How This Is Calculated
GST can be calculated two ways: adding GST to a base amount ("exclusive"), or extracting the embedded GST from a GST-inclusive total ("inclusive") using tax/(1+rate). For intra-state supplies, the GST amount splits equally into CGST and SGST; for inter-state supplies, the full amount is charged as IGST. Common GST slabs in India are 5%, 12%, 18% and 28%, with some goods attracting additional compensation cess.
What is the difference between GST-inclusive and GST-exclusive amount?
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A GST-exclusive amount is the base price before tax is added — GST is calculated on top of it. A GST-inclusive amount already has tax built in, so the GST portion has to be extracted from the total using the formula: GST = total − total/(1+rate).
When do I charge CGST + SGST versus IGST?
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CGST (Central GST) and SGST (State GST) apply in equal halves for intra-state supplies, where the supplier and the place of supply are in the same state. IGST (Integrated GST) applies as a single tax for inter-state supplies, where the supplier and place of supply are in different states, or for imports/exports.
What are the common GST rate slabs in India?
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The most common GST slabs are 5%, 12%, 18% and 28%, with certain essential goods at 0% (nil-rated) and some luxury/sin goods attracting an additional compensation cess on top of the 28% slab. The applicable rate depends on the HSN/SAC classification of the goods or service.
How do I calculate GST on an MRP that already includes tax?
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Since MRP is GST-inclusive, use the inclusive method: taxable value = MRP ÷ (1 + GST rate), and GST amount = MRP − taxable value. Switch the calculator to "inclusive" mode and enter the MRP as the amount.