GST (Goods and Services Tax) is a unified indirect tax levied on the supply of goods and services in India. It replaced multiple taxes like VAT, Service Tax, Excise Duty, etc. GST was implemented on 1st July 2017. Major GST 2.0 reform effective September 22, 2025 โ simplified to 3 main slabs: 5%, 18%, and 40%. The 12% and 28% slabs have been abolished.
Adding GST: GST Amount = (Original Price ร GST Rate) รท 100. Total Price = Original Price + GST Amount.
Removing GST: Original Price = Total Price รท (1 + GST Rate/100). GST Amount = Total Price โ Original Price.
CGST vs SGST vs IGST
For intra-state transactions, GST is split equally between CGST (Central) and SGST (State). For inter-state transactions, only IGST (Integrated) is charged at the full rate.
GST 2.0 rates effective September 2025: 5% (essential goods โ food, medicines, basic services), 18% (standard goods and services โ electronics, restaurants, most items), 40% (luxury goods โ premium cars, tobacco, aerated drinks). Old 12% and 28% slabs abolished.
How to calculate GST?โผ
To add GST: Final price = Original price ร (1 + GST rate/100). Example: โน10,000 + 18% GST = โน10,000 ร 1.18 = โน11,800. To remove GST: Base price = Final price รท (1 + GST rate/100). Example: โน11,800 รท 1.18 = โน10,000 base.
What is CGST and SGST?โผ
For intrastate sales (within same state): GST splits into CGST (Central GST) + SGST (State GST), each at half the total rate. Example: 18% GST = 9% CGST + 9% SGST. For interstate sales: full rate as IGST (Integrated GST). Our calculator shows both splits automatically.