on the total value of supply. As an end consumer, you are not required to do GST calculations, as your final invoice will reflect the appropriate taxes.