How to use the GST calculator
- Amount — the net price when adding GST, or the inclusive total (an MRP, a receipt, an “all-inclusive” quote) when removing it.
- Country and rate — for India pick the slab and whether the supply is within a state or to another state; the other countries use one national rate; “Custom” takes any percentage.
The cards show the inclusive or exclusive amount and the GST; for India the rows split it into CGST and SGST or show IGST, and the table repeats the sum at every other slab.
India’s GST rates since 22 September 2025
The GST Council’s 56th meeting on 3 September 2025 approved the overhaul known as GST 2.0, and CBIC’s rate notifications brought it into force on 22 September 2025. The 12% and 28% slabs were abolished — most goods at 12% moved to 5%, most at 28% to 18% — and a 40% rate was created for a short list of luxury and sin goods. The special rates for bullion and precious stones were kept.
| Rate | Typical goods and services |
|---|---|
| 0% | Unpackaged food staples, UHT milk, paneer, Indian breads, individual life and health insurance policies |
| 0.25% | Rough diamonds and some other unworked precious stones |
| 3% | Gold, silver, platinum and jewellery made from them |
| 5% | Most packaged food, soap and toothpaste, medicines, footwear and clothing below the price threshold, restaurants |
| 18% | The standard rate: electronics, cement, small cars, most other goods and nearly all services |
| 40% | Luxury and sin goods: sugary aerated drinks, large cars and motorcycles above 350 cc, yachts, betting and casinos |
Cigarettes and other tobacco products keep their earlier rates plus compensation cess until the Council notifies otherwise. The rate for any item follows its HSN code (goods) or SAC code (services): check the GST portal or ask a chartered accountant when in doubt.
CGST, SGST and IGST
- Within a state: the tax is split in half — CGST to the Centre, SGST to the state (UTGST in a union territory). An 18% supply is billed as 9% + 9%.
- Between states, and on imports: the whole rate is IGST, collected by the Centre and shared with the destination state.
The customer pays the same total either way; the split decides which government gets the money and which column of the return it goes in, so the invoice must show the right one.
Adding and removing GST: the formulas
Adding (exclusive → inclusive): GST = net price × rate ÷ 100; inclusive amount = net price × (1 + rate ÷ 100) — at 18%, net price × 1.18.
Removing (inclusive → exclusive): net price = inclusive amount ÷ (1 + rate ÷ 100); GST = inclusive amount − net price. At 18% divide by 1.18, at 5% by 1.05.
The common mistake is taking 18% of the inclusive amount. GST is charged on the net price, not on the total, so that shortcut taxes the tax: on ₹1,180 it gives ₹212.40 instead of ₹180 and a net price of ₹967.60 instead of ₹1,000. The GST share of an inclusive amount is rate ÷ (100 + rate) — 18 ÷ 118, or 15.25%, at the standard rate.
Worked example: an invoice within the state
A design studio in Pune bills a client in Mumbai ₹25,000 for a brochure. Both are in Maharashtra, so the 18% service rate is split:
- Taxable value: ₹25,000
- CGST at 9%: ₹2,250.00
- SGST at 9%: ₹2,250.00
- Invoice total: ₹29,500.00
For a client in Bengaluru the invoice would show IGST at 18% = ₹4,500.00 and the same total. Had the studio quoted ₹29,500 “inclusive of GST”, the taxable value would be 29,500 ÷ 1.18 = ₹25,000 — the removal formula running backwards to the same numbers.
GST in other countries
| Country | Rate | Notes |
|---|---|---|
| India | 5% and 18% (0%, 0.25%, 3%, 40% special) | CGST + SGST within a state, IGST between states |
| Australia | 10% | Basic food, health and education are GST-free |
| New Zealand | 15% | Very few exemptions; applies to most food |
| Singapore | 9% | Raised from 8% on 1 January 2024 |
| Canada | 5% federal | Plus provincial sales tax, or a combined HST of 13–15% in some provinces |
The arithmetic is identical everywhere; only the rate and the exemptions change. For a Canadian HST province or a US state, enter the combined rate as a custom rate or use the sales tax calculator.
For businesses: input tax credit and the composition scheme
Input tax credit (ITC) makes GST a tax on value added: a registered business deducts the GST paid on purchases from the GST collected on sales and pays the difference, provided the supplier has reported the invoice. Because the tax passes through, work out margins on net amounts — the profit margin and markup calculators expect figures before GST.
The composition scheme lets small businesses with turnover up to ₹1.5 crore (₹75 lakh in some north-eastern and hill states; a separate ₹50 lakh scheme for service providers) pay a flat tax on turnover — 1% for manufacturers and traders, 5% for restaurants, 6% for eligible service providers — with simpler returns, but they cannot collect GST from customers, claim ITC or sell to other states. Rates and thresholds change with Council decisions, so confirm the current position on the CBIC or GST portal, or with a CA, before relying on this page for a return.
Frequently asked questions
How do I calculate 18% GST on an amount?
To add it, multiply by 0.18: on ₹1,000 the GST is ₹180 and the total ₹1,180. To remove it, divide the inclusive amount by 1.18 and subtract: ₹2,360 ÷ 1.18 = ₹2,000, so the GST was ₹360.
Are the 12% and 28% GST slabs gone?
Yes. From 22 September 2025 the structure is 5% and 18%, with 40% for luxury and sin goods, 3% for gold and silver, 0.25% for rough diamonds and 0% for essentials. Most items at 12% moved to 5% and most at 28% to 18%.
Does the MRP include GST?
Yes. The maximum retail price printed on packaged goods includes all taxes. To see the GST inside an MRP, choose “Remove GST” and the slab for that product.
What is the difference between CGST, SGST and IGST?
The same tax collected in different ways. A supply within one state is split into CGST (Centre) and SGST (state), half each; a supply to another state, or an import, is charged entirely as IGST. The rate and the customer’s total are identical.
Which GST rate applies to my product or service?
It depends on the HSN code of the goods or the SAC code of the service, not on the type of business. Look the code up on the GST portal or in the CBIC rate notifications, or ask a chartered accountant — the calculator applies whichever rate you choose.
Last updated: October 9, 2026