What is GST and why do you need a calculator?
Goods and Services Tax (GST) is the single indirect tax charged on most goods and services in India. Businesses need to add GST to their prices and, often, work backwards from a GST-inclusive price to find the base amount and the tax. A calculator removes the arithmetic errors.
How to add or remove GST
Worked example
18% GST both ways
- Price before GST
- ₹10,000
- GST at 18%
- ₹1,800
- Price including GST
- ₹11,800
- Base hidden in ₹11,800
- ₹10,000
Removing GST from an inclusive price is not the same as subtracting 18% — divide by 1.18 instead.
Within one state, the tax splits equally into CGST (Centre) and SGST (State), each half the rate. For sales between states, a single IGST equal to the full rate is charged.
GST rates after 22 September 2025
GST 2.0 simplified the rate structure to two main slabs, 5% and 18%, plus a 40% slab for sin and luxury goods. The old 12% and 28% slabs were removed for most items.
| Rate | Typically applies to |
|---|---|
| 0.25% | Rough diamonds |
| 3% | Gold, silver, jewellery |
| 5% | Essentials and many everyday items |
| 18% | Standard rate for most goods & services |
| 40% | Sin & luxury goods |
| 12% (old) | Before 22 Sep 2025 (mostly moved to 5% or 18%) |
| 28% (old) | Before 22 Sep 2025 (mostly moved to 18%) |
Which rate applies depends on the product or service classification (HSN/SAC). Check the current notification or your tax advisor for exact items.

