What is GST?
Goods and Services Tax (GST) is India's unified indirect tax system that replaced multiple taxes (VAT, service tax, excise duty, etc.) on 1st July 2017. GST is levied on the supply of goods and services across India and is a destination-based consumption tax.
GST is administered on the principle of "one nation, one tax." It has eliminated the cascading effect of multiple taxes and created a seamless national market. Every business with annual turnover above ₹20 lakh (₹10 lakh for special category states) must register for GST.
GST Rate Slabs in India (FY 2024-25)
| GST Rate | Category | Examples |
|---|---|---|
| 0% | Exempt | Fresh fruits, vegetables, milk, bread, eggs, salt |
| 5% | Essential Goods | Packed food, cream, skimmed milk powder, coffee, tea, spices |
| 12% | Standard Goods | Frozen meat, butter, cheese, fruit juices, smartphones, umbrellas |
| 18% | Most Goods & Services | IT services, restaurants (AC), financial services, cameras, detergent |
| 28% | Luxury & Sin Goods | Cars, tobacco, aerated drinks, cement, paints, AC, dishwashers |
GST Calculation Formula
GST Amount = Original × Rate/100
Remove GST: Original = Inclusive Price ÷ (1 + Rate/100)
GST Amount = Inclusive − Original
CGST = SGST = Total GST ÷ 2 (for intra-state)
IGST = Total GST rate (for inter-state)
How to use this GST calculator
- Select Add GST if your price excludes tax (to find the customer-facing price)
- Select Remove GST if you have an MRP or invoice price and want to find the base price
- Click the applicable GST rate slab button, or enter a custom rate
- Enter the price — results appear instantly
- The calculator shows base price, total GST, CGST, SGST, and IGST breakdown
📘 Example Scenarios
Scenario 1 — Raj buys a laptop for his office 💻
Raj's vendor quotes a price of ₹60,000 + 18% GST. He wants to know the total bill amount. He selects "Add GST", rate 18%, enters ₹60,000. Result: GST = ₹10,800. Total payable = ₹70,800. CGST = ₹5,400, SGST = ₹5,400. He can claim ITC on ₹10,800 as he's GST-registered.
Scenario 2 — Priya is a seller checking her GST liability 🧾
Priya's restaurant bill to a customer is ₹2,360 (inclusive of 18% GST). She wants to know her actual GST liability. She selects "Remove GST", enters ₹2,360, rate 18%. Base price = ₹2,000. GST payable = ₹360 (CGST ₹180 + SGST ₹180).