To add GST, multiply the price by the rate: ₹10,000 at 18% is ₹1,800 GST, total ₹11,800. To remove GST from an inclusive price, divide by (1 + rate): ₹11,800 ÷ 1.18 = ₹10,000. Within one state the GST is split half CGST and half SGST; between states it is all IGST. Since 22 September 2025 the main rates are 5% and 18%, with 40% for luxury and sin goods.
GST rates in force as of October 2026
The 56th GST Council meeting on 3 September 2025 replaced the four main slabs (5, 12, 18 and 28%) with two: a merit rate of 5% and a standard rate of 18%, plus a demerit rate of 40% for a short list of luxury and sin goods. The new goods rates are in Notification 9/2025-Central Tax (Rate), in force from 22 September 2025. Tobacco and pan masala stayed at 28% plus compensation cess until Notification 19/2025-Central Tax (Rate) moved them to 40% from 1 February 2026 and removed the 28% schedule altogether.
| Total GST | CGST + SGST | Typical goods |
|---|---|---|
| 0% | Nil | Unpacked fresh food, milk, notified essentials |
| 0.25% | 0.125% + 0.125% | Rough or simply sawn diamonds, precious stones |
| 1.5% | 0.75% + 0.75% | Cut and polished diamonds, worked synthetic stones |
| 3% | 1.5% + 1.5% | Gold, silver, platinum, jewellery, coins, imitation jewellery |
| 5% | 2.5% + 2.5% | Daily-use goods, many foods, medicines, farm inputs |
| 18% | 9% + 9% | Most manufactured goods and most services, including biris from 1 February 2026 |
| 40% | 20% + 20% | Aerated and sugared drinks, larger cars, motorcycles above 350 cc, yachts, tobacco, pan masala, betting and gaming |
Your product's rate depends on its HSN code (SAC for services). Look it up in the notification or ask your accountant; the same word can fall in different headings. Services follow a separate rate notification, with a few special rates such as those on residential construction; use "Other rate" in the calculator for those.
Worked example: adding and removing GST
A Pune trader sells goods worth ₹10,000 before tax at 18%.
- Sale to a buyer in Pune (same state): CGST 9% = ₹900, SGST 9% = ₹900, total ₹11,800.
- Sale to a buyer in Surat (Gujarat): IGST 18% = ₹1,800, total ₹11,800. The buyer pays the same; only the head of tax changes.
- A customer quotes you ₹11,800 "including GST": taxable value = 11,800 × 100 ÷ 118 = ₹10,000 and GST = ₹1,800. The common mistake is to take 18% of ₹11,800 (₹2,124), which overstates the tax by ₹324.
- Gold jewellery of ₹1,00,000 at 3%: CGST ₹1,500 + SGST ₹1,500 = ₹3,000, total ₹1,03,000. Making charges billed separately are a job-work service with their own rate.
CGST, SGST, UTGST or IGST: which one applies
Compare the supplier's location with the place of supply. If both are in the same state, charge CGST and SGST (in a Union Territory without a legislature, such as Chandigarh or Ladakh, UTGST replaces SGST). If they are in different states, charge IGST. Exports and supplies to SEZ units are treated as inter-state and carry IGST or move under a bond or LUT without tax. Charging the wrong head is costly: the tax paid under the wrong head has to be paid again under the right one and the first payment claimed back as a refund.
For goods, the place of supply is usually where the movement of goods ends, which is the buyer's delivery address. For services the rules differ by type of service, so check before you bill an out-of-state client.
From the calculator to a real invoice
Once you know the tax, the invoice needs the details in Rule 46: your GSTIN, a serial number, date, buyer details, HSN code, taxable value, rate and amount of each tax, and the place of supply. Make one for free with the GST invoice generator, or let FundRaksha Book pick the rate from the HSN code, apply CGST/SGST or IGST from the buyer's state and keep your stock and GSTR-1 data in one place. The first 300 invoices are free. Before you bill a new buyer on credit, check their GSTIN with the GSTIN validator.