Tax

GST

Goods and Services Tax — unified indirect tax replacing VAT, service tax, excise, etc. Five slabs: 0%, 5%, 12%, 18%, 28%.

Definition

GST is a destination-based consumption tax levied on supply of goods and services across India. It replaced multiple indirect taxes from 1 July 2017. The standard slabs are 0% (essentials), 5% (mass-consumption), 12% (processed goods, mid-range services), 18% (most goods and services), and 28% (luxury, sin items). Additional cess applies on some 28% items (tobacco, SUVs).

Intra-state supplies split GST equally into CGST (Central) and SGST (State). Inter-state supplies attract IGST (Integrated GST) at the same combined rate. Registration is mandatory for turnover above ₹40 lakh for goods (₹20 lakh in special-category states) or ₹20 lakh for services. Composition scheme available for small businesses.

Formula

Forward: Net + GST = Gross | Reverse: Net = Gross × 100 / (100 + Rate)

Example

₹100 product at 18% GST → Gross ₹118 (₹100 net + ₹18 GST). Reverse: ₹118 inclusive at 18% → Net = ₹118 × 100/118 = ₹100, GST = ₹18.

Calculators that use this

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