The Goods and Services Tax (GST) replaced multiple indirect taxes in India on July 1, 2017. Whether you're a business owner filing returns or a consumer wanting to verify a bill, understanding GST calculation is essential.
GST Rate Structure in India
| Rate | Applicable Items (Examples) |
|---|---|
| 0% (Exempt) | Fresh food, milk, eggs, unprocessed food grains, healthcare |
| 5% | Packaged food, economy travel, small restaurants |
| 12% | Processed food, business class travel, smartphones |
| 18% | Most goods and services, electronics, restaurants with AC |
| 28% | Luxury items, automobiles, tobacco, aerated drinks |
The GST Calculation Formulas
Adding GST to a Price (Exclusive → Inclusive)
GST Amount = Original Price × (GST Rate / 100)
Final Price = Original Price + GST AmountExample: A laptop costs ₹50,000 (before GST) with 18% GST:
- GST Amount = ₹50,000 × 18/100 = ₹9,000
- Final Price = ₹50,000 + ₹9,000 = ₹59,000
Removing GST from a Price (Inclusive → Exclusive)
Original Price = GST-Inclusive Price / (1 + GST Rate/100)
GST Amount = GST-Inclusive Price - Original PriceExample: A bill shows ₹1,180 (GST inclusive) at 18% GST:
- Original Price = ₹1,180 / 1.18 = ₹1,000
- GST Amount = ₹1,180 − ₹1,000 = ₹180
Use our GST Calculator to compute these instantly for any amount and rate.
CGST, SGST, and IGST Explained
Intra-State Supply (Within Same State)
When buyer and seller are in the same state, GST is split equally:
- CGST (Central GST) = GST Rate / 2 → Goes to Central Government
- SGST (State GST) = GST Rate / 2 → Goes to State Government
Example: ₹10,000 product at 18% GST (seller in Delhi, buyer in Delhi):
- CGST = 9% of ₹10,000 = ₹900
- SGST = 9% of ₹10,000 = ₹900
- Total GST = ₹1,800
Inter-State Supply (Different States)
When buyer and seller are in different states:
- IGST (Integrated GST) = Full GST Rate → Central Government distributes to destination state
Example: ₹10,000 product at 18% GST (seller in Delhi, buyer in Mumbai):
- IGST = 18% of ₹10,000 = ₹1,800
GST on Services
| Service | GST Rate |
|---|---|
| Restaurant (non-AC, turnover under ₹75L) | 5% |
| Restaurant (AC, chain restaurants) | 5% |
| Hotel room (₹1,001–₹7,500/night) | 12% |
| Hotel room (above ₹7,500/night) | 18% |
| IT services, consulting | 18% |
| Movie tickets (up to ₹100) | 12% |
| Movie tickets (above ₹100) | 18% |
For Business Owners: Creating GST Invoices
Every GST-registered business must issue compliant invoices. Use our Invoice Generator to create professional GST-compliant invoices with automatic CGST/SGST/IGST breakdowns.
Related Tools
- GST Calculator — Calculate GST instantly for any amount
- Percentage Calculator — General percentage calculations
- Invoice Generator — Create professional GST invoices
Frequently Asked Questions
How do I calculate GST for my small business?
Use our GST Calculator: enter your product/service price and select the applicable GST rate. The tool shows you the exact CGST, SGST, or IGST breakdown.
Is GST applicable on all items?
No. Essential items like fresh food, milk, and healthcare are GST-exempt (0%). Check the GST rate for your specific product/service on the official GST portal.