Add or remove GST at any rate with CGST, SGST, and IGST breakdown. Works for all Indian GST slabs.
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Goods and Services Tax is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced multiple older taxes including VAT, Service Tax, Central Excise, and several cesses. Implemented on 1 July 2017, GST follows a destination-based taxation model — the tax goes to the state where goods or services are consumed, not where they are produced. The tax is collected at every stage of the supply chain but allows input tax credit, so businesses only pay tax on the value they add.
India uses a multi-tier GST structure with four main slabs. The 5% slab covers essential items like packaged food, economy travel, and small restaurants. The 12% slab applies to processed foods, business class flights, and work contracts. The 18% slab is the most common rate, covering most goods and services including IT services, financial services, and restaurants in hotels. The 28% slab covers luxury and demerit goods like automobiles, tobacco products, and aerated beverages. Some essential items like fresh food, milk, healthcare, and education are fully exempt at 0%.
When a transaction happens within the same state (intra-state supply), the GST is split equally between CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax). If you buy a product worth ₹1,000 at 18% GST within your state, you pay 9% CGST (₹90) to the central government and 9% SGST (₹90) to the state government. For inter-state transactions, the entire GST is collected as IGST (Integrated GST) — ₹180 in this example — which the central government later distributes to the destination state.
Adding GST is straightforward: multiply the base price by the GST rate and divide by 100. For ₹10,000 at 18%, GST is ₹1,800 and the total becomes ₹11,800. Removing GST from an inclusive price requires the reverse formula: base price equals the inclusive amount multiplied by 100 and divided by (100 plus the GST rate). So ₹11,800 inclusive of 18% GST gives a base price of ₹10,000. This reverse calculation is commonly needed when MRP already includes GST and you need the pre-tax value for accounting.
Businesses registered under GST can claim input tax credit on GST paid on purchases against GST collected on sales. This means if a manufacturer pays ₹1,800 GST on raw materials and collects ₹3,600 GST on finished goods, they remit only ₹1,800 (the difference) to the government. This cascading tax elimination is the core benefit of GST and significantly reduced the effective tax burden on consumers compared to the earlier multi-tax regime.
To add GST: GST = Original Price × Rate / 100. Total = Original + GST. For ₹10,000 at 18%: GST = ₹1,800, Total = ₹11,800. For intra-state supply, split GST equally into CGST and SGST.
Original Price = Inclusive Price × 100 / (100 + Rate). For ₹11,800 at 18%: Original = ₹11,800 × 100 / 118 = ₹10,000. GST component = ₹1,800.
CGST (Central) and SGST (State) apply to intra-state transactions — each gets half the GST. IGST applies to inter-state transactions — the full GST goes to the central government, which settles with the destination state.
Four main slabs: 5% (essentials), 12% (processed goods), 18% (most services), 28% (luxury/demerit). Some items are exempt (0%). Special rates like 0.25% (rough diamonds) and 3% (gold) also exist.
GST is calculated on the transaction value (actual selling price), not MRP. MRP already includes GST. If a discount is given from MRP, GST applies to the discounted price.