GST Calculator

🧮 What is GST and How Does This Calculator Work?

GST (Goods and Services Tax) is India's comprehensive indirect tax levied on the supply of goods and services. Implemented on July 1, 2017, GST replaced multiple cascading taxes like VAT, Service Tax, Excise Duty, and others, creating a unified tax structure across the nation. Our GST Calculator helps you instantly compute tax amounts, whether you need to add GST to a base price (exclusive) or extract GST from a final price (inclusive).

The calculator supports all standard GST rates in India—0%, 5%, 12%, 18%, and 28%—along with custom rates for specialized items. It automatically calculates CGST (Central GST) and SGST (State GST) for intrastate transactions, or IGST (Integrated GST) for interstate supplies.

💡 Types of GST in India

India's GST structure comprises three components based on the nature of transactions:

• CGST (Central GST): Collected by the Central Government on intrastate supplies (within the same state). For example, on an 18% GST transaction in Delhi-to-Delhi sales, 9% goes to CGST.
• SGST (State GST): Collected by the State Government on intrastate supplies. The remaining 9% in the above example goes to SGST.
• IGST (Integrated GST): Applied on interstate supplies (between different states) and imports. The entire tax is collected by the Central Government, which later settles accounts with states. Example: Goods sold from Mumbai to Delhi attract 18% IGST.
• UGST (Union Territory GST): Applicable in Union Territories without legislature, replacing SGST. Functions identically to SGST for UTs like Andaman & Nicobar, Lakshadweep, etc.

💡 GST Rate Slabs in India

GST rates are categorized into five slabs to balance revenue collection with affordability:

• 0% GST (Nil Rated): Essential items like fresh fruits, vegetables, milk, bread, eggs, cereals, salt, jaggery, and educational services remain exempt to keep necessities affordable.
• 5% GST: Applies to essential goods and mass consumption items—edible oils, sugar, tea, coffee, household fuels (coal, LPG), medicines, and transport services like railways.
• 12% GST: Standard rate for items like frozen meats, processed foods, mobile phones, computers, and business-class air travel.
• 18% GST: The most common rate, covering services (IT, consulting, financial), branded garments, soaps, toothpaste, and industrial intermediates.
• 28% GST: Luxury and demerit goods—automobiles, high-end consumer electronics, tobacco products, aerated drinks, cement, and luxury services. Some items in this slab also attract additional cess.

Special Rates: Items like gold (3%), rough diamonds (0.25%), and some textiles may have unique rates. Always verify the applicable HSN/SAC code for specific goods/services.

📐 How to Calculate GST: Formulas Explained

Our calculator uses these standard formulas based on your selection:

GST Exclusive Calculation (Add GST to Base Price)

When you have the base price and need to calculate the final invoice value including GST:

• GST Amount = Base Price × (GST Rate / 100)
• Final Price = Base Price + GST Amount
• CGST = GST Amount / 2 (for intrastate)
• SGST = GST Amount / 2 (for intrastate)

Example: Product costs ₹10,000 (exclusive), GST @ 18%
GST Amount = 10,000 × 0.18 = ₹1,800
CGST = ₹900, SGST = ₹900
Invoice Value = ₹11,800

GST Inclusive Calculation (Extract GST from Final Price)

When you have the final MRP/invoice amount and need to find the base price and GST component:

• Base Price = Final Price / (1 + GST Rate / 100)
• GST Amount = Final Price - Base Price
• CGST = GST Amount / 2 (for intrastate)
• SGST = GST Amount / 2 (for intrastate)

Example: MRP is ₹11,800 (inclusive of 18% GST)
Base Price = 11,800 / 1.18 = ₹10,000
GST Amount = ₹1,800
CGST = ₹900, SGST = ₹900

💡 Input Tax Credit (ITC): The Core Benefit of GST

Input Tax Credit is GST's most transformative feature, eliminating the "tax on tax" problem that plagued India's old indirect tax system. ITC allows businesses to claim credit for GST paid on purchases (inputs) against GST collected on sales (outputs), ensuring tax is only paid on value addition.

How ITC Works: A Practical Example

Let's trace a product through the supply chain to understand ITC:

• Manufacturer: Buys raw materials worth ₹1,00,000 + 18% GST (₹18,000). Sells finished goods for ₹2,00,000 + 18% GST (₹36,000).
  GST Payable: ₹36,000 (collected) - ₹18,000 (ITC on inputs) = ₹18,000
• Wholesaler: Buys from manufacturer for ₹2,00,000 + ₹36,000 GST. Sells to retailer for ₹2,50,000 + 18% GST (₹45,000).
  GST Payable: ₹45,000 - ₹36,000 (ITC) = ₹9,000
• Retailer: Buys from wholesaler for ₹2,50,000 + ₹45,000 GST. Sells to customer for ₹3,00,000 + 18% GST (₹54,000).
  GST Payable: ₹54,000 - ₹45,000 (ITC) = ₹9,000

Key Insight: Total tax to government = ₹18,000 + ₹9,000 + ₹9,000 = ₹36,000, which equals 18% of the final value addition (₹2,00,000). Without ITC, each entity would pay full GST, causing cascading taxes.

ITC Eligibility Conditions

To claim ITC, businesses must satisfy these conditions:

1. Valid Tax Invoice: You must possess a proper GST invoice from a registered supplier showing GSTIN and tax breakup.
2. Goods/Services Received: ITC can only be claimed once goods are received or services are rendered. Part delivery allows proportionate ITC.
3. Tax Paid to Government: Supplier must have deposited the collected GST to the government. If a supplier defaults, ITC may be reversed.
4. Return Filed: ITC is auto-populated from GSTR-2B. You must file GSTR-3B timely to claim credit.
5. Used for Business: ITC is not available for personal use, blocked items (motor vehicles for personal use, food/beverages, club memberships), or exempt supplies.

Blocked ITC Items

Section 17(5) of the CGST Act blocks ITC on certain items even if used for business:

• Motor vehicles and aircraft (except when used for taxable supply of transportation, training, or dealer sales)
• Food, beverages, outdoor catering, beauty treatment, health services, cosmetic/plastic surgery (except when outward supply is of the same category)
• Membership of clubs, health/fitness centers
• Travel benefits to employees on vacation (like LTC)
• Works contract services for construction of immovable property (except plant & machinery)
• Goods/services for personal consumption of employees

💡 GST Registration: When and How to Register

GST registration is mandatory or optional based on business turnover and type:

Mandatory Registration Thresholds

• Regular Businesses (Goods): Turnover exceeds ₹40 lakh in a financial year (₹20 lakh for special category states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, Himachal Pradesh)
• Service Providers: Turnover exceeds ₹20 lakh (₹10 lakh for special category states)
• Interstate Supply: Mandatory registration irrespective of turnover if supplying across state borders
• E-commerce Sellers: All sellers on e-commerce platforms must register, even below threshold
• Casual Taxable Persons: Businesses operating temporarily in a state (exhibitions, fairs)
• Reverse Charge Mechanism: Recipients paying tax on behalf of unregistered suppliers must register
• Input Service Distributors: Entities distributing ITC to branches/units

GST Registration Process (Step-by-Step)

1. Visit GST Portal: Go to www.gst.gov.in and click "Register Now" under "Taxpayers" section
2. OTP Verification: Enter PAN, mobile number, and email. Verify OTP received on both
3. TRN Generation: Temporary Reference Number (TRN) is generated for tracking your application
4. Part B Application: Log in using TRN, fill business details—trade name, address, bank account, authorized signatory, HSN codes of top products
5. Document Upload: Upload PAN card, Aadhaar, photographs, address proof (electricity bill/rent agreement), bank statement/cancelled cheque, incorporation certificate (for companies), authorization letter for signatory
6. Verification: Digitally sign using DSC (for companies/LLPs) or e-sign using Aadhaar OTP (for proprietors/partnerships)
7. ARN Generation: Application Reference Number (ARN) is issued. Track status on portal
8. GSTIN Issued: Once approved (typically 3-7 working days), 15-digit GSTIN is allotted. Download GST certificate

Composition Scheme: Simplified GST for Small Businesses

Small businesses with turnover up to ₹1.5 crore can opt for the Composition Scheme:

• Tax Rates: 1% for traders, 2% for manufacturers, 6% for restaurants (no ITC)
• Benefits: Reduced compliance—file quarterly returns (GSTR-4), no detailed invoicing, lower tax rates
• Restrictions: Cannot claim ITC, cannot supply interstate, cannot sell goods online (except own website), restricted from supplying exempt/non-taxable goods

💡 Practical GST Tips for Businesses

1. Always Collect Proper Invoices: Ensure suppliers provide GST-compliant invoices with GSTIN, HSN/SAC codes, and clear tax breakup. Missing details can block ITC.
2. Match ITC Before Filing: Reconcile your purchase register with GSTR-2B (auto-populated statement) every month before filing GSTR-3B. Mismatches can lead to ITC reversals.
3. Monitor Supplier Compliance: Use the GST portal to verify if suppliers have filed returns. If they don't deposit tax, your ITC may be reversed retroactively.
4. File Returns Timely: Late filing attracts interest @ 18% p.a. on unpaid tax plus late fees (₹50/day for nil returns, ₹100/day CGST + ₹100/day SGST for returns with tax).
5. Maintain Digital Records: Keep all invoices, bills, bank statements, and GST returns for at least 6 years. Digital records with backups are recommended.
6. Use HSN/SAC Codes Correctly: Incorrect classification can lead to wrong tax rates and penalties. For example, milk-based ice cream (HSN 2105) is 18%, while non-milk ice cream (HSN 2105) is 18%, but kulfi (HSN 2105) can be 5% if classified as dairy product.
7. Understand Place of Supply: Determine if a transaction is intrastate (CGST+SGST) or interstate (IGST). Incorrectly claiming CGST+SGST on an interstate supply leads to interest and penalties.
8. Claim ITC in Same Month: While you can claim ITC until September of next financial year or GSTR-3B filing (whichever is earlier), claiming in the same month improves cash flow.