GST — Frequently Asked Questions
What are the GST slabs in India?+
GST has 4 main slabs: 5% (essential goods: food, medicine), 12% (computers, processed food, mobile phones), 18% (services, most goods: electronics, cement), 28% (luxury goods: cars, tobacco, aerated drinks). Additionally, 0% applies to unprocessed food, health services, education. Some items have specific/compositional rates.
What is the difference between CGST, SGST, and IGST?+
For intra-state transactions (seller and buyer in same state): GST is split equally — CGST (Central GST) goes to Centre, SGST (State GST) goes to the state. For inter-state transactions (different states): only IGST (Integrated GST) is levied, which goes to Centre and is later shared with the destination state. The total rate is the same either way.
How to calculate reverse GST (remove GST from inclusive price)?+
If you have the GST-inclusive price and want the pre-GST amount: Pre-GST = Inclusive Price / (1 + GST Rate/100). Example: ₹11,800 inclusive at 18% GST → Pre-GST = 11800/1.18 = ₹10,000. GST amount = ₹1,800. Use the "Remove GST" mode in our calculator.
Who needs to register for GST?+
Businesses with an annual turnover above ₹40 lakh (₹20 lakh for special category states, and ₹20 lakh/₹10 lakh for service providers) must register for GST. Registration is mandatory regardless of turnover for e-commerce sellers, inter-state suppliers, and casual taxable persons. Once registered, you must file GST returns (GSTR-1, GSTR-3B, etc.) even if you have no sales in a given period.
What is Input Tax Credit (ITC) under GST?+
Input Tax Credit lets a registered business offset the GST it paid on purchases (inputs) against the GST it collects on sales (output). This prevents the "tax on tax" cascading effect that existed under the pre-GST regime. For example, if you paid ₹1,800 GST on raw materials and collected ₹3,000 GST on your finished product, you only need to deposit the net ₹1,200 with the government.
Are there items exempt from GST?+
Yes. Fresh fruits and vegetables, milk, unbranded flour and cereals, books, newspapers, and healthcare/education services are among items that fall under the GST exemption (0% or "nil-rated") list. Petrol, diesel, and alcohol for human consumption remain outside the GST regime entirely and continue to attract state-level VAT/excise duty instead.
GST Calculator India 2026 — How to Calculate GST Correctly
Goods and Services Tax (GST) is India's unified indirect tax, replacing a patchwork of central and state levies (VAT, service tax, excise) with a single tax structure since July 2017. Every invoice you issue or receive carries GST at one of five slabs — 0%, 5%, 12%, 18%, or 28% — and getting the add/remove calculation right matters for accurate pricing, invoicing, and return filing.
Worked Example: Adding GST to a ₹10,000 Product
Say you're selling a product priced at ₹10,000 (exclusive of GST) that falls in the 18% GST slab. The GST amount is ₹10,000 × 18% = ₹1,800, making the final invoice value ₹11,800. If the sale is within the same state (intra-state), this ₹1,800 splits equally into ₹900 CGST and ₹900 SGST. If it's an inter-state sale, the full ₹1,800 is charged as IGST instead — the buyer pays the same total either way, only the accounting split differs.
GST Rate Slabs at a Glance
| Slab | Typical Items |
|---|
| 0% (Nil-rated) | Fresh produce, milk, books, education, healthcare |
| 5% | Packaged food, footwear under ₹1,000, life-saving drugs |
| 12% | Processed food, mobile phones, business-class air tickets |
| 18% | Most goods and services — electronics, cement, financial services |
| 28% | Luxury and sin goods — cars, tobacco, aerated drinks |
Rate slabs are periodically revised by the GST Council, so always cross-check the current rate for your specific product/service (via HSN/SAC code) before invoicing — this table is a general reference, not a live feed.