What is GST in India?
The Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition in India. The GST has largely replaced many indirect taxes in India, streamlining the entire nationwide tax regime into standard slab rates (5%, 12%, 18%, and 28%).
How to calculate GST easily
Calculating the amount of GST added to the net price (Exclusive GST) or the amount of GST included in the gross price (Inclusive GST) requires two distinct formulas:
1. GST Exclusive (Adding GST to Base Price)
GST Amount = (Original Cost x GST%) / 100
Net Price = Original Cost + GST Amount
Net Price = Original Cost + GST Amount
2. GST Inclusive (Extracting base price from Total Price)
GST Amount = Total Cost - [Total Cost x (100 / (100 + GST%))]
Base Price = Total Cost - GST Amount
Base Price = Total Cost - GST Amount
CGST vs SGST
When selling items intra-state (within the same state), the total GST amount is divided equally into two parts:
- CGST (Central GST): The revenue collected by the Central Government.
- SGST (State GST): The revenue collected by the State Government where the transaction happens.
Our completely free online Indian GST Calculator automates this splitting for you so your invoicing remains 100% compliant and mathematically perfect.