How to calculate GST in Pakistan: add or remove 18%

Sales tax sums look easy until a customer asks "is that with tax or without?" Then half the shops take 18% off the total and get it wrong. Here is how to add and remove GST properly, with rupee examples.

The GST calculator does both directions at any rate.

Adding 18% to a price

If your price is without tax, multiply by 1.18.

• Rs 10,000 × 1.18 = Rs 11,800
• The tax is Rs 1,800

Taking 18% out of a price that already includes it

If the price already includes tax, divide by 1.18.

• Rs 11,800 ÷ 1.18 = Rs 10,000 without tax
• The tax inside it is Rs 1,800

The common mistake

Taking 18% straight off a tax-inclusive price:

The wrong way shows more tax than was charged. On a bill that goes to FBR, that's a mistake you don't want.

Which rate applies?

• Goods: federal sales tax, collected by FBR, is 18% standard. Some items have reduced rates or are exempt under the schedules.
• Services: tax is collected by the provinces at their own rates: Punjab (PRA) 16%, Sindh (SRB) 15%, and KPRA and BRA for Khyber Pakhtunkhwa and Balochistan.

Always check the current rate for your item. Budgets change them.

FBR-linked invoices

Tier-1 retailers (large shops, chain stores, shops in malls and others as FBR defines) must run a POS connected to FBR, so every bill carries an FBR invoice number and QR code. Our FBR POS integration guide explains who must and how it works.

Let the till do it

In Munshi, you set each product's tax rate once. Every bill then shows the right tax line, and FBR-linked shops send it to FBR automatically.

Check a sum now in the GST calculator, or start free.