Finance Guide
GST Calculator India — How to Calculate GST, CGST & SGST
Understand GST rates, formulas, and calculate GST instantly for free
5 min read · March 2026
GST (Goods and Services Tax) was introduced in India on July 1, 2017, replacing multiple indirect taxes. Whether you are a small business owner, a freelancer, or a student studying commerce — understanding how to calculate GST is essential. This guide explains everything simply with examples and a free calculator.
What is GST?
GST is a single indirect tax levied on the supply of goods and services in India. It replaced taxes like VAT, Service Tax, Excise Duty, and others. GST is collected at every stage of the supply chain but the final burden falls on the end consumer.
GST Rates in India (2026)
0%
Essential items — milk, eggs, fresh vegetables, books
5%
Packaged food, medicines, transport services
12%
Processed food, computers, business class air travel
18%
Most services, electronics, restaurants, software
Note: A 28% slab also exists for luxury goods, tobacco, and automobiles.
CGST, SGST and IGST — What's the Difference?
CGST (Central GST) — Collected by the Central Government on intra-state transactions (within the same state). Rate is half of the total GST rate.
SGST (State GST) — Collected by the State Government on intra-state transactions. Rate is also half of the total GST rate.
IGST (Integrated GST) — Collected by the Central Government on inter-state transactions (between two different states). Rate equals the full GST rate.
Example: If you sell goods worth ₹10,000 within Maharashtra at 18% GST — you pay 9% CGST (₹900) + 9% SGST (₹900). If you sell to a buyer in Delhi, you pay 18% IGST (₹1,800) instead.
GST Calculation Formula
Adding GST to a price:
GST Amount = (Original Price × GST Rate) ÷ 100
Final Price = Original Price + GST Amount
Example: Price = ₹1,000, GST = 18%
GST Amount = (1000 × 18) ÷ 100 = ₹180
Final Price = ₹1,000 + ₹180 = ₹1,180
Removing GST from a price (reverse calculation):
Original Price = Final Price ÷ (1 + GST Rate ÷ 100)
GST Amount = Final Price − Original Price
Example: Final Price = ₹1,180, GST = 18%
Original Price = 1180 ÷ 1.18 = ₹1,000
GST Amount = 1180 − 1000 = ₹180
Who Needs to Register for GST?
- Businesses with annual turnover above ₹40 lakh (goods) or ₹20 lakh (services)
- E-commerce sellers regardless of turnover
- Businesses making inter-state supply of goods
- Casual taxable persons and non-resident taxable persons
- Persons required to pay tax under reverse charge mechanism
Tip for Freelancers: If you are a freelancer or consultant earning above ₹20 lakh per year, you must register for GST. Services like software development, design, and consulting fall under the 18% GST slab.
Frequently Asked Questions
What is the GST rate on software services?
Software services, IT services, and consulting services attract 18% GST in India.
Is GST applicable on exports?
No. Exports are zero-rated under GST. You can claim a refund of input tax credit on exports.
How do I calculate GST on a restaurant bill?
Restaurants charge 5% GST (no input tax credit) or 18% GST (with input tax credit, for AC restaurants). Use our free GST calculator to calculate the exact amount.
What is the difference between inclusive and exclusive GST?
Exclusive GST means the price shown does not include GST — you add GST on top. Inclusive GST means the price already includes GST — you need to reverse-calculate to find the base price.
Calculate GST Instantly — Free
Add or remove GST, get CGST/SGST split. No sign-up needed.
Open GST Calculator →