What is GST?
Goods and Services Tax (GST) is the indirect tax applied on the supply of goods and services in India. It replaced VAT, service tax, excise and several other taxes with a unified structure. GST has four main rates in India: 5%, 12%, 18% and 28%, plus 0% for essentials and a higher rate on sin/luxury goods.
How to Calculate GST
For forward calculation (adding GST to net): GST = Net × Rate / 100. For reverse calculation (removing GST from gross): Net = Gross × 100 / (100 + Rate). Between the buyer and seller, total GST is split equally as CGST + SGST for intra-state transactions or entirely as IGST for inter-state transactions.
Frequently Asked Questions
What are the GST slabs?
0%, 5%, 12%, 18% and 28% are the main slabs.
Is GST different for inter-state sales?
Yes. Inter-state supplies are charged IGST (full rate). Intra-state supplies are charged CGST + SGST (split equally).