What is GST?
The Goods and Services Tax (GST) is a single indirect tax on the supply of goods and services across India. It replaced many older taxes such as VAT, service tax and excise duty. Businesses collect GST from buyers and pay it to the government, claiming credit for the GST they paid on their own purchases.
GST rates after GST 2.0
From 22 September 2025, the GST structure was simplified into a few main slabs:
| Rate | What it covers (examples) |
|---|---|
| 0% (exempt) | Fresh food, milk, many life-saving medicines, individual health and life insurance |
| 5% | Daily-use items, packaged food, many medicines and medical devices |
| 18% | Most goods and services: electronics, appliances, small cars, telecom and financial services |
| 40% | Luxury and sin goods: pan masala, aerated and caffeinated drinks, large cars |
| 3% / 0.25% | Gold, silver and jewellery / rough diamonds |
Always check the exact rate for your product or service code (HSN/SAC) on the official CBIC website.
How to use the GST calculator
- Choose Add GST if you have a price before tax, or Remove GST if the price already includes it.
- Enter the amount.
- Pick a GST rate, or type any rate in the box below the buttons.
GST formulas
Adding GST to a net price:
Removing GST from an inclusive price:
Worked examples
| Price | Rate | GST | Total |
|---|---|---|---|
| ₹10,000 (before GST) | 18% | ₹1,800 | ₹11,800 |
| ₹50,000 (before GST) | 5% | ₹2,500 | ₹52,500 |
| ₹1,00,000 (before GST) | 40% | ₹40,000 | ₹1,40,000 |
| ₹2,00,000 gold (before GST) | 3% | ₹6,000 | ₹2,06,000 |
| ₹11,800 (including GST) | 18% | ₹1,800 | ₹10,000 before GST |
CGST, SGST and IGST
- Within a state (seller and buyer in the same state): GST is split equally into CGST and SGST (UTGST in union territories). 18% GST = 9% CGST + 9% SGST.
- Between states: the full GST is charged as IGST.
Tips for businesses
- Show the GST separately on invoices so your business customers can claim input tax credit.
- Registration is required once turnover crosses the threshold for your state and type of business.
- Keep GST you collect separate from your income; it belongs to the government.
Working out your own tax too? Use the income tax calculator. Planning a purchase on EMI? The EMI calculator shows the real cost of the loan.
Frequently asked questions
What are the GST rates in India now?
Since GST 2.0 took effect on 22 September 2025, most goods and services fall into three main slabs: 5% for essentials, 18% as the standard rate, and 40% for luxury and sin goods such as pan masala, aerated drinks and large cars. Some items are exempt (0%), gold and jewellery attract 3%, and rough diamonds 0.25%.
How do I calculate GST on a price?
Multiply the price before GST by the GST rate. For ₹10,000 at 18%, GST is ₹10,000 × 18 ÷ 100 = ₹1,800, so the total is ₹11,800.
How do I remove GST from a total price?
Divide the GST-inclusive price by (1 + rate ÷ 100). For ₹11,800 including 18% GST, the price before GST is ₹11,800 ÷ 1.18 = ₹10,000, and the GST is ₹1,800.
What is the difference between CGST, SGST and IGST?
For a sale within the same state, GST is split equally between the central government (CGST) and the state (SGST); 18% GST becomes 9% CGST + 9% SGST. For a sale from one state to another, the full rate is charged as IGST.
Are the 12% and 28% GST slabs still used?
GST 2.0 moved almost all goods from 12% to 5% and from 28% to 18%. A few items and invoices raised before 22 September 2025 may still show the old rates, which is why the calculator also accepts any custom rate.
Sources
Last updated 19 September 2026. Results are estimates for planning only and are not investment, tax or legal advice. See our disclaimer.