Formulas
| You have | Formula |
|---|---|
| Price before GST | GST = price × rate ÷ 100; total = price + GST |
| Price including GST | Base = total × 100 ÷ (100 + rate); GST = total − base |
| Intra-state supply | CGST = SGST = GST ÷ 2 |
| Inter-state supply | IGST = full GST |
GST rate slabs after GST 2.0
| Rate | Typical goods and services (from 22 September 2025) |
|---|---|
| Nil | Fresh food, milk, educational and most healthcare services |
| 5% | Essential goods, many packaged foods, some consumer goods, economy transport |
| 18% | Most goods and services — the standard rate for professional and IT services |
| 40% | Luxury and sin goods such as tobacco products, aerated drinks and large cars |
| 3% / 0.25% | Gold and jewellery / rough diamonds |
Which rate applies to you
The rate depends on the HSN code of the goods or the SAC code of the service, not on the business. Many items moved between rates in the September 2025 rationalisation, so check invoices and accounting software masters against the current notification.
Worked example: IT services invoice within the same state
- 1Fee for services: ₹1,00,000. Rate: 18%.
- 2GST = ₹18,000, split into CGST ₹9,000 and SGST ₹9,000.
- 3Invoice total = ₹1,18,000. For a client in another state, charge IGST ₹18,000 instead.
Invoice value ₹1,18,000, of which ₹18,000 is GST.
