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GST Calculator: How GST Is Calculated (Add or Remove GST)

Goods and Services Tax (GST) is applied to most goods and services in India. Understanding how to add or remove GST ensures you're never overcharged or undercharging your customers.

GST Calculator

Total (incl. GST)
₹11,800.00
Amount before GST
₹10,000.00
GST amount
₹1,800.00
CGST + SGST (intra-state)
₹900.00 + ₹900.00
IGST (inter-state)
₹1,800.00

Since 22 September 2025 most goods and services fall in the 5% or 18% slab, with 40% for sin and luxury goods. Check the current rate for your HSN/SAC code.

Updated October 2026 · Reviewed against our calculation methodology

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What Is GST?

GST is a value-added tax levied on the supply of goods and services in India (implemented July 2017). It replaced a complex web of central and state taxes including VAT, service tax, and excise duty with a single, unified tax system.

GST is a destination-based tax, meaning it is collected at the point of consumption, not production. The tax is split between the central government (CGST) and state government (SGST), or as IGST for inter-state transactions.

GST Tax Slabs (GST 2.0, from 22 September 2025)

RateCategoryExamples
0%ExemptFresh fruit & vegetables, milk, eggs, paneer, individual health & life insurance, most education
5%Merit / essentialsEveryday packaged food, soaps, shampoo, toothpaste, most medicines, restaurant services
18%StandardMost goods and services — electronics, TVs, ACs, small cars, cement, telecom, IT services
40%Sin / luxuryPan masala, aerated & sugary drinks, large cars, motorcycles above 350 cc
3% / 0.25%Special ratesGold, silver & jewellery (3%); rough diamonds (0.25%)

How to Calculate GST

Adding GST to a price (exclusive → inclusive)

When you know the price before tax and want to find the final price:

GST Amount = Original Price × (GST Rate ÷ 100)
Final Price = Original Price + GST Amount
Example: Product costs ₹1,000, GST rate = 18%
GST = ₹1,000 × 18/100 = ₹180
Final Price = ₹1,000 + ₹180 = ₹1,180

Removing GST from a price (inclusive → exclusive)

When the price includes tax and you want the base price:

Original Price = Final Price ÷ (1 + GST Rate ÷ 100)
GST Amount = Final Price − Original Price
Example: Invoice shows ₹1,180 (GST inclusive), rate = 18%
Base Price = ₹1,180 ÷ 1.18 = ₹1,000
GST Paid = ₹1,180 − ₹1,000 = ₹180

CGST, SGST, and IGST — What's the Difference?

CGST
Central GST

Half of GST on intra-state sales. Goes to the central government.

SGST
State GST

Other half of GST on intra-state sales. Goes to the state government.

IGST
Integrated GST

Full GST on inter-state sales. Collected by the centre and shared with states.

Example: A seller in Maharashtra sells to a buyer in Maharashtra at 18% GST → 9% CGST + 9% SGST. If selling to a buyer in Gujarat → 18% IGST.

Common Mistakes in GST Calculation

✗ Using the inclusive rate to calculate tax on an exclusive price
✓ Always check whether the quoted price includes GST before applying the formula.
✗ Adding GST to an already GST-inclusive price
✓ First extract the base price, then re-apply if necessary.
✗ Using the wrong slab rate
✓ Verify the HSN/SAC code for your product/service to confirm the correct rate.
✗ Ignoring the CGST/SGST split on invoices
✓ For intra-state invoices, always show both CGST and SGST separately.

Popular Variations

Frequently Asked Questions

What is GST full form?

GST stands for Goods and Services Tax. It is a comprehensive, indirect tax levied on the supply of goods and services in India, implemented on 1 July 2017, replacing multiple central and state taxes.

Who ultimately pays GST?

The end consumer bears the GST burden. Businesses collect GST on behalf of the government and can claim Input Tax Credit (ITC) for GST paid on their purchases, passing only the net tax to the government.

Which items are exempt from GST in India?

Many essential items are exempt from GST including fresh fruits and vegetables, milk, eggs, unprocessed meat, cereals, salt, books, newspapers, and most educational services. Alcohol for human consumption and petroleum products are kept outside GST.

How do I calculate GST on an invoice?

To add GST: GST Amount = Price × (Rate ÷ 100), Final Price = Price + GST Amount. To remove GST from an inclusive price: Base Price = Inclusive Price ÷ (1 + Rate ÷ 100), GST = Inclusive Price − Base Price.

What is Input Tax Credit (ITC) in GST?

Input Tax Credit allows businesses to deduct the GST they paid on purchases (inputs) from the GST they collected on sales. This prevents cascading taxes — you only pay GST on the value you add, not on the full sale price.

Is GST applicable on exports?

Exports are zero-rated under GST, meaning exporters charge 0% GST on exports and can claim refund of GST paid on inputs used to manufacture the exported goods. This makes Indian exports globally competitive.

Related Calculators

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Add or remove GST at any rate with our free GST calculator. Works for all tax slabs — 5%, 12%, 18%, and 28%.

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