#### Step

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

#### Step

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

#### Step

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.

## Video of the Day

#### Step

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.