GST Calculation Details

Exclusive: Add GST to base amount | Inclusive: Extract GST from total
₹1 ₹1,00,000
Final Amount
₹11,800
Base Amount ₹10,000
Total GST (18%) ₹1,800
CGST (9%) ₹900
SGST (9%) ₹900

GST Breakdown

GST Rate Slabs in India

GST Rate Categories Examples
0% Essential goods, Healthcare Fresh vegetables, milk, bread, eggs, education services, healthcare
0.25% Precious stones Cut and polished diamonds, precious stones
3% Precious metals Gold, silver, platinum, jewellery
5% Essential items Sugar, tea, coffee, coal, medicines, domestic LPG
12% Standard goods Computers, processed food, mobile phones, business class air tickets
18% Most goods & services Capital goods, industrial intermediaries, soap, toothpaste, restaurant services
28% Luxury & sin goods Luxury cars, tobacco, aerated drinks, luxury hotels (5-star)

What is GST?

GST (Goods and Services Tax) is an indirect tax levied on the supply of goods and services in India. It replaced multiple cascading taxes and unified the Indian tax system. GST is destination-based and collected at the point of consumption.

Implemented: July 1, 2017

Types of GST

  • CGST (Central GST): Collected by Central Government on intra-state supplies
  • SGST (State GST): Collected by State Government on intra-state supplies
  • IGST (Integrated GST): Collected by Central Government on inter-state supplies and imports
  • UGST (Union Territory GST): Applicable in Union Territories

How to Calculate GST?

GST Exclusive (Add GST):

Final Price = Base Amount + (Base Amount × GST Rate / 100)

GST Inclusive (Remove GST):

Base Amount = Final Price / (1 + GST Rate / 100)

Intra-State: CGST = SGST = GST/2

Inter-State: IGST = Full GST

GST Registration

Mandatory for:

  • Businesses with turnover > ₹40 lakhs (₹20 lakhs for special category states)
  • Service providers with turnover > ₹20 lakhs (₹10 lakhs for special states)
  • Inter-state suppliers (any turnover)
  • E-commerce operators
  • Casual taxable persons

GST Input Tax Credit

Input Tax Credit (ITC) allows businesses to claim credit for GST paid on purchases and reduce their GST liability on sales. This eliminates the cascading effect of taxes.

Conditions:

  • Must have valid tax invoice
  • Goods/services received
  • Supplier has filed GST return
  • Tax has been paid to government

GST Compliance

Filing Requirements:

  • GSTR-1: Outward supplies (Monthly/Quarterly)
  • GSTR-3B: Summary return (Monthly)
  • GSTR-4: Composition scheme (Quarterly)
  • GSTR-9: Annual return

Due Dates: Typically 10th-20th of following month