Add GST to a price or remove GST from a GST-inclusive amount. Instantly see the CGST and SGST breakdown for the current GST 2.0 slab rates — 5%, 18%, or 40%.
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The GST Council simplified the rate structure in September 2025 — the old 12% and 28% slabs were scrapped. Most 12% items dropped to 5%, and most 28% items dropped to 18%, with only sin/luxury goods moving to a new 40% slab. The table below reflects the current structure.
| GST Rate | Common Goods | Common Services |
|---|---|---|
| 0% (Exempt) | Fresh fruits/vegetables, milk, eggs, bread, books, salt, life-saving medicines | Healthcare, education, individual life/health insurance premiums |
| 5% | Packaged food, tea, coffee, edible oil, medicines, footwear under ₹1,000, butter, ghee (moved down from 12%) | Rail travel, economy air travel, restaurants (non-AC), transport |
| 18% | Electronics, ACs, refrigerators, cement, small cars, soaps, toothpaste (most items moved down from 28%) | IT services, telecom, banking, consulting, AC restaurants, hotels |
| 40% (Sin/Luxury) | Tobacco, pan masala, aerated & caffeinated drinks, large cars (>350cc bikes), yachts, personal aircraft | Casinos, betting, online money gaming, lotteries |
Rates are indicative post-GST 2.0 reform — always verify the current HSN/SAC code for your specific item. Gold attracts a special 3% rate; petroleum products and alcohol remain outside GST.
The two most common GST calculations: adding GST to a base price (for invoicing) and extracting GST from an inclusive price (for expense claims and ITC).
| Rate | Add GST: ₹10,000 + GST | CGST + SGST Split | Remove GST: ₹10,000 incl. |
|---|---|---|---|
| 5% | ₹10,500 | ₹250 + ₹250 | Base ₹9,524 + GST ₹476 |
| 18% | ₹11,800 | ₹900 + ₹900 | Base ₹8,475 + GST ₹1,525 |
| 40% | ₹14,000 | ₹2,000 + ₹2,000 | Base ₹7,143 + GST ₹2,857 |
Formula to remove GST: Base price = Inclusive price × 100 ÷ (100 + rate). A common mistake is subtracting 18% from the inclusive price — that over-removes GST. On ₹10,000 inclusive at 18%, the GST portion is ₹1,525, not ₹1,800.
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GST (Goods and Services Tax) is a unified indirect tax levied on the supply of goods and services in India. It replaced multiple cascading taxes and came into effect on July 1, 2017.
Under GST 2.0 (effective 22 September 2025), India moved to a simplified 3-slab structure: 5% (essential goods, packaged food, medicines), 18% (most goods and services, electronics, ACs, cars), and 40% (sin/luxury goods — tobacco, pan masala, aerated drinks, large vehicles, online gaming). The earlier 12% and 28% slabs were scrapped — most 12% items moved to 5%, and most 28% items moved to 18%, with only sin/luxury goods escalating to the new 40% slab.
For intra-state transactions, GST is split equally between Central GST (CGST) collected by the central government and State GST (SGST) collected by the state. For inter-state transactions, Integrated GST (IGST) applies.
To remove GST from a GST-inclusive price, use the formula: Pre-GST Price = (GST-inclusive Price × 100) ÷ (100 + GST Rate). Our calculator handles this automatically using the "Remove GST" mode.
Services taxed at 18%: IT services, consulting, banking and financial services, legal services, advertising, event management, AC restaurants, most telecom services, and general insurance. The 18% slab is the most common for B2B services. Basic healthcare, education, and essential food items are exempt or at lower rates. Always verify the SAC code for your specific service category.
Under RCM, the recipient of goods or services pays GST to the government instead of the supplier collecting and remitting it. Common RCM scenarios: GTA (Goods Transport Agency) services, advocate services, director fees, sponsorship to body corporate, and import of services. If your business receives RCM-liable services, you must pay the applicable GST even if the supplier does not charge it.
Businesses with annual turnover below Rs 1.5 crore (Rs 75L for special category states) can opt for the Composition Scheme. Benefits: pay fixed GST at 1-6% of turnover, simpler quarterly filing. Restrictions: cannot charge GST to customers, cannot claim input tax credit, cannot make inter-state supplies. Suitable for small retailers and manufacturers with mainly B2C sales.
ITC = Total ITC x (Taxable Turnover divided by Total Turnover). This is the proportionate ITC rule under GST Rule 42. Example: 80% taxable sales and 20% exempt means you can claim 80% of common input credit. GST software like ClearTax and Zoho Books handles this apportionment calculation automatically.
Calculate break-even point in units and revenue — find how many sales you need to cover fixed and variable costs.
Calculate gross, operating and net profit margins — or find the selling price needed for your desired margin.
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