What Is GST — and How Do You Calculate It Correctly?
Goods and Services Tax (GST) is India’s unified indirect tax that replaced Central Excise, Service Tax, VAT, and dozens of other levies on 1 July 2017. GST is a destination-based tax — levied at the point of consumption. When a business sells to another business (B2B), the buyer claims an Input Tax Credit (ITC) for the GST paid, so the tax is ultimately borne only by the end consumer.
India operates a dual GST structure: for intra-state transactions, the tax splits equally into CGST (Central) and SGST (State). For inter-state transactions, a single IGST applies. So an 18% GST bill in Tamil Nadu for a product sold within the state means 9% CGST + 9% SGST on your invoice.
The Two Calculations You Need
Adding GST: You know the base price (ex-GST) and need the total. Formula: GST = Base × Rate ÷ 100. Total = Base + GST. Example: ₹10,000 at 18% → GST ₹1,800 → Total ₹11,800.
Removing GST (reverse calculation): You only have the GST-inclusive price. The formula most people get wrong: GST = Total × Rate ÷ (100 + Rate). Base = Total − GST. Example: ₹11,800 at 18% → GST = 11,800 × 18 ÷ 118 = ₹1,800. Base = ₹10,000. Using Total × Rate ÷ 100 gives ₹2,124 — a ₹324 error. This calculator handles both modes correctly. Also see our EMI Calculator and FD Calculator.
GST Rate Slabs — Which Applies?
India has four primary slabs: 5% (essential goods, economy services), 12% (processed foods, branded clothing), 18% (the most common — restaurants, electronics, financial services, construction), and 28% (luxury and sin goods: automobiles, tobacco, aerated drinks). Some items are 0% (fresh produce, healthcare, education). Check the official HSN/SAC classification on www.gst.gov.in for your specific product.
Calculate GST — Add or Remove
Enter the amount, select a GST rate and choose whether to add GST or extract it from an inclusive price
GST Breakdown Summary
GST at Different Rates
Amount Breakdown
Full Tax Details
Restaurant — Dine-In
Meal base price ₹2,400. AC restaurant with ITC: 18% GST. CGST ₹216 + SGST ₹216 = Total ₹2,832. Non-AC restaurant without ITC: 5%. CGST ₹60 + SGST ₹60 = Total ₹2,520.
5% or 18%Electronics — Laptop (Reverse)
Laptop ₹85,000 GST-inclusive at 18%. Reverse calc: Base = 85,000 × 100 ÷ 118 = ₹72,034. GST = ₹12,966. CGST ₹6,483 + SGST ₹6,483. Business buyer claims ₹12,966 ITC.
18% | ITC claimableAutomobile — New Car
Hatchback ex-showroom ₹7,50,000. Small petrol car: 28% GST + 1% cess. GST = ₹2,10,000. Cess = ₹7,500. Ex-showroom total = ₹9,67,500.
28% + cessHealthcare — Hospital Bill
Inpatient treatment ₹45,000. Hospital services (room, doctor fees, in-house medicines) are GST-exempt — 0%. Patient pays ₹45,000 total. Diagnostic labs: 5% GST applies.
0% — healthcare exemptConstruction — Flat Purchase
Under-construction flat ₹60,00,000. 5% GST (no ITC) = ₹3,00,000. Ready-to-move with OC: 0% GST. Stamp duty and registration are outside GST.
5% (under-construction only)E-Commerce — Inter-State Sale
Seller charges ₹1,180 (18% GST-inclusive). Base = ₹1,000, GST = ₹180. Inter-state sale → IGST ₹180 (not split). Platform collects 1% TCS on net value.
IGST for inter-state5 Common GST Mistakes That Cost Businesses Money
Frequently Asked Questions
Common questions about GST calculation, rates, CGST/SGST and compliance