What is GST and how is it calculated?

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. Exclusive GST = Amount × (GST% / 100). Inclusive GST = Amount - [Amount / (1 + GST% / 100)].

What are the common GST tax rate slabs in India?

The primary GST tax rate slabs in India are 0%, 5%, 12%, 18%, and 28% based on the category of goods or services.

What is the difference between CGST, SGST, and IGST?

CGST and SGST are levied on intra-state transactions (within the same state) and shared equally between Central and State Governments. IGST is levied on inter-state transactions (between two states) and collected by the Central Government.

Who is required to register for GST in India?

Businesses with annual aggregate turnover exceeding ₹40 Lakhs for goods (₹20 Lakhs for services, and ₹10/20 Lakhs in special category states) must register for GST.

What is Input Tax Credit (ITC) under GST?

Input Tax Credit allows registered businesses to claim credit for GST paid on purchase of business goods or services to reduce their GST liability on sales output.

GST Calculator

Calculate Goods and Services Tax (GST) easily for inclusive or exclusive prices with instant tax slab calculations.

Excluding GST

Including GST

Total amount

₹

Tax slab

Total GST (12%)₹53,571

Pre-GST amount₹4,46,429

Total amount₹5,00,000

Understanding GST: Goods and Services Tax in India

The Goods and Services Tax (GST) is an indirect value-added tax levied on the supply of goods and services in India. Introduced on July 1, 2017, GST replaced multiple indirect taxes such as excise duty, VAT, and service tax into a single unified national tax system.

Dailytrades Pro Tip for Businesses & Freelancers

When issuing invoices or claiming Input Tax Credit (ITC), ensure you correctly separate the base price from the GST portion. Using an inclusive calculation formula prevents accidental over-reporting of income and helps claim full ITC deductions on business purchases.

Indian GST Tax Slabs Overview

Goods and services in India are categorized under five primary tax slabs set by the GST Council:

Tax Slab	Category	Common Examples
0% (Exempt)	Essential Goods	Fresh milk, unbranded food grains, fresh vegetables, healthcare services.
5%	Mass Consumption	Tea, coffee, sugar, edible oil, apparel under ₹1000, packaged foods.
12%	Standard Items	Computers, processed food, apparel above ₹1000, construction goods.
18%	Services & Tech	IT services, telecom, financial services, software, restaurants, capital goods.
28%	Luxury & Sin Goods	Automobiles, air conditioners, luxury items, betting, aerated drinks.

Types of GST in India: CGST, SGST & IGST

Intra-State (Same State)

When buyer and seller are in the same state, GST is split equally into CGST (Central GST) and SGST (State GST). For an 18% slab, 9% goes to Central & 9% to State.

Inter-State (Different States)

When goods/services are supplied across state borders, a single IGST (Integrated GST) is applied, which is collected by the Central Government and distributed to the destination state.

How to Use Dailytrades GST Calculator

Choose Calculation Mode

Select Excluding GST if you want to add tax to a net base price, or Including GST to extract tax from a gross price.

Enter Amount

Input your total or base amount in rupees using the slider or text box (up to ₹5,00,000).

Select Tax Slab Rate

Click any quick tax slab chip (5%, 12%, 18%, 28%) or adjust the slider to set a custom rate.

Frequently Asked Questions (FAQs)

Excluding GST means tax is calculated on top of the base amount (Base + Tax = Total). Including GST means the price already contains tax, so the tax amount is extracted backwards (Total - Tax = Base).

Financial calculators by Dailytrades