GST stands for Goods and Services Tax that a tax introduced in Canada in 1991. GST is applied to the most goods or services produced in Canada with the exception of groceries and medical and finance services. The current GST rate in Canada is 5 percent. As an example, calculate GST if the total amount paid for a product is $1,596.

## Step 1

Divide the GST rate by 100 to calculate GST rate as decimal. In our example, it is 5/100 = 0.05.

## Step 2

Add 1 to the value from Step 1. In our example, it is 0.05 +1 = 1.05.

## Step 3

Divide the Total amount by the value from Step 1 to calculate the product value before GST. In our example, $1,596/1.05 = $1,520.

## Step 4

Multiply the product value by the GST rate from Step 1 to calculate GST. In our example, GST is equal to $1,520 x 0.05 = $76.