Understanding GST in India
GST (Goods and Services Tax) replaced multiple indirect taxes in India from July 1, 2017. Let's understand how it works.
Types of GST
1. CGST (Central GST)
Collected by the Central Government on intra-state supplies.
2. SGST (State GST)
Collected by the State Government on intra-state supplies.
3. IGST (Integrated GST)
Collected by Central Government on inter-state supplies.
GST Rates in India
| Category | Rate | Examples | |----------|------|----------| | Essential | 0% | Fresh vegetables, milk | | Basic | 5% | Sugar, tea, edible oil | | Standard | 12% | Computers, processed food | | Standard+ | 18% | Most goods & services | | Luxury | 28% | Cars, AC, luxury items |
How to Calculate GST
Adding GST to Price:
GST Amount = (Original Price × GST Rate) ÷ 100 Total Price = Original Price + GST Amount
Removing GST from Price:
Original Price = Total Price ÷ (1 + GST Rate/100)
Example Calculation
Product price: ₹10,000 (GST: 18%)
Intra-state (within same state):
- CGST (9%): ₹900
- SGST (9%): ₹900
- Total: ₹11,800
Inter-state (different states):
- IGST (18%): ₹1,800
- Total: ₹11,800
Use our GST Calculator for instant calculations.
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