GST (Goods and Services Tax) is a unified tax system in India that replaces multiple indirect taxes like VAT, Service Tax, Excise, and others. It is collected on the supply of goods and services and is divided into CGST, SGST, and IGST depending on intra-state or inter-state transactions.
GST is applied as a percentage on the base price of goods/services. Depending on the transaction and location, GST may be split into:
Common GST slabs in India are 5%, 12%, 18%, and 28%.
GST Amount = (Original Price × GST%) / 100
Final Price (Including GST) = Original Price + GST Amount
Example:
If base amount = ₹1,000 and GST = 18%,
GST = ₹180 and final price = ₹1,180.
GST Amount = 10,000 × 18% = ₹1,800
Final Price = ₹11,800
The primary GST slabs in India are 5%, 12%, 18%, and 28%.
It is the final price after adding GST to the base price.
GST-exclusive price = Final Price ÷ (1 + GST%/100)
IGST (Integrated GST) is applied to interstate transactions (between two states).