🧾 Tax & Salary

GST Calculator

Work out GST on any amount — add it to a base price or strip it out of a total.

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What is GST?

Goods and Services Tax (GST) is India's unified indirect tax charged on most goods and services. It replaced a web of older taxes like VAT, service tax and excise duty with a single, transparent structure. GST is an indirect tax on consumption — for the direct tax charged on your earnings, see our income tax calculator, or read our guide to the new vs old tax regime for FY 2026-27. This calculator helps you either add GST to a base price or remove it from a price that already includes tax.

Adding GST

When you know the pre-tax (net) price and want the final price, GST is added on top:

GST = Amount × Rate / 100

Total = Amount + GST

For example, on a net price of ₹1,000 at 18% GST, the tax is ₹180 and the total payable is ₹1,180. This is simple percentage maths — our percentage calculator handles similar everyday sums.

Removing GST (reverse calculation)

When a price already includes GST and you want the base value, you divide it out rather than simply subtracting the percentage:

Net = Amount / (1 + Rate / 100)

GST = Amount − Net

A common mistake is subtracting 18% directly from a GST-inclusive price. On ₹1,180 that would wrongly give ₹967.60. The correct base is ₹1,180 / 1.18 = ₹1,000.

GST rate slabs in India (GST 2.0)

Following the GST 2.0 reform that took effect on 22 September 2025, India moved from four slabs to a simpler structure built around two main rates plus a special rate. Many goods earlier taxed at 12% shifted down to 5%, while most items at 28% moved to 18%. The table below shows the current slabs alongside the kinds of goods and services that typically fall under each.

RateTypically applies toExample categories
Nil (0%)Basic necessities and unbranded essentialsFresh produce, unbranded food grains, most health and education services
5%Mass-use goods and daily essentialsMany packaged staples, footwear and several medicines
18%The standard rate for most goods and servicesElectronics, appliances and the majority of services
40%Luxury and sin goodsHigh-end cars, tobacco products and aerated drinks

The earlier 12% and 28% slabs were largely discontinued in the 2025 reform. Because the classification of individual items can change with government notifications, always confirm the exact rate for a specific product on its GST invoice or the official rate finder.

CGST, SGST and IGST

How the collected tax is shared between the Centre and the states depends on whether the supply crosses a state border:

  • Intra-state (same state): GST is split equally into Central GST (CGST) and State GST (SGST). An 18% rate becomes 9% CGST plus 9% SGST.
  • Inter-state (across states): a single Integrated GST (IGST) is charged at the full rate — 18% IGST — instead of a CGST plus SGST split.

The tax you pay is identical either way; only the division between governments differs. This tool shows the CGST + SGST split in the footnote for the intra-state case.

Worked example: an intra-state invoice

Suppose a Karnataka shop sells goods worth ₹1,000 (net) to a customer in the same state at 18% GST. Because it is an intra-state sale, the tax splits into CGST and SGST:

Line itemAmount
Net (pre-GST) price₹1,000.00
CGST @ 9%₹90.00
SGST @ 9%₹90.00
Total GST @ 18%₹180.00
Invoice total₹1,180.00

Had the buyer been in another state, the invoice would instead show ₹180 as IGST @ 18%, with the same ₹1,180 total. If you only know the ₹1,180 selling price and need to work backwards, the remove-GST method gives ₹1,180 / 1.18 = ₹1,000 net and ₹180 tax — which is exactly how reverse calculations from an MRP work.

Input tax credit (ITC)

Registered businesses can usually claim input tax credit: the GST paid on purchases (input tax) is set off against the GST collected on sales (output tax), so only the difference is remitted. This is what makes GST a tax on value added rather than a cascading tax charged afresh at every stage.

Example: a trader buys stock for ₹1,000 plus ₹180 GST, then sells it for ₹1,500 plus ₹270 GST. The output GST is ₹270 and the input credit is ₹180, so the net GST payable to the government is just ₹90 — the tax on the ₹500 of value the trader added.

ITC can be claimed only against valid tax invoices from GST-registered suppliers who have actually deposited the tax. Personal purchases and most exempt supplies do not qualify for credit.

Composition scheme for small businesses

The composition scheme is a simplified option for small businesses with annual turnover up to a prescribed limit (commonly around ₹1.5 crore for traders and manufacturers, with a lower ceiling for some special-category states). Instead of the regular slab rates, they pay a low flat rate on turnover — typically around 1% for traders and manufacturers and 5% for restaurants — and file returns quarterly rather than monthly.

The trade-off is that a composition dealer cannot charge GST separately on invoices and cannot claim input tax credit, so the scheme suits businesses selling mainly to end consumers rather than to other GST-registered firms.

HSN and SAC codes

Every product is classified under an HSN (Harmonised System of Nomenclature) code and every service under a SAC (Services Accounting Code). These codes decide which GST rate applies and must be quoted on tax invoices above the notified turnover limits. When you are unsure of a rate, matching the item to its HSN or SAC code on the official GST portal is the reliable way to confirm it.

Who needs to charge GST?

Businesses with turnover above the registration threshold must register for GST, collect it from customers and remit it to the government. Registered businesses can usually claim input tax credit on the GST they pay on purchases, so the tax effectively falls on the final consumer. GST is separate from the tax on your salary or business profit — to estimate that, use the income tax calculator.

Frequently Asked Questions

How do I add GST to a price?
Multiply the net amount by the GST rate and divide by 100 to get the tax, then add it to the amount. For example, ₹1,000 at 18% GST gives ₹180 tax and a total of ₹1,180. You can cross-check the maths with the percentage calculator.
How do I remove GST from a total?
Divide the GST-inclusive amount by (1 + rate/100). For an 18% rate, divide by 1.18. The GST portion is the original total minus this net value. Simply subtracting the percentage gives a wrong answer.
What is the difference between CGST and SGST?
For sales within a state, GST is split equally between the Centre (CGST) and the State (SGST). An 18% GST becomes 9% CGST plus 9% SGST. Together they equal the full GST rate.
What are the current GST rate slabs?
After the GST 2.0 reform effective 22 September 2025, GST is built around two main rates — 5% and 18% — plus a 40% special rate for luxury and sin goods. Many essentials remain nil-rated. The older 12% and 28% slabs were largely removed. GST is an indirect tax — to estimate direct tax on your income, use the income tax calculator.
Is GST calculated on the MRP?
MRP is the maximum retail price and is inclusive of GST. To find the tax component in an MRP, use the remove-GST method by dividing the MRP by one plus the applicable rate.
What is input tax credit (ITC) in GST?
Input tax credit lets a GST-registered business set off the GST it paid on purchases against the GST it collects on sales, so only the difference reaches the government. For instance, ₹270 output GST minus ₹180 input GST leaves just ₹90 payable. Credit is allowed only against valid tax invoices from registered suppliers who have deposited the tax.
What is the GST composition scheme?
It is a simplified option for small businesses with turnover up to a prescribed limit — commonly around ₹1.5 crore for traders and manufacturers. They pay a low flat rate on turnover (typically about 1% for traders and manufacturers and 5% for restaurants) and file quarterly, but cannot charge GST separately on invoices or claim input tax credit.
When is IGST charged instead of CGST and SGST?
IGST applies to inter-state supplies, where the seller and buyer are in different states, and is levied at the full rate as a single tax. For intra-state sales within the same state, the identical rate is split equally into CGST and SGST. The total tax is the same either way.
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