What is GST?
Goods and Services Tax (GST) is the indirect tax levied on the supply of goods and services in India, replacing a complex web of older taxes (VAT, service tax, excise duty) since July 2017. Most countries with a value-added tax system call it VAT; India calls it GST.
The Five GST Slabs
Indian GST rates fall into a few standard tiers. The tier depends on the type of product or service:
- 0%: Essential food items (fresh fruit, vegetables, milk), books, healthcare
- 5%: Common household goods (sugar, tea, edible oils), economy transport
- 12%: Processed food, mobile phones, computers
- 18%: Most services, electronics, household appliances (the most common slab)
- 28%: Luxury items (cars, premium cosmetics, tobacco)
The GST Formula
To add GST to a base price:
Total = Base × (1 + GST % ÷ 100)
To extract GST from a tax-inclusive price:
Base = Total ÷ (1 + GST % ÷ 100)
CGST, SGST, and IGST: What's the Difference?
Indian GST is split between the Central and State governments. The way it's split depends on whether the transaction is within the state (intra-state) or across states (inter-state):
- Intra-state (e.g. Mumbai → Pune, both in Maharashtra): Total GST is split equally between CGST (Central GST) and SGST (State GST). For 18% GST: 9% CGST + 9% SGST.
- Inter-state (e.g. Mumbai → Bangalore): The full amount is collected as IGST (Integrated GST), which is later distributed between the central and the destination state government.
This calculator shows the CGST + SGST split (intra-state) for completeness. For inter-state transactions, the full GST amount is the IGST.
Frequently Asked Questions
Is the price on a restaurant bill including GST?
By law, all displayed prices to consumers in India must be GST-inclusive. Use the "Extract" mode of this calculator to figure out how much of your bill is the actual food cost vs the tax.
Why does my electricity bill say "no GST"?
Electricity supplied for domestic and certain industrial use is currently exempt from GST in India. So are basic education, healthcare, and many financial services.
What about GST on imports?
Imports are charged IGST in addition to customs duty. The calculator above gives you the GST portion; customs duty is separate and varies by HSN code.