How to calculate GST in India
- Add GST (exclusive): taxable value × (1 + rate). ₹10,000 at 18% = ₹11,800, with ₹1,800 GST.
- Remove GST (inclusive): amount ÷ (1 + rate). ₹11,800 ÷ 1.18 = ₹10,000.
- Same-state sale: half as CGST, half as SGST. ₹1,800 = ₹900 CGST + ₹900 SGST.
- Inter-state sale: the full amount as IGST, ₹1,800.
The GST 2.0 rates (from 22 September 2025)
The GST Council’s 56th meeting replaced the four main slabs (5, 12, 18 and 28%) with two: 5% and 18%, plus a 40% rate for luxury and sin goods such as pan masala, aerated drinks and larger cars (PIB: 56th GST Council recommendations, PIB FAQs). If a sale and its payment both happened before 22 September 2025, the old rate applies. Some tobacco products kept their earlier rates.
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Quick answers
What are the GST rates in India now?
From 22 September 2025, most goods and services are taxed at 5% (merit rate) or 18% (standard rate), with a special 40% rate for a small list of luxury and sin goods. The old 12% and 28% slabs were folded into these for most items. A few items keep special rates, such as 3% on gold and silver and 0.25% on rough diamonds, and some tobacco products stay on their old rates for now.
How do I calculate GST from an inclusive amount?
Divide the GST-inclusive amount by 1 plus the rate. At 18%: ₹1,180 ÷ 1.18 = ₹1,000 taxable value, so the GST is ₹180. Choose "Remove GST" above to do it automatically.
How is GST split into CGST and SGST?
For a sale within the same state, the GST is split equally: 18% GST is 9% CGST plus 9% SGST (or UTGST in a Union Territory). For a sale to another state, the full 18% is charged as IGST.
Which GST rate applies to my product or service?
It depends on its HSN code (goods) or SAC code (services). Look it up in the CBIC rate notifications or on the GST portal, or ask your CA.