What is GST?
Goods and Services Tax (GST) is India's unified indirect tax, introduced on 1st July 2017. It replaced over a dozen central and state taxes — including VAT, Service Tax, and Excise Duty — with a single, destination-based tax collected at the point of consumption.
GST follows a multi-stage structure where each entity in the supply chain pays tax only on the value added at their stage. Registered businesses claim Input Tax Credit (ITC), eliminating the cascading "tax on tax" effect of the earlier regime.
How is GST Calculated?
The method depends on whether the price shown is GST-exclusive (tax added separately) or GST-inclusive (tax already baked in).
GST Exclusive
Total Amount = Base Amount + GST Amount
Example: ₹1,000 base @ 18% → GST = ₹180 → Total = ₹1,180
GST Inclusive
GST Amount = Total Amount − Base Amount
Example: ₹1,180 inclusive @ 18% → Base = ₹1,000 → GST = ₹180
Use the toggle above to switch between both modes — our calculator handles it automatically in real time.
GST Inclusive vs GST Exclusive
Knowing the difference is critical for both buyers and businesses when reading invoices or setting prices.
GST Exclusive
The listed price does not include GST. Tax is added at checkout. Common in B2B invoices, wholesale, and manufacturing.
GST Inclusive
The listed price already includes GST. What you see is what you pay. Common in retail MRP, restaurants, and consumer goods.
GST Rates in India
India operates a four-tier GST slab system. Most goods and services fall into one of these categories:
| GST Rate | Category | Examples |
|---|---|---|
| 0% | Exempt | Fresh vegetables, milk, eggs, bread, newspapers |
| 5% | Essential | Edible oils, sugar, spices, tea, LPG, economy air travel |
| 12% | Standard (lower) | Butter, ghee, frozen meat, mobile phones, AC railway tickets |
| 18% | Standard (higher) | Restaurants (AC), IT services, hotel rooms, telecom, insurance |
| 28% | Luxury / Sin | Cars, tobacco, aerated drinks, luxury hotels, online gaming |
Frequently Asked Questions
Any business with an annual turnover exceeding ₹40 lakhs (₹20 lakhs for services; ₹10 lakhs for special-category states) must register for GST. Businesses involved in inter-state supply, e-commerce operations, or specified notified categories must register regardless of turnover.
CGST and SGST are levied equally on intra-state (within the same state) transactions — each at half the applicable slab rate. IGST applies to inter-state transactions and imports, collected entirely by the Centre and then apportioned to the destination state.
Yes. GST refunds are available in cases such as: exports of goods or services (zero-rated), inverted duty structure (inputs taxed higher than outputs), excess balance in the electronic cash ledger, or on account of an assessment/appellate order. Applications are filed online at gst.gov.in.
Yes. Gold attracts 3% GST on its value, while making charges for jewellery attract 5% GST separately. So total GST on jewellery = 3% on gold value + 5% on making charges. Use our Product/Service mode and select "Gold Jewellery" to calculate instantly.
Input Tax Credit allows GST-registered businesses to deduct the GST paid on inputs (raw materials, services, capital goods) from the GST collected on their sales output. This prevents cascading tax — a major improvement over the pre-GST regime — and significantly reduces the overall tax burden across the supply chain.