India's Goods and Services Tax (GST) is a unified indirect tax that replaced a complex web of central and state levies — Central Excise, Service Tax, VAT, and more — on 1 July 2017. It follows a dual GST model: for intra-state (within one state) transactions, the tax is split equally between CGST (Central GST) and SGST (State GST). For inter-state transactions or imports, a single IGST (Integrated GST) is charged at the full rate by the Central Government and later apportioned to the consuming state.
What are the GST slabs in India?
India has five primary GST slabs: 0% (essential goods like milk, fresh produce, books), 5% (packed food, transport, insurance), 12% (mobile phones, butter, AC economy class travel), 18% (most services, IT, restaurants, hotels), and 28% (luxury cars, tobacco, aerated drinks). Special rates of 3% apply to gold/silver.
What is CGST and SGST?
CGST (Central GST) and SGST (State GST) are levied simultaneously on intra-state (within the same state) transactions. Each is exactly half the total GST rate. On an 18% GST item, CGST = 9% goes to the Central Government and SGST = 9% goes to the State Government. Revenue is shared 50:50 between Centre and State.
What is IGST and when is it used?
IGST (Integrated GST) is charged on inter-state transactions — when the seller and buyer are in different states — and on imports. The Central Government collects the full IGST and then transfers the state's share to the destination state. IGST = CGST + SGST combined.
How do I calculate reverse GST (remove GST)?
Use the formula: Base Price = Inclusive Price ÷ (1 + Rate/100). For 18%: divide by 1.18. Example: ₹11,800 inclusive ÷ 1.18 = ₹10,000 base. GST = ₹11,800 − ₹10,000 = ₹1,800. Use the "Remove GST" tab in this calculator for instant results.
What is the GST registration threshold?
For general states: ₹40 lakhs turnover for goods and ₹20 lakhs for services. For special category states (NE states, Uttarakhand, J&K, Himachal Pradesh): ₹20 lakhs for goods and ₹10 lakhs for services. E-commerce operators must register regardless of turnover.
Is GST charged on exports?
No. Exports are zero-rated under GST — no GST is charged on goods or services exported from India. Exporters can claim a refund of input tax credit (ITC) paid on inputs used for export production, making exports tax-competitive internationally.
What is the Composition Scheme?
Small businesses with annual turnover up to ₹1.5 crore (₹75 lakhs for some service providers) can opt for the Composition Scheme and pay a flat lower rate (1–6% depending on category) instead of regular GST. However, they cannot collect GST from customers or claim input tax credit.
Can I claim Input Tax Credit (ITC)?
Yes. GST-registered businesses can claim ITC — a credit for GST paid on inputs (raw materials, services) used for business. ITC reduces the net GST payable on output sales. For example, if you paid ₹1,000 GST on purchases and collected ₹2,000 GST on sales, you pay only ₹1,000 to the government. ITC cannot be claimed on personal expenses.