Question 1

What is GST?

Accepted Answer

GST (Goods and Services Tax) is a unified indirect tax levied on the supply of goods and services in India, replacing a patchwork of earlier taxes like VAT, service tax, and excise duty. It is collected at every stage of production or sale, with credit for taxes already paid at earlier stages, so only the value added at each stage is taxed.

Question 2

What is the difference between CGST, SGST, and IGST?

Accepted Answer

For transactions within the same state (intra-state), the GST is split equally into CGST (Central GST, collected by the Centre) and SGST (State GST, collected by the state). For transactions between two states (inter-state), IGST (Integrated GST) is charged instead, and the Centre later distributes the state portion to the destination state. For example, on an 18% intra-state sale you pay 9% CGST + 9% SGST; on an inter-state sale you pay 18% IGST.

Question 3

How do I extract GST from an inclusive price?

Accepted Answer

If the price already includes GST, the base price is: Amount x 100 / (100 + GST rate). So for ₹1,180 inclusive of 18% GST, the base price is ₹1,180 x 100 / 118 = ₹1,000, and the GST component is ₹180. Use the "Extract GST" mode in this calculator to do it automatically.

Question 4

What are the GST rates in India?

Accepted Answer

India has four main GST rate slabs: 5% (essential goods and services such as packaged food, transport), 12% (processed food, computers, business-class air travel), 18% (most services, electronics, restaurants), and 28% (luxury goods, cars, tobacco). Some items like fresh produce, milk, and healthcare are exempt (0%).

GST Calculator

Frequently asked questions

GST Calculator

Frequently asked questions