What are the GST slabs in India and which products fall under them?

India has four standard GST rates plus exempt/nil categories. 0% (Exempt/Nil): fresh food, milk, eggs, fresh vegetables, books, education services, healthcare. 5%: edible oil, sugar, tea, coffee, medicines, transport services, economy class air travel. 12%: butter, cheese, processed food, mobile phones, solar panels, business class air travel. 18%: most services (restaurants AC, professional fees), most manufactured goods, electronics, software. 28%: luxury goods, automobiles, cement, tobacco, beverages. Most goods and services in everyday business fall under the 12% or 18% slab.

What is Input Tax Credit (ITC) and how does it reduce GST payable?

Input Tax Credit (ITC) lets registered businesses offset the GST they paid on purchases (inputs) against the GST they collect on sales (output tax). Net GST Payable = Output GST − Input GST (ITC). Example: You collected ₹18,000 GST on sales. You paid ₹12,000 GST on raw materials and services. Net GST you owe = ₹6,000. ITC prevents cascading tax (tax on tax). Conditions: the purchase must be used for business, the supplier must have filed returns, and you must have a valid tax invoice. ITC is not available on personal expenses or exempt supplies.

What is the GST Composition Scheme and who qualifies?

The Composition Scheme is a simplified GST option for small businesses with annual turnover up to ₹1.5 crore (₹75 lakh for special category states). Instead of the standard GST rates, composition taxpayers pay a flat rate on turnover: 1% for manufacturers and traders (0.5% CGST + 0.5% SGST), 5% for restaurants. Composition dealers cannot charge GST on their invoices, cannot claim Input Tax Credit, and cannot make inter-state supplies. This scheme reduces compliance burden (quarterly returns vs monthly) but is unsuitable for businesses that sell to other GST-registered buyers who need ITC.

Do I need to register for GST and what is the threshold?

GST registration is mandatory if your annual aggregate turnover exceeds ₹40 lakh (for goods suppliers in most states) or ₹20 lakh (for service providers and special category states — NE states, Uttarakhand, Himachal Pradesh). Some businesses must register regardless of turnover: if you sell across state lines, if you are an e-commerce seller, if you want to claim Input Tax Credit, or if you are a casual taxable person. Voluntarily registering below the threshold is allowed and can be beneficial if your buyers are GST-registered businesses (so they can claim ITC on your supplies).

How is GST calculated on services like restaurant bills or professional fees?

GST on services works the same way as goods. Restaurant bills: AC restaurants charge 5% GST (no ITC), non-AC restaurants also 5%. Professional services (CA, lawyer, consultant): 18% GST. Freelance/digital services to a business: 18% GST, but if the client is GST-registered, they can reverse-charge and claim ITC. Rent on commercial property: 18% GST. Health insurance premium: 18% GST. Medical consultation: 0% (exempt). Always check whether the GST shown on your bill is intra-state (CGST+SGST) or inter-state (IGST) — it does not change your total cost but matters for ITC claims.

Can I use this GST calculator for a multi-item invoice?

Yes. The multi-item tab in our GST calculator lets you add multiple line items — each with its own description, quantity, unit price, and GST rate (0%, 5%, 12%, 18%, or 28%). The calculator totals the taxable value, CGST, SGST (or IGST), and grand total across all items. This is useful for preparing proforma invoices, quotations, or quickly checking what your invoice total should be before generating it in accounting software. You can switch between intra-state (CGST+SGST) and inter-state (IGST) for the full invoice.

GST Calculator 2026 — Add & Remove GST, CGST SGST IGST, Multi-Item Invoice India

Base Price (Exclusive of GST)

₹

The price before GST is added (exclusive price)

GST Rate

Supply Type

Input Tax Credit (ITC) — Optional

₹

Result

18%

Base Price ₹0.00

GST Amount ₹0.00

Total Price (with GST) ₹0.00

GST Amount = Base × (Rate ÷ 100)
Total = Base + GST Amount
CGST = SGST = GST ÷ 2 (intra-state)
Net GST = GST − ITC (if ITC entered)

Multi-Item GST Invoice

Add items with different GST rates. Totals calculate automatically.

CGST + SGST (Intra-State)

Item / Description	Qty	Unit Price	GST Rate	Taxable Value	GST Amount	Total
Total				₹0.00	—	₹0.00

Invoice Summary

Taxable Amount ₹0.00

Grand Total ₹0.00

Estimate your total annual GST liability based on expected annual turnover. Useful for GST registration threshold checks and advance tax planning.

Annual Taxable Turnover

₹

GST Rate on Output

Supply Type

Annual GST Liability Estimate

Total Annual GST ₹0.00

This is the output GST you would collect from customers. Deduct your Input Tax Credit (ITC) to find the net amount payable to the government.

How GST is Calculated in India — The Exact Formula

GST (Goods and Services Tax) is India's unified indirect tax that replaced VAT, Service Tax, and Excise Duty in July 2017. Every GST calculation follows one of two formulas depending on whether the price you start with is exclusive of GST (base price) or inclusive of GST (price tag already includes it).

Adding GST to a Base Price

GST Amount = Base Price × (GST Rate ÷ 100)
Total Price = Base Price + GST Amount

Example: Base price ₹10,000 at 18% GST
GST = ₹1,800 → Total = ₹11,800

Removing GST from an Inclusive Price

Base Price = Inclusive Price ÷ (1 + Rate/100)
GST = Inclusive Price − Base Price

Example: Price tag ₹11,800 at 18% GST
Base = ₹11,800 ÷ 1.18 = ₹10,000 · GST = ₹1,800

The CGST + SGST split: For intra-state transactions (buyer and seller in the same state), the total GST rate is split equally — half as CGST (Central GST) and half as SGST (State GST). So 18% GST = 9% CGST + 9% SGST. For inter-state transactions, the full rate is charged as IGST. The total tax burden on the buyer is identical in both cases.

GST Rate Slabs 2026: What Rate Applies to What?

India has 4 standard GST rate slabs. Most consumer goods and services fall under 12% or 18%.

GST Rate	Common Goods & Services	CGST	SGST
0% (Nil)	Fresh vegetables, milk, eggs, bread, books, health services, school education	0%	0%
5%	Edible oil, sugar, tea, coffee, medicines, economy air travel, transport services	2.5%	2.5%
12%	Butter, cheese, processed food, mobile phones, solar panels, business class air travel	6%	6%
18%	Most services (restaurants AC, professional fees, software), electronics, telecom	9%	9%
28%	Luxury cars, tobacco, aerated beverages, cement, high-end electronics	14%	14%

CGST vs SGST vs IGST: What Each One Means

CGST

Central Goods and Services Tax

Collected by the Central Government on intra-state supply. Always equals SGST — half of the total GST rate. On an 18% GST transaction, CGST = 9%.

SGST

State Goods and Services Tax

Collected by the State Government on intra-state supply. Always equal to CGST. Stays in the state where the supply originates. Same rate as CGST.

IGST

Integrated Goods and Services Tax

Applied on inter-state supply and imports. Full GST rate goes to the Centre as IGST. The Centre then shares SGST equivalent with the destination state. Total tax = same as CGST+SGST.

Key takeaway: The total GST paid by the buyer is identical whether the supply is intra-state or inter-state. The difference is purely in how the tax revenue is distributed between the Centre and the states. As a buyer, both appear on your invoice — CGST+SGST for same-state purchases, IGST for cross-state purchases.

Input Tax Credit (ITC): How Businesses Reduce Their GST Bill

Input Tax Credit is the mechanism that prevents GST from stacking at every stage of the supply chain. A GST-registered business can deduct the GST it paid on its purchases from the GST it collects on its sales.

Net GST Payable to Government = Output GST (collected on sales) − Input GST (paid on purchases)

Party	Taxable Sale	GST Collected (18%)	ITC Available	Net GST Paid
Manufacturer	₹1,00,000	₹18,000	₹0	₹18,000
Wholesaler	₹1,20,000	₹21,600	₹18,000	₹3,600
Retailer	₹1,50,000	₹27,000	₹21,600	₹5,400
Total GST collected by Government				₹27,000

Without ITC, each party would pay tax on the full sale value — resulting in cumulative tax well above ₹27,000. ITC ensures tax is only paid on the value added at each stage.

GST Registration: Who Must Register and What Happens If You Don't

Mandatory Registration Threshold

▸Goods suppliers: Annual turnover > ₹40 lakh (most states) or ₹20 lakh (special category states)
▸Service providers: Annual turnover > ₹20 lakh
▸Any inter-state supply, regardless of turnover
▸E-commerce sellers (Amazon, Flipkart) — mandatory
▸Businesses wanting to claim Input Tax Credit

Composition Scheme (Small Businesses)

If your turnover is under ₹1.5 crore, you can opt for the Composition Scheme:

✓Flat rate: 1% for manufacturers & traders, 5% for restaurants
✓Quarterly filing instead of monthly
✗Cannot charge GST on invoices
✗Cannot claim ITC
✗Cannot supply goods inter-state

GST Calculator — Frequently Asked Questions

How do I add GST to a price in India? +

Multiply the base price by the GST rate and add it. GST Amount = Base Price × (Rate ÷ 100). Total = Base + GST. Example: ₹1,000 at 18% → GST = ₹180, Total = ₹1,180. For intra-state, 18% splits into CGST 9% + SGST 9%. For inter-state, the full 18% is IGST.

How do I remove GST from an inclusive price? +

Base Price = Inclusive Price ÷ (1 + Rate/100). GST = Inclusive Price − Base Price. Example: ₹1,180 with 18% GST → Base = ₹1,180 ÷ 1.18 = ₹1,000. GST = ₹180. This is called reverse GST or GST-inclusive calculation.

What is the difference between CGST, SGST, and IGST? +

For intra-state supply (same state): total GST splits equally — CGST to Centre, SGST to State. 18% = 9% CGST + 9% SGST. For inter-state supply (different states): full rate as IGST to Centre, which then shares with destination state. Total tax paid by buyer is identical in both cases.

What are the 4 GST slabs in India? +

0% (Nil): fresh food, health, education. 5%: essentials — edible oil, medicines, transport. 12%: processed food, mobile phones, solar. 18%: most services and manufactured goods. 28%: luxury cars, tobacco, aerated beverages. Most B2B transactions are at 12% or 18%.

What is Input Tax Credit (ITC) and how does it work? +

ITC lets registered businesses deduct GST paid on purchases from GST collected on sales. Net GST Payable = Output GST − Input GST. Example: collected ₹18,000 on sales, paid ₹12,000 on raw materials → Net payable = ₹6,000. This prevents cascading tax. ITC requires a valid tax invoice and supplier GST return filing.

Do I need to register for GST? +

Mandatory if: goods turnover exceeds ₹40 lakh (₹20 lakh in special category states), or service turnover exceeds ₹20 lakh, or you sell inter-state, or you sell on e-commerce platforms. Voluntary registration is allowed below the threshold — useful if your buyers are GST-registered and need ITC.

What is the GST Composition Scheme? +

A simplified option for businesses with turnover up to ₹1.5 crore. Pay a flat rate: 1% for traders/manufacturers, 5% for restaurants. Benefits: lower tax rate, quarterly returns. Limitations: cannot charge GST on invoices, cannot claim ITC, no inter-state sales.

Can I use this calculator for a multi-item GST invoice? +

Yes — use the Multi-Item tab. Add items with different GST rates, quantities, and unit prices. The calculator totals the taxable value, CGST, SGST (or IGST), and grand total. Switch between intra-state and inter-state for the full invoice.

GST Calculator India 2026 — Add & Remove GST, CGST SGST IGST Split, Multi-Item Invoice