General Sales Tax (GST) in Pakistan Explained
General Sales Tax, or GST, is a type of consumption tax that is added to the price of most goods and services in Pakistan. In our country, the Federal Board of Revenue (FBR) manages the GST (also called Sales Tax). Whether you are a business owner selling products or a customer checking your bill, understanding how GST works helps you manage your money better. Our GST calculator is built to handle all types of sales tax categories used in Pakistan.
Key Features of Our GST Tool
This tool is flexible and easy to use for different situations:
- Inclusive vs Exclusive: Calculate GST when the tax is already added to the price (Inclusive) or when you need to add it on top (Exclusive).
- Multiple GST Rates: Easily switch between the standard 18% rate, reduced rates, or zero-rated goods.
- Detailed Breakdown: See exactly how much is the "Base Price" and how much is the "Tax Amount" in your total.
- Dynamic Tips: Get advice on when to register for Sales Tax and how to claim tax refunds.
How to Use the GST Calculator
- Enter the Amount: Type in the price of the item or service.
- Select Calculation Mode: Choose "Exclusive" if you want to find the tax for a price tag. Choose "Inclusive" if you want to know how much tax is inside a final bill.
- Pick a Category: Select the GST rate (e.g., 18% Standard, 1% Reduced, etc.).
- Instant Result: You will see the Net Price, GST Amount, and the Final Total.
Who Should Charge GST?
Businesses in Pakistan with an annual turnover above a certain limit (usually Rs. 1 million for services and higher for products) must register with FBR for Sales Tax. Once registered, a business must include GST in their invoices and file monthly sales tax returns. Registered businesses can also claim "Input Tax" back on items they buy for their business.