Add GST to get inclusive price, or remove GST from inclusive price instantly. All slabs supported with CGST + SGST breakdown.
The Goods and Services Tax (GST), launched July 1, 2017, is India's unified indirect tax system that replaced 13+ different taxes including VAT, service tax, excise duty, entry tax, and Central Sales Tax. It is the most significant tax reform in India's history since Independence.
GST follows a destination-based consumption tax model — tax revenue goes to the state where the goods or services are consumed, not where they are produced. This eliminated the cascading tax effect (tax-on-tax) that made Indian goods globally uncompetitive.
| GST Rate | Category | Examples | CGST+SGST |
|---|---|---|---|
| 0% | Essential goods | Fresh vegetables, fruits, milk, eggs, cereals, bread, healthcare, education | 0+0 |
| 5% | Basic necessities | Packaged food, frozen vegetables, coffee, tea, life-saving drugs, economy hotels | 2.5+2.5 |
| 12% | Standard goods | Processed food, smartphones, computers, business class travel, non-AC restaurants | 6+6 |
| 18% | Most services & goods | Restaurants (AC), IT services, financial services, household appliances, FMCG | 9+9 |
| 28% | Luxury goods | Cars, motorcycles, cigarettes, aerated drinks, premium hotels, casinos, gambling | 14+14 |
Intra-state vs Inter-state: When buyer and seller are in the same state — GST splits into CGST + SGST (equally). When buyer and seller are in different states — full GST applies as IGST (goes to Centre, then shared with destination state).
Mandatory if annual turnover exceeds ₹40 lakh for goods (₹20 lakh for services, ₹10 lakh for special category states). E-commerce sellers must register regardless of turnover amount.
Businesses with turnover below ₹1.5 crore can pay flat 1–6% GST instead of standard rates. Simpler compliance, but cannot collect GST from customers or claim Input Tax Credit.
The most powerful GST benefit for businesses. GST paid on purchases can be set off against GST collected on sales. Only pay the net difference to government. Requires proper invoices from GST-registered suppliers.
Regular taxpayers file GSTR-1 (sales) monthly/quarterly and GSTR-3B (summary) monthly. Late filing penalty: ₹50/day (₹20/day for nil returns). Annual return GSTR-9 by December 31.