Contents
- 1 GST Calculator — Add or Remove GST Instantly
- 1.1 Visual Breakdown
- 1.2 How to Use the GST Calculator
- 1.3 What is GST (Goods & Services Tax)?
- 1.4 GST Slab Rates — A Quick Reference
- 1.5 Worked Examples
- 1.6 Input Tax Credit (ITC) — How GST Avoids Cascading
- 1.7 GST Registration — Who Needs To Register
- 1.8 Common GST Mistakes
- 1.9 Frequently Asked Questions
- 1.10 Explore More Tools
GST Calculator — Add or Remove GST Instantly
Calculate Goods & Services Tax on any amount in seconds. Toggle Add/Remove GST, choose between 0%, 5%, 12%, 18%, 28% slabs (and special rates), with CGST+SGST or IGST breakdown.
Visual Breakdown
How to Use the GST Calculator
- Enter the Amount: The number can be exclusive (pre-GST) or inclusive (post-GST) — choose the mode below.
- Select GST Rate: Pick from the standard slabs — 0%, 5%, 12%, 18%, 28% — or the special rates of 0.25% (diamonds) and 3% (precious metals).
- Choose Add or Remove Mode: “Add GST” computes tax on top of a pre-GST amount. “Remove GST” extracts tax from a GST-inclusive amount.
- Select Transaction Type: Intra-state (same state) splits the tax 50:50 into CGST + SGST. Inter-state (different states) shows it as one IGST amount.
What is GST (Goods & Services Tax)?
GST is India’s unified indirect tax on the supply of goods and services. Introduced on 1 July 2017, it replaced 17+ central and state-level indirect taxes (VAT, Service Tax, Excise, Octroi, Entry Tax, etc.) with one nation-wide framework. GST is governed by the GST Act 2017 (Central + State + UT legislations) and administered by the GST Council, which sets rates and policy.
GST Components
- CGST (Central GST): Charged by Central Govt on intra-state supplies.
- SGST/UTGST (State/UT GST): Charged by State/UT Govt on intra-state supplies.
- IGST (Integrated GST): Charged by Central Govt on inter-state supplies. Centre later distributes the state’s share.
- Compensation Cess: Extra levy on luxury / sin items (tobacco, aerated drinks, big cars). Goes to state-compensation fund.
The Formula
Adding GST: GST Amount = Net × GST Rate / 100. Total = Net + GST. Removing GST: GST Amount = Inclusive × (Rate / (100 + Rate)). Net = Inclusive − GST. Intra-State split: CGST = SGST = GST Amount / 2. Inter-State: IGST = full GST amount.
GST Slab Rates — A Quick Reference
| Slab | Categories | Examples |
|---|---|---|
| 0% (Exempt) | Essential daily needs | Fresh fruits, milk, salt, books, newspapers, education services, healthcare |
| 0.25% | Special — rough diamonds | Unpolished diamonds, precious stones (rough) |
| 3% | Precious metals & jewellery | Gold, silver, platinum, jewellery |
| 5% | Mass consumption | Packaged food, edible oils, sugar, tea, coffee, footwear under ₹1,000, transport services, economy air travel, restaurants (small) |
| 12% | Standard processed goods | Butter, cheese, ghee, business class air travel, mobile phones, processed food, frozen meat |
| 18% | Most goods & services | Hair oil, soaps, toothpaste, AC restaurants, telecom, IT services, banking, insurance, footwear above ₹1,000 |
| 28% (+ Cess) | Luxury & sin items | Cars, ACs, refrigerators, washing machines, aerated drinks, tobacco, cement, motorcycles > 350cc, yachts |
Worked Examples
Example 1: Adding GST on a Pre-Tax Invoice
You issue an invoice for ₹50,000 (your service fee). GST rate: 18%. GST = 50,000 × 18/100 = ₹9,000. Total invoice = ₹59,000. If intra-state (same state as buyer): CGST ₹4,500 + SGST ₹4,500. If inter-state: IGST ₹9,000.
Example 2: Removing GST from MRP
You buy electronics for ₹14,750 inclusive of GST. Rate: 18%. GST = 14,750 × (18/118) = ₹2,250. Net price = ₹12,500. If the seller shows ₹14,750 + GST extra in the invoice, that’s wrong — typical MRP is already inclusive.
Example 3: Restaurant Bill
Restaurant (non-AC, takeaway, turnover < ₹7.5 cr) bill: ₹2,000 before tax. GST rate: 5%. GST = ₹100 (₹50 CGST + ₹50 SGST). Total: ₹2,100. AC restaurants charge 18% GST; restaurants in 5-star hotels charge 18% on F&B.
Example 4: Inter-State Service Provision
Bengaluru consultant invoices Mumbai client for ₹1,00,000 service. GST = ₹18,000 IGST (single component). Bengaluru consultant deposits IGST to Centre. Mumbai client claims ITC on this IGST.
Input Tax Credit (ITC) — How GST Avoids Cascading
The single biggest advantage of GST over the old tax system: you pay GST on the value you ADD, not the entire price. Manufacturers and service providers can claim Input Tax Credit on GST paid for their own purchases.
| Stage | Value Added (₹) | Sale Price (₹) | GST @ 18% | ITC Claimed | Net GST Paid |
|---|---|---|---|---|---|
| Raw Material Supplier | 100 | 100 | 18 | 0 | 18 |
| Manufacturer | 50 | 150 | 27 | 18 | 9 |
| Wholesaler | 30 | 180 | 32.40 | 27 | 5.40 |
| Retailer | 20 | 200 | 36 | 32.40 | 3.60 |
| Total GST | 36 (= 18% of ₹200) |
Each stage pays GST only on its value addition. The final consumer bears the entire GST. This is the “value-added tax” principle that makes GST efficient.
GST Registration — Who Needs To Register
- Service Providers: Annual aggregate turnover > ₹20 lakh (₹10 lakh for special states).
- Goods Suppliers: Annual aggregate turnover > ₹40 lakh (₹20 lakh for special states).
- E-commerce Operators: Mandatory regardless of turnover.
- Inter-State Suppliers: Mandatory regardless of turnover.
- Casual Taxable Persons: Mandatory.
- Reverse Charge Receivers: Mandatory.
Voluntary registration (below threshold) is also allowed and lets you claim ITC, making B2B operations smoother. Once registered, monthly/quarterly returns (GSTR-1, GSTR-3B) and annual return (GSTR-9) are mandatory.
Common GST Mistakes
- Wrong rate applied: Always check the HSN code (for goods) or SAC code (for services) — rates are notified against these codes.
- Missing the CGST+SGST split: For intra-state, ALWAYS show both components separately on the invoice.
- Forgetting Reverse Charge: Some services (legal, certain transportation) require the BUYER to deposit GST instead of the seller.
- Late filing: GSTR-1 (10th), GSTR-3B (20th) — late filing attracts ₹50/day late fee per return (₹20 for nil) plus 18% interest.
- Incorrect ITC claim: Only claim ITC on invoices that have appeared in your GSTR-2B. Mismatches trigger demand notice.
- Forgetting e-Way Bill: Goods worth above ₹50,000 require e-Way Bill for inter-state movement.
Frequently Asked Questions
What is the difference between CGST, SGST, and IGST?
CGST and SGST are collected on INTRA-state supplies (within the same state) and split 50:50. IGST is collected on INTER-state supplies and goes entirely to the Centre, which later distributes the state’s share.
When do I add GST vs remove it?
Add GST when your amount is the base price (e.g., ₹10,000 + 18% GST = ₹11,800). Remove GST when your amount already includes tax (e.g., MRP of ₹11,800 — extract ₹1,800 GST and ₹10,000 net).
Which GST slab applies to my business?
Search the CBIC’s HSN/SAC database for your product/service code. Common: most services = 18%, mobile phones = 12%, footwear above ₹1,000 = 18%, restaurants (non-AC) = 5%, restaurants (AC) = 18%, hotels (₹1,000-7,500) = 12%.
Can I claim ITC on personal purchases?
No — ITC is only available for business purchases, and only if you’re registered. Personal use, motor vehicles (with exceptions), food/beverage for staff, club memberships — all are blocked credits under Section 17(5).
What is Reverse Charge Mechanism (RCM)?
RCM shifts GST liability from supplier to recipient. Applies to: legal services from advocates, freight from GTA, services from unregistered suppliers (above ₹5K/day), import of services. The recipient pays GST and can claim ITC.
What is the composition scheme?
Simplified scheme for small businesses (turnover up to ₹1.5 cr for goods, ₹50 lakh for services). Pay tax at flat rates (1% for manufacturers/traders, 5% for restaurants, 6% for services). Cannot claim ITC, cannot make inter-state supplies, cannot issue tax invoices.
Is GST applicable on exports?
Exports are zero-rated. You can either pay GST and claim refund, or export under LUT/Bond without GST. Either way, exporters get full ITC refund on input GST.
What is e-invoicing?
Mandatory electronic generation of invoices via Invoice Registration Portal (IRP). Currently mandatory for businesses with turnover > ₹5 crore. The IRP returns a unique IRN and QR code that must appear on the invoice.
How are GST refunds processed?
File RFD-01 within 2 years of relevant date. Common refund cases: excess balance in cash ledger, exports, deemed exports, accumulated ITC due to inverted duty structure. Refunds are usually processed within 60 days; provisional refund of 90% in 7 days for exports.
What happens if I don’t file GST returns?
Late fee: ₹50/day per return (₹20/day for nil) capped at ₹5,000. Interest: 18% per annum on tax payable. After 6 months of non-filing, GST registration is suspended/cancelled. Continued non-filing can lead to assessment by GST officer with best judgement.