What is GST in India?
The Goods and Services Tax (GST) was introduced in India on July 1, 2017, replacing multiple indirect taxes. It is a unified tax levied on the supply of goods and services across India.
GST Slabs in India (2025)
- 0%: Essential items โ raw food, books, health services
- 5%: Basic necessities โ packaged food, domestic LPG, economy hotels
- 12%: Standard goods โ butter, cheese, mobile phones, processed food
- 18%: Most common โ restaurants, financial services, electronics, IT services
- 28%: Luxury items โ cars, tobacco, aerated drinks, high-end hotels
Additionally, there's a 3% GST on gold and jewellery.
How to Add GST to a Price (GST-Exclusive Calculation)
If you know the base price (excluding GST) and want to find the final price:
Final Price = Base Price + GST Amount
Example: Software subscription costs โน10,000 (excluding GST). GST rate is 18%.
- GST Amount = โน10,000 ร 0.18 = โน1,800
- Final Price = โน10,000 + โน1,800 = โน11,800
How to Remove GST from MRP (GST-Inclusive Calculation)
If you have an MRP that already includes GST and want to find the base price:
GST Amount = MRP โ Base Price
Example: A restaurant bill is โน944 (inclusive of 18% GST).
- Base Price = โน944 / 1.18 = โน800
- GST Amount = โน944 โ โน800 = โน144
GST for Businesses: CGST, SGST, and IGST
GST in India is divided into three types:
- CGST (Central GST): Goes to the central government
- SGST (State GST): Goes to the state government
- IGST (Integrated GST): Applied on inter-state transactions
For an intra-state B2B transaction with 18% GST: CGST = 9% + SGST = 9%. For inter-state: IGST = 18%.
Common GST Calculation Mistakes to Avoid
- Confusing GST-inclusive and GST-exclusive prices
- Applying the wrong GST slab for a product/service
- Not accounting for both CGST and SGST in B2B invoices
- Forgetting Input Tax Credit (ITC) on business purchases
Use the Free GST Calculator
Skip the manual math โ use the ToolDost GST Calculator. Simply enter the price and select the GST rate. The tool instantly shows:
- GST amount
- Price before GST (base price)
- Price after GST (final price)
- CGST and SGST breakdown
Frequently Asked Questions
Is GST applied on the discounted price?
Yes, GST is applied on the discounted selling price, not the original MRP, for most goods.
Who collects GST?
The seller collects GST from the buyer and deposits it with the government. Businesses with turnover above โน20 lakh (โน10 lakh for special category states) must register for GST.
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