How do I calculate GST in India?

To add GST to a price: GST Amount = Original Price × (GST Rate ÷ 100). Total = Original + GST Amount. Example: ₹1,000 product at 18% GST → GST = ₹180, Total = ₹1,180. To find the original price when GST is included (GST exclusive): Original = GST-inclusive price ÷ (1 + GST Rate ÷ 100). Example: ₹1,180 ÷ 1.18 = ₹1,000 original, ₹180 GST.

What are the GST slabs in India for 2025-26?

India has four main GST slabs: 5% (essential items — basic foods, transport, life-saving drugs), 12% (processed foods, computers, medicines), 18% (most services — restaurants, IT services, telecom, financial services), and 28% (luxury goods — cars, tobacco, aerated drinks, high-end electronics). Some items are zero-rated or exempt, including fresh produce, milk, and education.

What is the difference between CGST, SGST and IGST?

CGST (Central GST) goes to the central government. SGST (State GST) goes to the state government. Together CGST + SGST = total GST on intra-state transactions. For an 18% GST intra-state: 9% CGST + 9% SGST. IGST (Integrated GST) applies to inter-state transactions and imports, and equals the full GST rate — the central government collects and shares with the destination state.

Which items are exempt from GST in India?

Items exempt from GST include: fresh fruits and vegetables, milk, eggs, bread, salt, stamps, judicial documents, printed books, newspapers, bangles, handloom fabric, and services like healthcare and education. Unprocessed food grains like rice and wheat are zero-rated. Always check the latest GST council notifications as exemptions are periodically updated.

CalVerse/Blog/GST Calculator India

🇮🇳 India · GST · FY 2025-26

GST Calculator India 2025-26: All Slabs & Input Tax Credit

May 13, 20269 min readBy CalVerse

GST on an ₹10,000 product at 18% adds ₹1,800 in tax — making the final price ₹11,800. But if you charged ₹10,000 inclusive of GST at 18%, the actual GST component is only ₹1,525 — not ₹1,800. Most business owners and consumers get this wrong. This article explains the exact calculation for both methods with real examples — and which GST slab applies to what.

The 4 GST Slabs — What Falls Where

Essential

Packed food, tea, coffee, edible oil, economy hotels, transport

12%

Standard

Processed food, mobiles, business class flights, non-AC hotels

18%

Standard+

Most services, electronics, AC restaurants, IT services, software

28%

Luxury

Cars, tobacco, aerated drinks, luxury hotels, casinos, betting

📋 Zero Rated and Exempt GST

Some items have 0% GST — meaning they are taxable but at zero rate. Fresh fruits and vegetables, milk, eggs, unprocessed cereals, books, newspapers. Exempt items have no GST at all — healthcare, education, petrol (governed separately). The difference matters for Input Tax Credit — 0% rated allows ITC, exempt does not.

GST Formula — Exclusive vs Inclusive

GST Exclusive (adding GST on top of base price)

When the price shown is BEFORE GST

GST Amount = Base Price × GST Rate / 100

Final Price = Base Price + GST Amount

Example — ₹10,000 product at 18% GST (Exclusive)

Base Price (before GST)₹10,000

GST Rate18%

GST Amount (₹10,000 × 18/100)₹1,800

CGST (9%)₹900

SGST (9%)₹900

Final Price (inclusive of GST)₹11,800

GST Inclusive (extracting GST from a price that already includes it)

When the price shown ALREADY INCLUDES GST

GST Amount = Inclusive Price × GST Rate / (100 + GST Rate)

Base Price = Inclusive Price - GST Amount

Example — ₹10,000 inclusive price at 18% GST

Inclusive Price (with GST)₹10,000

GST Rate18%

GST Amount (₹10,000 × 18/118)₹1,525

CGST (9%)₹763

SGST (9%)₹763

Base Price (before GST)₹8,475

⚠️ The Most Common GST Mistake

Most people calculate 18% of ₹10,000 = ₹1,800 when the price already includes GST. That's wrong. The correct GST in an inclusive price of ₹10,000 at 18% is ₹1,525 — not ₹1,800. The difference is ₹275. Business owners who get this wrong either overcharge customers or underpay the government. Always specify whether your quoted price is GST inclusive or exclusive.

Calculate GST instantly

Enter amount, select rate and toggle inclusive/exclusive — get exact GST, CGST, SGST and final price in one click.

Open GST Calculator →

CGST, SGST & IGST — How Each GST Component Works

GST is split between the central and state government depending on whether the transaction is within a state or between states:

Tax Type	Full Form	When Applied	Split
CGST	Central GST	Intra-state sales (within same state)	50% of total GST
SGST	State GST	Intra-state sales (within same state)	50% of total GST
IGST	Integrated GST	Inter-state sales (different states)	100% goes to centre, then redistributed
UTGST	Union Territory GST	Sales in Union Territories	Replaces SGST in UTs

So on an 18% GST transaction within Maharashtra: CGST = 9% + SGST = 9%. On a transaction from Maharashtra to Karnataka: IGST = 18% (no split). Both result in the same total GST amount — the split only determines who gets the revenue.

GST Rates on Common Products and Services — 2025-26

Product / Service	GST Rate	Notes
Smartphones / Mobiles	12%	Reduced from 18% in 2020
Laptops / Computers	18%	Including accessories
AC Restaurants	5%	No ITC available
Non-AC Restaurants	5%	No ITC available
Hotel Room under ₹7,500/night	12%	Per night tariff
Hotel Room above ₹7,500/night	18%	Luxury hotels
IT / Software Services	18%	Most IT services
Consulting / Professional Services	18%	CA, lawyer, architect fees
Insurance Premium	18%	On premium amount
Home Loan Processing Fee	18%	On fee charged by bank
Petrol / Diesel	0% GST	Outside GST — state VAT applies
Gold / Silver Jewellery	3%	Special rate for precious metals
Cars (small, engine under 1200cc)	28% + 1% cess	Luxury cess on top
Cars (SUV, engine above 1500cc)	28% + 22% cess	Total effective 50%
Medicines / Healthcare	0–5%	Life-saving drugs at 0%

Input Tax Credit (ITC) — The Most Valuable GST Feature for Businesses

Input Tax Credit means a business can deduct the GST it paid on purchases from the GST it collects on sales — paying only the net difference to the government. This prevents GST from cascading at every stage of the supply chain.

ITC Example — Manufacturer buying raw material and selling finished goods

GST paid on raw materials purchased₹5,000 (input tax)

GST collected on finished goods sold₹12,000 (output tax)

ITC set off₹5,000 credit used

Net GST payable to government₹7,000 only

✓ Who Can Claim ITC

Any GST-registered business can claim ITC on purchases used for business purposes. Conditions: supplier must have filed their GSTR-1, purchase must reflect in your GSTR-2B, payment must be made within 180 days of invoice. ITC cannot be claimed on: personal use purchases, restaurants (most cases), cars (unless used for business), insurance (for employees). Claiming ITC correctly can significantly reduce your effective GST cost.

GST Registration — When Is It Mandatory?

Turnover exceeds ₹40 lakhs per year for goods (₹20 lakhs for special category states)
Turnover exceeds ₹20 lakhs per year for services (₹10 lakhs for special category states)
Any business doing inter-state supply regardless of turnover
E-commerce sellers — mandatory regardless of turnover
Reverse charge mechanism recipients — mandatory registration
Voluntary registration is possible below threshold — gives ITC benefit

GST Calculator — Frequently Asked Questions

How do I calculate GST on my invoice?

For GST exclusive invoices: GST = Base Amount × Rate/100. Final invoice amount = Base + GST. For 18% on ₹50,000: GST = ₹9,000, Invoice total = ₹59,000. Split as CGST ₹4,500 + SGST ₹4,500 for intra-state, or IGST ₹9,000 for inter-state. Always mention GST number, HSN/SAC code, rate and amount separately on the invoice as required by GST law.

Is GST charged on GST? What is the effective rate on cars?

No — GST is not charged on GST itself. But some products attract GST plus an additional Compensation Cess on top. Cars above 1500cc attract 28% GST + 22% cess = effectively 50% total tax on the base price. A car with base price of ₹10 lakhs attracts ₹5 lakhs in GST + cess. This is why on-road car prices are significantly higher than ex-showroom base prices.

What is the GST on freelance and consulting income?

Freelance and consulting services attract 18% GST. If your annual turnover exceeds ₹20 lakhs (₹10 lakhs in some states), you must register for GST and charge 18% on your invoices. If below the threshold, registration is optional. Registered freelancers must file GSTR-1 (monthly/quarterly) and GSTR-3B monthly. The GST collected from clients must be paid to the government minus any ITC on business purchases.

Can I claim GST on restaurant bills?

No — ITC cannot be claimed on restaurant bills. Restaurants charge 5% GST but this cannot be used as Input Tax Credit by businesses. Even if you pay a restaurant bill for a business meeting, the GST paid is not recoverable. This is a specific restriction under GST law. The only exception is hotels where room service is part of the accommodation package — that can be claimed if the hotel accommodation itself is a claimable business expense.

What is the difference between GST and VAT?

VAT (Value Added Tax) was the system before GST was introduced in July 2017. VAT was a state-level tax with different rates in different states — leading to a complex patchwork of tax rates across India. GST replaced VAT, Central Excise Duty and Service Tax with one unified national tax system. GST has uniform rates across all states, eliminates the cascading effect of multiple taxes, and has a comprehensive ITC mechanism that VAT didn't fully provide.

GST Calculator India 2025-26 — All Slabs & CGST/SGST/IGST

GST (Goods and Services Tax) replaced a complex web of central and state taxes in India in 2017. It is a destination-based tax collected at every stage of the supply chain, with input tax credit eliminating the cascading effect of old taxes. This calculator instantly computes GST for any amount across all slabs — inclusive and exclusive — with CGST/SGST/IGST breakdown.

⚡ GST Slabs India 2025-26 — Quick Reference

0% (Nil rated)Fresh produce, milk, salt, bread, education

5% slabBasic foods, transport, life-saving drugs

12% slabProcessed foods, computers, medicines

18% slab (most common)Restaurants, IT, telecom, banking services

28% slabCars, tobacco, aerated drinks, luxury goods

CGST + SGST (intra-state)Each = GST rate ÷ 2

IGST (inter-state)Full GST rate, central collection

GST Formula — Add and Remove GST

Adding GST: Total = Price × (1 + Rate÷100)

₹1,000 + 18% GST → ₹1,000 × 1.18 = ₹1,180 · GST = ₹180

Removing GST: Original = Total ÷ (1 + Rate÷100)

₹1,180 GST-inclusive at 18% → ₹1,180 ÷ 1.18 = ₹1,000 original · GST = ₹180

CGST, SGST and IGST Explained

GST is a dual structure between centre and states. For intra-state sales, the GST is split equally: an 18% GST becomes 9% CGST (to centre) + 9% SGST (to state). For inter-state sales or imports, IGST applies at the full rate and is collected by the centre, which then settles with the destination state.

What GST rate applies to restaurants in India?+

Restaurants in India charge 5% GST without input tax credit for standalone restaurants. AC restaurants and those in 5-star hotels charge 18% with ITC. Zomato and Swiggy orders attract 5% GST collected by the platform. Always check your bill — it must separately show CGST and SGST.

What is Input Tax Credit (ITC) in GST?+

ITC allows businesses to deduct the GST they paid on purchases from the GST they collect on sales. Example: a manufacturer pays 18% GST on raw materials (input tax) and collects 18% GST on the finished product (output tax). They only remit the difference to the government. This prevents tax-on-tax (cascading) and is GST's core feature.

When is GST registration mandatory in India?+

GST registration is mandatory when annual turnover exceeds ₹40 lakh for goods (₹20 lakh in special category states) and ₹20 lakh for services. It's also mandatory for inter-state suppliers, e-commerce operators, and those making taxable supplies on behalf of others (agents), regardless of turnover. Voluntary registration is possible below these thresholds.