GST Calculator
Add or Remove GST from any amount instantly.
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Understanding GST Tax Slabs in India
Goods and Services Tax (GST) in India is categorized into specific rate slabs depending on the type of product or service. Choosing the correct slab is crucial for accurate invoicing and avoiding penalties.
Current GST Rate Structure:
- 0.25%: Special rate for rough/unprocessed precious and semi-precious stones.
- 3%: Applicable to Gold, Silver, processed Platinum, and imitation jewellery.
- 5%: Essential items like packaged food, household necessities, and economy class air travel.
- 18%: The standard rate for most manufactured goods, electronics, IT services, and financial services.
- 40%: The highest tax bracket applicable to ultra-luxury items, large cars/SUVs, tobacco products, and aerated drinks (Sin Goods).
GST Calculation Formulas
1. Adding GST (Exclusive): Use this to create an invoice from a base price.
GST Amount = (Base Price × Rate) / 100
Total = Base Price + GST
2. Removing GST (Inclusive): Use this to find the real cost of an item sold at MRP.
GST Amount = Total - [Total × {100 / (100 + Rate)}]
Frequently Asked Questions
1. What is the difference between CGST, SGST, and IGST?
For sales within the same state (Intra-state), tax is split equally between the Centre (CGST) and State (SGST). For sales between different states (Inter-state), the entire tax is collected as IGST.
2. Who needs to register for GST?
Any business whose turnover exceeds ₹40 lakhs (for goods) or ₹20 lakhs (for services) in a financial year must register. For e-commerce sellers, registration is mandatory regardless of turnover.
3. Can I claim Input Tax Credit (ITC)?
Yes, registered businesses can claim ITC on the GST paid on business purchases. This amount can be used to offset the GST liability on sales, preventing the cascading effect of taxes.
4. Is GST applicable on exports?
No, exports of goods and services are generally treated as "Zero-rated supplies," meaning GST is not charged on them, and you can claim a refund on the input tax paid.