Goods and Services Tax (GST) is India's unified indirect tax that replaced VAT, service tax, excise duty, and multiple other taxes. It applies to the supply of goods and services across India. Our GST calculator lets you compute the GST amount on any transaction — whether adding GST to a base price (GST-exclusive) or extracting the base price from a GST-inclusive amount.
GST Rate Slabs in India
India uses a multi-rate GST structure: 0% (essential goods — food grains, fresh vegetables), 5% (household necessities, economy transport), 12% (processed food, computers), 18% (most goods and services, restaurants, telecom), and 28% (luxury goods — cars, tobacco, aerated drinks). Gold and precious metals attract 3%; rough diamonds 0.25%. Petroleum products are currently outside GST.
CGST, SGST, and IGST — Understanding the Split
GST has three components: CGST (Central GST) and SGST (State GST) for intra-state transactions — each is half the applicable GST rate. IGST (Integrated GST) applies on inter-state transactions. For example, 18% GST on an intra-state sale = 9% CGST + 9% SGST.
Input Tax Credit (ITC)
Registered businesses can offset the GST paid on purchases (input tax credit) against the GST collected on sales. Only the net GST is paid to the government. This eliminates cascading taxes (tax on tax). Consumers bear the final GST; businesses are merely collection agents.
Frequently Asked Questions
Who needs to register for GST?
Businesses with annual turnover above ₹40 lakh (goods) or ₹20 lakh (services) must register. In special category states, thresholds are lower. E-commerce sellers and inter-state suppliers must register regardless of turnover.
Is GST applicable on rent?
Residential rent paid by individuals is exempt from GST. Commercial rent (shops, offices) attracts 18% GST if the landlord's turnover exceeds the GST threshold.
What is the GST rate on restaurant bills?
Standard restaurants charge 5% GST without ITC. Restaurants in 5-star hotels (or room tariff above ₹7,500/night) charge 18% GST with ITC. Takeaway and delivery are also taxed at 5%.
Is there GST on health insurance premiums?
Yes. Health insurance premiums attract 18% GST. The full premium (including GST) qualifies for Section 80D deduction up to the applicable limits.
Can individuals claim GST refunds?
Non-registered consumers generally cannot claim GST refunds as they are not part of the GST chain. Only registered businesses can file for refunds — typically in cases of excess ITC or exports.