GST Calculator

GST (Goods and Services Tax) is a unified indirect tax on the supply of goods and services across India, effective from 1 July 2017. It replaced multiple taxes like VAT, service tax, excise duty, and entry tax. GST is a destination-based tax — collected at the point of consumption.

CGST (Central GST) and SGST (State GST) are charged on intra-state transactions (within the same state). Both are 50% of the total GST rate. Example: 18% GST = 9% CGST + 9% SGST. IGST (Integrated GST) is charged on inter-state transactions (goods/services moving from one state to another). It equals the full GST rate (18% IGST). The government then distributes IGST between the Centre and the destination state.

Use the 'Add GST' mode in the calculator above. Formula: GST Amount = Base Price × GST Rate / 100. Total Price = Base Price + GST Amount. Example: Base price ₹1,000, GST rate 18% → GST = ₹180 → Total = ₹1,180.

Use the 'Remove GST' mode in the calculator above. Formula: Base Price = Total Price / (1 + GST Rate/100). GST Amount = Total Price – Base Price. Example: Total price ₹1,180 inclusive of 18% GST → Base price = 1180/1.18 = ₹1,000 → GST = ₹180.

Most services in India attract 18% GST. This includes: IT services, consulting, banking charges, insurance, restaurants (non-AC), hotels, telecom, and most professional services. Exceptions: Healthcare and education services are exempt (0%). Air travel (economy) is 5%. Financial services like insurance vary.

Non-AC restaurants: 5% GST (no input tax credit). AC restaurants and restaurants in hotels with room tariff above ₹7,500: 18% GST. Takeaway / delivery: 5% GST. Starred hotels and luxury restaurants: 18% GST. Tip: Always check if the restaurant has air conditioning — that determines the GST rate.

HSN (Harmonized System of Nomenclature) is an international system for classifying goods under GST. Every product has a specific HSN code that determines its GST rate. Businesses with turnover above ₹5 crore must mention 6-digit HSN codes on invoices. Smaller businesses need 4-digit codes.

Mandatory GST registration if: Annual turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services). Supply of goods/services across state boundaries (even with lower turnover). E-commerce sellers (regardless of turnover). Importers and exporters. Voluntary registration is possible below these thresholds — allows you to claim input tax credit.

ITC allows businesses to deduct the GST they paid on purchases (inputs) from the GST they collect on sales (output). Example: You buy raw materials paying ₹18,000 GST. You sell finished goods collecting ₹30,000 GST. Net GST payable = ₹30,000 – ₹18,000 = ₹12,000. This eliminates the cascading effect of taxes (tax on tax).

Home loan EMIs are NOT subject to GST. However, the processing fee charged by the bank attracts 18% GST. Example: Processing fee ₹10,000 + 18% GST = ₹11,800 total. The interest component of EMI is exempt from GST.