💰 GST Guide
How to Calculate GST in India – Step-by-Step Guide (2026)
GST (Goods and Services Tax) is India’s most significant indirect tax reform. Whether you are a business owner, student, or consumer, understanding how to calculate GST is essential. This complete step-by-step guide covers the GST formula, how to add and remove GST, CGST/SGST/IGST calculations, all GST rates, and practical examples for 2026.
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Table of Contents
💰 What is GST in India?
GST (Goods and Services Tax) is a comprehensive, multi-stage, destination-based indirect tax that replaced multiple cascading taxes in India. It was implemented on July 1, 2017, and is governed by the GST Council.
GST replaced taxes like Central Excise Duty, Service Tax, VAT, Sales Tax, and many others — simplifying India’s complex tax structure into a single unified tax system.
GST Structure in India
India follows a dual GST structure where both Central and State governments levy tax:
| Tax Type | Full Form | Applicable On | Goes To |
|---|---|---|---|
| CGST | Central Goods and Services Tax | Intra-state supply | Central Government |
| SGST | State Goods and Services Tax | Intra-state supply | State Government |
| IGST | Integrated Goods and Services Tax | Inter-state supply | Central Government |
| UTGST | Union Territory GST | Supply in Union Territories | Central Government |
💡 Key Point: When you buy something within the same state, you pay CGST + SGST. When you buy from another state, you pay IGST. The total tax rate remains the same either way.
🔢 GST Calculation Formula
There are two main GST calculations you need to know:
Formula 1: Adding GST (Exclusive GST)
GST Amount = Original Price × GST Rate ÷ 100
Final Price (GST Inclusive) = Original Price + GST Amount
OR
Final Price = Original Price × (1 + GST Rate/100)
OR
Final Price = Original Price × (1 + GST Rate/100)
Formula 2: Removing GST (Reverse Calculation)
Original Price = GST Inclusive Price ÷ (1 + GST Rate/100)
GST Amount = GST Inclusive Price − Original Price
Formula 3: CGST and SGST Split
CGST = Original Price × (GST Rate/2) ÷ 100
SGST = Original Price × (GST Rate/2) ÷ 100
Total GST = CGST + SGST (equals full GST rate)
➕ How to Add GST to a Price — Step by Step
Follow these simple steps to add GST to any price:
- Identify the original price (price before GST)
- Identify the applicable GST rate (5%, 12%, 18%, or 28%)
- Calculate GST amount: Original Price × GST Rate ÷ 100
- Add GST to original price to get final price
📚 Example 1: Add 18% GST to ₹1,000
Original Price = ₹1,000GST Rate = 18%
GST Amount = ₹1,000 × 18 ÷ 100 = ₹180
Final Price = ₹1,000 + ₹180 = ₹1,180
CGST (9%) = ₹90 | SGST (9%) = ₹90
📚 Example 2: Add 12% GST to ₹5,000
Original Price = ₹5,000GST Rate = 12%
GST Amount = ₹5,000 × 12 ÷ 100 = ₹600
Final Price = ₹5,000 + ₹600 = ₹5,600
CGST (6%) = ₹300 | SGST (6%) = ₹300
➖ How to Remove GST from Total Amount
When you have the GST-inclusive price and want to find the original price (pre-GST price):
- Note the GST-inclusive total price
- Identify the GST rate that was applied
- Divide by (1 + GST/100) to get original price
- Subtract original from total to get GST amount
📚 Example: Remove 18% GST from ₹1,180
Total Price (GST Inclusive) = ₹1,180GST Rate = 18%
Original Price = ₹1,180 ÷ (1 + 18/100) = ₹1,180 ÷ 1.18 = ₹1,000
GST Amount = ₹1,180 − ₹1,000 = ₹180
⚠ Common Mistake: Many people simply calculate 18% of ₹1,180 = ₹212.40 — this is WRONG! Always divide by (1 + rate/100) to reverse-calculate GST.
🏠 How to Calculate CGST and SGST
For intra-state transactions (buyer and seller in same state), the GST is split equally between CGST and SGST:
CGST = Original Price × (GST Rate / 2) ÷ 100
SGST = Original Price × (GST Rate / 2) ÷ 100
Total GST = CGST + SGST
| Total GST Rate | CGST Rate | SGST Rate | Example (₹10,000) |
|---|---|---|---|
| 5% | 2.5% | 2.5% | CGST ₹250 + SGST ₹250 = ₹500 |
| 12% | 6% | 6% | CGST ₹600 + SGST ₹600 = ₹1,200 |
| 18% | 9% | 9% | CGST ₹900 + SGST ₹900 = ₹1,800 |
| 28% | 14% | 14% | CGST ₹1,400 + SGST ₹1,400 = ₹2,800 |
🌎 How to Calculate IGST (Inter-State)
For inter-state transactions (buyer and seller in different states), IGST applies at the full GST rate:
IGST = Original Price × GST Rate ÷ 100
No CGST or SGST split — full rate as IGST
📚 Example: Seller in Mumbai sells to buyer in Delhi — 18% GST
Original Price = ₹10,000IGST = ₹10,000 × 18% = ₹1,800 (no CGST/SGST split)
Invoice Total = ₹10,000 + ₹1,800 = ₹11,800
| Transaction Type | Tax Applied | Example |
|---|---|---|
| Within same state (Intra-state) | CGST + SGST | Mumbai to Pune: CGST 9% + SGST 9% |
| Between states (Inter-state) | IGST only | Mumbai to Delhi: IGST 18% |
| Import to India | IGST + Customs Duty | Overseas to India |
| Export from India | Zero rated (0% GST) | India to overseas |
📋 GST Rates in India 2026 – Complete List
GST is levied at 5 main rates in India. Here is what falls under each:
| GST Rate | Category | Examples |
|---|---|---|
| 0% | Exempt / Zero rated | Fresh fruits, vegetables, milk, eggs, bread, salt, cereals, educational services, healthcare |
| 5% | Essential items | Packaged food, tea, coffee, edible oils, medicines, railway tickets, economy air travel |
| 12% | Standard goods | Butter, cheese, frozen meat, fruit juices, smartphones, business class air travel |
| 18% | Most goods & services | Capital goods, hair oil, toothpaste, soap, TVs, refrigerators, IT services, banking |
| 28% | Luxury & sin goods | Cars, motorcycles, AC, cement, paints, tobacco, aerated drinks, casinos |
| 3% | Special rate | Gold, silver, processed diamonds |
| 0.25% | Special rate | Rough precious stones |
*GST rates are subject to change by GST Council. Always verify with official GST portal (gst.gov.in) for current rates.
📚 Practical GST Calculation Examples
Example 1: Mobile Phone (18% GST)
Purchase of Mobile Phone
Original Price = ₹15,000GST Rate = 18%
GST Amount = ₹15,000 × 18/100 = ₹2,700
CGST = ₹1,350 | SGST = ₹1,350 (intra-state)
Final Price = ₹17,700
Example 2: Restaurant Bill (5% GST)
Restaurant Dine-in Bill
Food Bill = ₹800GST Rate = 5% (non-AC restaurant)
GST Amount = ₹800 × 5/100 = ₹40
CGST = ₹20 | SGST = ₹20
Total Bill = ₹840
Example 3: Car Purchase (28% GST + Cess)
Passenger Car (Below 4m, Petrol)
Ex-showroom Price = ₹8,00,000GST Rate = 28% + 1% Cess = 29%
GST Amount = ₹8,00,000 × 29/100 = ₹2,32,000
On-road base price = ₹10,32,000 (+ registration, insurance)
GST Quick Reference Table
| Original Price | 5% GST | 12% GST | 18% GST | 28% GST |
|---|---|---|---|---|
| ₹100 | ₹105 | ₹112 | ₹118 | ₹128 |
| ₹500 | ₹525 | ₹560 | ₹590 | ₹640 |
| ₹1,000 | ₹1,050 | ₹1,120 | ₹1,180 | ₹1,280 |
| ₹5,000 | ₹5,250 | ₹5,600 | ₹5,900 | ₹6,400 |
| ₹10,000 | ₹10,500 | ₹11,200 | ₹11,800 | ₹12,800 |
| ₹50,000 | ₹52,500 | ₹56,000 | ₹59,000 | ₹64,000 |
✅ GST Exempt Items in India
The following items and services are exempt from GST (0% rate):
Food Items (Exempt)
- Fresh fruits and vegetables (unprocessed)
- Milk, butter milk, curd (natural)
- Eggs (fresh)
- Unprocessed cereals, pulses, flour
- Fresh meat, fish, poultry (unprocessed)
- Bread (plain)
- Salt
Services (Exempt)
- Educational services (schools, colleges)
- Healthcare and medical services
- Agricultural services
- Religious services
- Services by RBI, SEBI, IRDA (regulatory)
- Public transportation (Metro, local trains)
💡 Tip: Use our free GST Calculator to instantly add or remove GST for any amount at 5%, 12%, 18%, or 28% rate with automatic CGST/SGST breakdown.
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❓ Frequently Asked Questions – GST Calculation
How to calculate 18% GST on ₹10,000?
GST = ₹10,000 × 18/100 = ₹1,800. Final Price = ₹10,000 + ₹1,800 = ₹11,800. CGST = ₹900, SGST = ₹900 (intra-state). Or IGST = ₹1,800 (inter-state).
How to remove GST from MRP?
Original Price = MRP ÷ (1 + GST Rate/100). Example: MRP ₹1,180 with 18% GST. Original = 1,180 ÷ 1.18 = ₹1,000. GST = ₹180. Use our GST Calculator — select “Remove GST” mode.
What is GST rate on mobile phones?
Mobile phones attract 18% GST in India. If a phone is priced at ₹15,000 before GST, you pay ₹15,000 + ₹2,700 GST = ₹17,700. Most electronics (TVs, laptops) also attract 18% GST.
What is GST rate on restaurants?
Non-AC restaurant: 5% GST (no input tax credit). AC restaurant or restaurant in hotel (room tariff above ₹7,500): 18% GST. Outdoor catering: 18%. Takeaway from non-AC: 5%. Check the restaurant bill carefully.
Is GST included in MRP?
Yes. In India, MRP (Maximum Retail Price) is GST-inclusive. The price printed on product packaging already includes GST. Retailers cannot charge more than MRP. Use our GST Calculator’s “Remove GST” mode to find pre-GST price from MRP.