Instantly calculate GST amount, CGST, SGST, and total price for any slab - add or remove GST with a single click.
Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based indirect tax that was introduced in India on 1st July 2017. It replaced a complex web of central and state taxes including excise duty, service tax, VAT, entertainment tax, and octroi. GST is levied on the supply of goods and services across India, making it a single unified tax system that has significantly simplified indirect taxation.
GST follows a dual structure - taxes are split between the central government and the state government. For intra-state transactions, both CGST (Central GST) and SGST (State GST) are levied. For inter-state transactions, IGST (Integrated GST, which is a combination of CGST and SGST) is levied by the central government.
GST is levied at five main rates in India, with most goods and services falling under one of these categories:
There are two common scenarios for GST calculation:
Adding GST to a price (Exclusive):
GST Amount = Original Price x GST Rate / 100
Total Price = Original Price + GST Amount
Removing GST from a price (Inclusive):
GST Amount = Total Price - (Total Price x 100 / (100 + GST Rate))
Original Price = Total Price - GST Amount
CGST = SGST = GST Amount / 2
GST-Exclusive pricing means the listed price does not include GST - GST is added on top when invoicing. This is common in B2B transactions. GST-Inclusive pricing means the listed price already includes GST - common in retail and B2C transactions (MRP on products). Use the toggle on this calculator to switch between both modes instantly.
One of the most powerful features of GST is the Input Tax Credit mechanism. Businesses registered under GST can claim credit for the GST paid on purchases (inputs) and offset it against the GST collected on sales (output tax). This eliminates the cascading effect of tax-on-tax that existed under the pre-GST regime and reduces the overall tax burden in the supply chain.