Goods and Services Tax (GST) has simplified India's indirect tax system since 2017. This guide covers everything you need to know about GST rates, calculations, and compliance.
GST Slabs in India
0% (Exempted): Fresh fruits, vegetables, milk, eggs, bread, salt, education services, healthcare
5%: Packaged food items, sugar, tea, coffee, fertilizers, medicines, railway transport
12%: Computers, mobile phones, processed food, business class air travel, hotel rooms (under ₹1,000)
18%: Most goods and services — soaps, toothpaste, electronics, telecom services, IT services, restaurant bills (AC)
28%: Luxury items — cars, motorcycles, cigarettes, alcohol, aerated drinks, 5-star hotel stays
How to Calculate GST
Use our GST Calculator for instant calculations:
GST Exclusive: GST Amount = Base Price × Rate/100
GST Inclusive: GST Amount = Total Price - (Total Price × 100/(100 + Rate))
CGST, SGST, and IGST
Intra-state sales: CGST + SGST (50% each of total GST)
Inter-state sales: IGST (full GST amount)
For example, on an ₹18% intra-state sale of ₹10,000:
- •CGST: ₹900 (9%)
- •SGST: ₹900 (9%)
- •Total GST: ₹1,800
GST Registration
Businesses with annual turnover exceeding ₹40 lakh (₹10 lakh for special category states) must register for GST. Use our GST Calculator for your billing needs.
Common GST Mistakes
1. Using wrong HSN/SAC codes
2. Not filing GST returns on time (late fee: ₹50/day)
3. Not claiming Input Tax Credit (ITC) properly
4. Confusing inclusive and exclusive pricing
Calculate GST instantly with our GST Calculator. For business profitability analysis, use our Profit Margin Calculator.
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Written by
CalcBit Editorial Team