Calculate Goods & Services Tax
Goods and Services Tax (GST) is a unified indirect tax that replaced a complicated web of central and state taxes in India in July 2017. It applies to the supply of goods and services across the country and is structured as a destination-based tax — meaning the tax goes to the state where the goods or services are consumed, not where they are produced.
GST is collected at every stage of the supply chain — from manufacturer to wholesaler to retailer — but businesses can claim a credit for the tax paid at earlier stages. This system, called the Input Tax Credit (ITC), prevents double taxation and keeps the overall tax burden manageable.
For consumers and business owners, the practical question is simpler: how much GST do I pay on this transaction? That is exactly what this calculator answers.
Essential goods and basic necessities fall here. Examples:
Standard goods and some services. Examples:
The most common rate for services and many products. Examples:
Luxury goods and demerit goods. Examples:
Zero-rated items (0% GST): Fresh vegetables and fruits, milk, eggs, bread, education services, healthcare services, and certain agricultural products are either exempt from GST or taxed at 0%.
Use this when you have an exclusive price (before tax) and need to find the final customer-facing price.
Example: A product costs ₹1,000 before GST. At 18%, the GST is ₹180. Customer pays ₹1,180 total.
This is the view that sellers and manufacturers use when pricing products.
Use this when you have the inclusive price (the total amount already including tax) and need to know the base price and the GST component.
Example: You paid ₹1,180. At 18% GST, the base price was ₹1,000 and the GST portion was ₹180.
This is the view that accountants and buyers use for expense reporting and tax claims.
Most services in India are taxed at 18% GST, which is the standard rate for IT services, telecommunications, consultancy, financial services, and most professional services. However, there are important exceptions. Healthcare and education services are exempt from GST. Restaurant services in non-AC outlets are taxed at 5%. Transport services may attract 5% or 18% depending on the type. Always verify the specific GST rate for your service category on the official GST portal or consult a CA.
Yes. GST-registered businesses can claim Input Tax Credit (ITC) for the GST paid on business purchases and expenses. This credit offsets the GST you collect from your customers, so you only remit the difference to the government. For example, if you paid ₹5,000 GST on supplies and collected ₹8,000 GST from customers, you only pay ₹3,000 to the government. The ITC system is what makes GST more efficient than the old tax system it replaced.
GST in India is split into three components. CGST (Central GST) goes to the central government. SGST (State GST) goes to the state government. For transactions within one state, both CGST and SGST are charged, each at half the total GST rate. So for an 18% GST transaction within Maharashtra, you pay 9% CGST and 9% SGST. For transactions between states, IGST (Integrated GST) is charged at the full rate and is later shared between the central and destination state governments.
Businesses with an annual turnover above ₹40 lakhs for goods or ₹20 lakhs for services (₹10 lakhs in special category states) must mandatorily register for GST. Certain categories must register regardless of turnover — including e-commerce sellers, businesses making inter-state supplies, and casual taxable persons. Voluntary registration is available for smaller businesses who want to claim Input Tax Credit or appear more professional to larger clients.
Before GST, India had multiple overlapping taxes — central excise duty, service tax, VAT, octroi, and more. Businesses faced a "tax on tax" problem where taxes were levied on a price that already included previous taxes. GST replaced all of these with a single unified tax that applies only to the value added at each stage of the supply chain. This eliminated cascading taxation, reduced compliance costs, created a common national market, and made India's tax system far more transparent and efficient.
Charging the wrong GST rate creates problems for both you and your customers. If you charge too little, you are liable for the shortfall plus interest and penalties. If you charge too much, your customers cannot claim the correct ITC. Errors discovered during GST audits can result in demand notices, fines, and in serious cases, legal action. Always verify the HSN code for your products or SAC code for your services to ensure you are applying the correct slab.
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