Mera Hisab
What is GST?
GST (Goods and Services Tax) is the single indirect tax charged on most goods and services sold in India. The seller collects it from the buyer along with the price and pays it to the government.
Current GST rates
From 22 September 2025, most goods and services fall into two main rates, with a higher rate for a small group of items:
| Rate | Broadly applies to |
|---|---|
| 5% | Many everyday goods and services |
| 18% | Most other goods and services (standard rate) |
| 40% | Selected luxury and "sin" goods |
| 3% | Gold, silver and jewellery |
Many essential items are exempt (0%). A few products, such as tobacco, have special rules and may carry extra levies on top of GST. Rates for a specific product depend on its HSN/SAC code, so always confirm the rate for your item on the official CBIC GST portal.
How is GST calculated?
Adding GST (the price does not include GST):
- GST = Amount × Rate ÷ 100
- Total = Amount + GST
Example: ₹1,000 at 18% → GST = ₹180, total = ₹1,180.
Removing GST (the price already includes GST):
- Amount before GST = Price × 100 ÷ (100 + Rate)
- GST = Price − Amount before GST
Example: ₹1,180 including 18% GST → amount before GST = ₹1,000, GST = ₹180.
A common mistake is to take 18% of ₹1,180 (₹212.40). That is wrong, because the ₹1,180 already includes the tax.
CGST, SGST and IGST
- Buyer in the same state: GST is split equally into CGST (for the Centre) and SGST (for the state). At 18%, that is 9% CGST + 9% SGST.
- Buyer in another state: the full rate is charged as IGST. At 18%, that is 18% IGST.
For example, a shop in Pune selling to a customer in Nashik charges CGST + SGST; the same shop sending goods to Indore charges IGST. The total tax is the same either way; only the split changes.
Tips for shopkeepers
- Always state on quotations whether your prices include or exclude GST.
- Check the HSN/SAC code and rate for each product; rates can change after GST Council meetings.
- Dealers under the composition scheme cannot collect GST from customers, so they should not add GST to their bills.
Frequently asked questions
How do I calculate 18% GST on an amount?
Multiply the amount by 0.18. For ₹2,500, GST is ₹450 and the total is ₹2,950. Select "Add GST" above and enter the amount to see the CGST and SGST split.
How do I remove GST from a price that already includes it?
Divide the price by (1 + rate ÷ 100). For ₹590 including 18% GST: 590 ÷ 1.18 = ₹500 before GST, so the GST is ₹90. Select "Remove GST" above to do this automatically.
Is IGST higher than CGST plus SGST?
No. IGST equals CGST + SGST combined. 18% IGST is the same total tax as 9% CGST + 9% SGST.
What happened to the 12% and 28% GST slabs?
From 22 September 2025, most items in the 12% and 28% slabs moved to 5% or 18%, and a few luxury and sin goods moved to 40%. You can still type 12 or 28 in the rate box to check older bills.
Does this calculator include cess or other levies?
No. It calculates GST only. If a cess or other levy applies to your product, add it separately.