Add GST · Remove GST · CGST & SGST · IGST · Invoice Builder · HSN Lookup · FY 2026-27
Disclaimer: GST rates shown reflect the GST Council reforms effective 22 September 2025 (FY 2026-27), including the new 40% slab for sin/luxury goods, rate cuts on cement, automobiles, gyms, and daily essentials, and Nil GST on individual life & health insurance premiums. Always verify specific HSN/SAC codes on gst.gov.in. For filing and compliance, consult a qualified CA or tax professional.
Since the GST 2.0 reform took effect on 22 September 2025, India's GST structure runs on two primary slabs — 5% and 18% — plus a higher 40% rate for luxury and sin goods, replacing the older 5/12/18/28% system. A few niche items still use special rates outside this main structure.
Two different formulas apply depending on whether your starting price already includes GST:
| Mode | Formula | Example (₹1,000 base, 18% GST) |
|---|---|---|
| Exclusive of GST Your price doesn't include GST yet | GST Amount = Base × (Rate ÷ 100) Total = Base + GST Amount | GST = 1,000 × 0.18 = ₹180 Total = ₹1,180 |
| Inclusive of GST Your price already includes GST | Base = Total ÷ (1 + Rate ÷ 100) GST Amount = Total − Base | Base = 1,180 ÷ 1.18 = ₹1,000 GST = ₹180 |
Inputs: Base = ₹1,000 | Rate = 18% | Mode = Exclusive of GST
A common mistake is calculating the inclusive-price base as simply Total × Rate% instead of dividing by (1 + Rate÷100) first — this overstates the GST component and understates the true base price. Always divide out the rate before applying the percentage.
| Rate | Type | Typical Items |
|---|---|---|
| 0% | Nil / Exempt | Fresh produce, unpackaged grains/milk, healthcare, education, individual life & health insurance |
| 0.25% | Special | Rough/semi-processed diamonds, precious stones |
| 3% | Special | Gold, silver, jewellery (making charges taxed separately at 5%) |
| 5% | Merit Rate | Packaged food, medicines, soap/toothpaste/shampoo, agri equipment, economy transport, hotel stays up to ₹7,500/night |
| 18% | Standard Rate | Electronics, appliances, automobiles (standard), IT/software services, telecom, restaurants, construction materials |
| 40% | Demerit / Luxury | Tobacco, pan masala, aerated & energy drinks, luxury cars, motorcycles >350cc |
| Item | Detail |
|---|---|
| Registration threshold (goods) | ₹40 lakh annual turnover (₹20 lakh in special category states) |
| Registration threshold (services) | ₹20 lakh annual turnover (₹10 lakh in special category states) |
| GSTR-1 (outward supplies) | 11th of the following month (monthly) / quarterly under QRMP |
| GSTR-3B (summary return + tax payment) | 20th of the following month |
| Interest on late tax payment | 18% p.a. |
| E-invoicing | Mandatory above ₹5 crore turnover — requires an IRN before issuing invoices |
| E-way bill | Required for goods movement above ₹50,000 in value (interstate, or intrastate in select states) |
| Input Tax Credit (ITC) | Claimable only on business purchases where the supplier has filed GSTR-1 and the invoice reflects in your GSTR-2B |
Since the GST 2.0 reform effective 22 September 2025, the primary slabs are 0% (nil/exempt), 5% (merit rate), 18% (standard rate), and 40% (luxury/sin goods), plus niche special rates of 0.25% (rough diamonds) and 3% (gold/silver/jewellery). The earlier 12% and 28% slabs have been phased out for almost all goods.
Use the formula Base = Total ÷ (1 + Rate ÷ 100), then GST Amount = Total − Base. For example, on a GST-inclusive price of ₹1,180 at 18%, the base price is 1,180 ÷ 1.18 = ₹1,000 and the GST component is ₹180. Select "Inclusive of GST" mode in the calculator to do this automatically.
For an intra-state transaction (buyer and seller in the same state), GST splits equally into CGST (collected by the Centre) and SGST (collected by the State) — e.g., 18% becomes 9% CGST + 9% SGST. For an inter-state transaction, the full rate is charged as a single IGST instead, with no split. The total tax amount is the same either way.
The 40% slab was introduced in the September 2025 GST 2.0 reform to replace the older 28% + compensation cess structure on luxury and sin goods. It applies to items such as aerated and energy drinks, luxury vehicles, motorcycles above 350cc, and similar high-end or demerit goods. Some tobacco products remain temporarily on the older 28% + cess structure until pending cess-related loan obligations are cleared.
No — individual life and health insurance premiums were moved to the Nil (0%) GST category as part of the September 2025 reform, down from 18% previously. This applies to individual policies; group insurance and certain other categories may follow different rules, so confirm with your insurer for your specific policy type.
GST registration becomes mandatory once annual turnover exceeds ₹40 lakh for a goods business or ₹20 lakh for a services business (₹20 lakh and ₹10 lakh respectively in special category states). Businesses below these thresholds can register voluntarily to claim input tax credit, even though it isn't compulsory.
GSTR-1 (outward supplies) is due on the 11th of the following month for monthly filers, or quarterly under the QRMP scheme for eligible small taxpayers. GSTR-3B (the summary return and tax payment) is due on the 20th of the following month. Paying tax after this date attracts 18% per annum interest on the outstanding amount.
No — ITC can only be claimed on purchases used for business purposes, and only if your supplier has correctly filed their GSTR-1 and the invoice appears in your GSTR-2B statement. Personal expenses, blocked credits (such as most motor vehicles and certain food/beverage expenses), and invoices not reflected in GSTR-2B are not eligible for ITC.
Gold, silver, and precious stones sit outside the main 5/18/40% slab structure and continue to be taxed at their pre-existing special rates — 3% on gold/silver/jewellery and 0.25% on rough or semi-processed diamonds — which the September 2025 reform left unchanged. Jewellery making charges are taxed separately, typically at 5%.
E-invoicing is mandatory for businesses with an annual turnover above ₹5 crore. These businesses must generate an Invoice Reference Number (IRN) through the government's e-invoicing portal before issuing each invoice to remain GST compliant. Businesses below this threshold may still adopt e-invoicing voluntarily.
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