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15 March 2024

How to Calculate GST in India — Inclusive vs Exclusive Explained

GST (Goods and Services Tax) replaced most indirect taxes in India on 1 July 2017. Here's how to calculate it correctly.

Two Types of GST Calculation

1. GST Exclusive (Adding GST)

This is used when you have the base price and want to find the final price.

Formula:

  • GST Amount = Base Price × GST Rate / 100
  • Total Price = Base Price + GST Amount

Example: Product costs ₹10,000 + 18% GST

  • GST = ₹10,000 × 18/100 = ₹1,800
  • Total = ₹11,800

2. GST Inclusive (Extracting GST)

This is used when you have the total price and want to find the base price.

Formula:

  • Base Price = Total Price / (1 + Rate/100)
  • GST Amount = Total Price − Base Price

Example: Product is sold for ₹11,800 inclusive of 18% GST

  • Base Price = ₹11,800 / 1.18 = ₹10,000
  • GST = ₹11,800 − ₹10,000 = ₹1,800

CGST and SGST

For intra-state transactions (within the same state), GST is split equally:

  • CGST (Central) = GST / 2
  • SGST (State) = GST / 2

For inter-state transactions, IGST (Integrated GST) = full GST rate applies.

GST Slabs in India

RateExamples
0%Milk, eggs, fresh vegetables
5%Household necessities, transport
12%Processed food, phones
18%Most services, electronics
28%Luxury goods, automobiles

Use Our GST Calculator

Our GST Calculator handles both inclusive and exclusive calculations instantly. Just enter the amount, select the GST rate and mode — results appear in real time.