What is GST?
GST (Goods and Services Tax) is a single indirect tax applied on the supply of goods and services in India. It replaced many taxes like VAT, service tax and excise duty from 1 July 2017. GST is charged at every stage of the supply chain, and businesses can claim credit for the tax paid on their purchases.
GST rates in India
| GST rate | Common items |
|---|---|
| 0% | Fresh fruits and vegetables, milk, bread, education, healthcare |
| 5% | Packaged food, footwear below ₹1,000, small restaurants, economy air travel |
| 12% | Processed food, mobile phones (some), business class air travel |
| 18% | Most services, electronics, financial services, restaurants in hotels |
| 28% | Luxury goods, cars, tobacco, aerated drinks |
GST calculation formula
Excluding GST (the amount you enter is before tax):
Total GST = Amount × Rate / 100 Post-GST amount = Amount + Total GST
Including GST (the amount you enter already has tax in it):
Total GST = Amount − Amount × 100 / (100 + Rate) Post-GST amount = Amount − Total GST
Types of GST
- CGST: Central GST, collected by the Central Government on sales within a state.
- SGST: State GST, collected by the State Government on sales within a state.
- IGST: Integrated GST, collected by the Centre on sales between two states and on imports.
- For an 18% sale within a state, the buyer pays 9% CGST + 9% SGST. For a sale to another state, the buyer pays 18% IGST.
Frequently asked questions
How do I calculate GST on ₹1,000 at 18%?
GST = 1,000 × 18 / 100 = ₹180. Total price = ₹1,180. If ₹1,000 already includes 18% GST, the net price is ₹847.46 and the GST is ₹152.54.
What is a reverse GST calculation?
Reverse GST calculation means finding the original price and GST amount from a price that already includes GST. Use the “Including GST” tab for this.
Who needs to register for GST?
Businesses with yearly turnover above ₹40 lakh for goods (₹20 lakh for services, and lower limits in special category states) must register for GST.
What is input tax credit?
Input tax credit (ITC) lets a registered business reduce the GST it pays on sales by the GST it already paid on purchases.
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View allDisclaimer: This calculator is for information purposes only. Results are estimates based on the inputs you provide and do not guarantee any returns. Please consult a qualified financial advisor before making investment or tax decisions.