It works both ways: add GST to a base price, or take it out of a price that already includes it.
The rates changed on 22 September 2025
The GST Council, at its meeting on 3 September 2025, replaced the old four-slab structure. From 22 September 2025, most items fall into two main rates, with a higher rate for a short list of luxury and "sin" goods.
| Rate | What it covers, broadly |
|---|---|
| 0% | Nil-rated and exempt supplies |
| 5% | Essentials, and many items that used to be at 12%, such as butter and sewing machines |
| 18% | The standard rate for most goods and services, including many items that used to be at 28%, such as air conditioners, televisions and small cars |
| 40% | Luxury and "sin" goods such as aerated drinks, motorcycles above 350cc and yachts; and, since 1 February 2026, cigarettes, pan masala and other tobacco products |
12% and 28% have largely gone. If you're working from an old price list or invoice template that charges either, check the current rate before you bill.
Some special rates remain: 3% for gold and jewellery, and 0.25% and 1.5% for some diamonds and precious stones. The calculator has a button for 3% and an Other box for 1.5%, 0.25% or any rate you type. Tobacco changed again on 1 February 2026: cigarettes, pan masala and other tobacco products moved to 40% (bidis to 18%), and the old compensation cess was replaced by a new excise duty on tobacco and a health cess on pan masala.
Classification decides your rate, not the general category. Look up the HSN or SAC code for what you sell, or ask your accountant.
Adding vs removing
Adding starts from a price before tax. ₹1,000 at 18% gives ₹180 of GST and ₹1,180 to charge.
Removing starts from a price that already includes tax, which is how most retail prices are shown. ₹1,180 inclusive at 18% contains ₹180 of GST and ₹1,000 of base price.
The formula is base price = inclusive price ÷ (1 + rate). That's why taking 18% off ₹1,180 gives the wrong answer: 18% of ₹1,180 is ₹212.40, not ₹180.
Worked examples
Adding GST to ₹1,000
| Rate | GST | Total |
|---|---|---|
| 5% | ₹50 | ₹1,050 |
| 18% | ₹180 | ₹1,180 |
| 40% | ₹400 | ₹1,400 |
Removing GST from an inclusive price
| Inclusive price | Rate | Base price | GST inside it |
|---|---|---|---|
| ₹1,050 | 5% | ₹1,000 | ₹50 |
| ₹1,180 | 18% | ₹1,000 | ₹180 |
| ₹1,400 | 40% | ₹1,000 | ₹400 |
| ₹500 | 18% | ₹423.73 | ₹76.27 |
The shortcut: to add GST, multiply by 1.05, 1.18 or 1.40. To remove it, divide by the same number.
The formula in Excel or Google Sheets
If the base price is in cell A2 and the rate (for example 18%) in B2:
| What you want | Formula |
|---|---|
| GST to add | =A2*B2 |
| Price with GST | =A2*(1+B2) |
| Base price from an inclusive price in A2 | =A2/(1+B2) |
| GST inside an inclusive price in A2 | =A2-A2/(1+B2) |
| CGST or SGST (each half) | =A2*B2/2 |
CGST, SGST and IGST
The rate is the same either way; only the split changes.
Within your state, it halves into CGST and SGST. 18% becomes 9% + 9%, and 5% becomes 2.5% + 2.5%.
Across states, it stays whole as IGST. 18% is charged as 18% IGST.
On ₹1,000 at 18%:
| Sale | CGST | SGST | IGST | Total tax |
|---|---|---|---|---|
| Within your state | ₹90 | ₹90 | ₹180 | |
| To another state | ₹180 | ₹180 |
Choose "Same state" or "Other state" and the calculator shows the matching split, ready to copy onto an invoice.
Discounts come first
GST is charged on the price after any discount shown on the invoice. A ₹1,000 item with a ₹100 discount is taxed on ₹900: ₹162 of GST at 18%, ₹1,062 in total.
Paise and rounding
Tax worked out per line often lands on paise, like ₹76.27 above. Invoices usually show the exact figures per line, then round the final total to the nearest rupee with a separate "round off" line.
Who can charge GST
Only a business registered for GST can charge it. Registration is compulsory above a turnover threshold, generally ₹40 lakh a year for goods and ₹20 lakh for services, and lower in some states. Some businesses must register whatever their turnover, for example those selling goods to other states; check with your accountant. Below the threshold you can register voluntarily.
If you aren't registered, don't add GST to your bills.
Make an invoice with these figures
Does paying by UPI add GST?
No. The GST on a bill is the GST on the goods or services, whatever way the customer pays. A shop that adds extra GST because you paid by UPI is wrong. Claims that the government will charge GST on UPI payments above ₹2,000 went viral in April 2025; the Ministry of Finance called them "completely false, misleading, and without any basis".
Questions
What are the GST rates now?
Since 22 September 2025, the main rates are 5% and 18%, with 40% for luxury and "sin" goods and 0% for nil-rated supplies. A few special rates remain, such as 3% on gold. Cigarettes, pan masala and other tobacco products have been at 40% since 1 February 2026.
How do I remove GST from an inclusive amount?
Divide by one plus the rate. At 18%, divide by 1.18. Don't subtract 18%.
GST nikalne ka formula kya hai?
GST jodna ho to: amount × rate. Jaise ₹1,000 par 18% = ₹180, total ₹1,180. Agar price mein GST pehle se shamil hai, to base price = price ÷ (1 + rate). Jaise ₹1,180 ÷ 1.18 = ₹1,000, aur GST = ₹180.
What's the difference between CGST, SGST and IGST?
Same total tax, different split. Within a state it's half CGST and half SGST. Between states it's all IGST.
Which GST rate applies to me?
It depends on the HSN or SAC code for what you sell. Check the current rate for your code, or ask your accountant.
Is GST charged before or after a discount?
After. Tax the discounted price.
Do I have to charge GST?
Only if you're registered. Registration is compulsory above the turnover threshold, generally ₹40 lakh for goods and ₹20 lakh for services, and for some businesses whatever their turnover, such as those selling goods to other states.
Sources
- GST rate changes from 22 September 2025 (56th GST Council meeting, 3 September 2025): ClearTax summary
- Tobacco and pan masala at 40% from 1 February 2026, compensation cess replaced: Business Today, 1 January 2026
- Ministry of Finance denial of GST on UPI payments, 18 April 2025: Alt News fact-check
Last reviewed 29 October 2026