Suppose a wholesaler quotes a net price of PKR 100,000 for goods before sales tax. In add mode the tool
applies the federal standard rate of 18%, so the GST component is 100,000 times 0.18, which is 18,000.
The tax-inclusive total the buyer pays is therefore 118,000. The reverse case is just as common: if you
are handed an invoice showing 118,000 inclusive of GST and want the base, you divide by 1.18 to get back
to the 100,000 net, leaving 18,000 as the embedded tax. Working backward matters because input tax on
purchases is claimed on the net figure, not the gross, so extracting the correct base price keeps your
sales-tax return accurate.
Item
Amount (PKR)
Net price (excl. GST)
Rs 100,000
GST at 18%
Rs 18,000
Gross price (incl. GST)
Rs 118,000
How it is calculated
Pakistan levies a federal general sales tax on goods at a standard rate of 18%, collected by the Federal
Board of Revenue. In add mode the tool treats your figure as the net, tax-exclusive amount and multiplies
it by 0.18 to find the GST, then adds the two to give the gross. In remove mode it treats your figure as
the gross, tax-inclusive total and divides by 1.18 to recover the net base, with the difference being the
GST already inside the price. The 18% rate applies to most goods, but certain items carry reduced or
cottage rates, and services are taxed separately by the provincial revenue authorities at rates between
13% and 16% rather than by the FBR. This calculator uses the 18% standard goods rate, so adjust if you
are pricing a reduced-rate item or a service.
Frequently asked questions
What is the GST rate in Pakistan?
The federal standard general sales tax on goods is 18%, charged by the Federal Board of Revenue. Some goods carry reduced or cottage rates, and services are taxed separately by the provinces at 13% to 16%. This tool uses the 18% standard rate for goods.
How do I remove GST from a price that already includes it?
Divide the gross (inclusive) price by 1.18 to get the net base, then subtract the net from the gross to find the embedded GST. For example, a PKR 118,000 gross price divided by 1.18 gives a net of PKR 100,000, with PKR 18,000 as the GST component. The remove-GST mode in this calculator does that division automatically.
Is GST in Pakistan the same as sales tax on services?
No. Federal GST on goods is charged under the Sales Tax Act at 18% and collected by the FBR. Sales tax on services is a provincial levy administered separately by Sindh Revenue Board, Punjab Revenue Authority, Khyber Pakhtunkhwa Revenue Authority, and Balochistan Revenue Authority at rates between 13% and 16%. This calculator covers the federal 18% goods rate only.
Who is required to register for GST in Pakistan?
Any person whose annual turnover from taxable supplies exceeds the registration threshold set by the FBR must register and file monthly returns. Registered businesses collect output tax from their customers, claim input tax credit on their purchases, and remit the net difference to the FBR. Businesses below the threshold may still register voluntarily to claim input credits on business purchases.