GST Calculator 2026
Add or remove GST instantly. Switch between "Add GST" (calculate total from base price) and "Remove GST" (extract base price from GST-inclusive amount). Shows CGST + SGST breakdown for intra-state transactions.
💡Quick reference
5% — essential goods (packaged food, economy hotels). 12% — processed food, medicines, business flights. 18% — most services, electronics, restaurants. 28% — luxury items, cars, tobacco, AC restaurants in 5-star hotels.
📖What is GST and why it matters
GST (Goods and Services Tax) is India's unified indirect tax system, implemented on July 1, 2017. It replaced 17 separate taxes — excise duty, VAT, service tax, octroi, entry tax, and others — with a single tax framework. This was the biggest tax reform in India's history, simplifying a fragmented system that varied state by state.
Before GST, a product manufactured in Maharashtra and sold in Karnataka would face excise duty (central), then VAT (state), then entry tax (local) — each calculated on the previous tax-inclusive price, creating a cascading effect. GST eliminates this by allowing input tax credit at every stage. You only pay tax on the value you add, not on taxes already paid.
GST is governed by the GST Council, a constitutional body chaired by the Union Finance Minister with state finance ministers as members. The Council decides rates, exemptions, and policy changes. Major decisions require 75% majority, with the centre holding 33% voting power and states collectively holding 67%.
GST slab structure — what falls where
Over 70% of items and services fall under the 18% slab. 28% is reserved for luxury and demerit goods. Some 28% items also attract additional cess — for example, SUVs attract 28% GST + 22% compensation cess = 50% total.
🔄CGST, SGST, and IGST explained
Intra-state transaction (buyer and seller in the same state): GST is split equally into CGST (goes to centre) and SGST (goes to state). If you buy a laptop for ₹50,000 + 18% GST in Delhi from a Delhi seller, you pay ₹4,500 CGST + ₹4,500 SGST = ₹9,000 total GST.
Inter-state transaction (buyer and seller in different states): The entire GST is charged as IGST. Same laptop bought from a Maharashtra seller by a Delhi buyer: ₹9,000 IGST. The centre later distributes the state's share to Delhi (the consuming state). The total amount you pay is identical — only the label changes.
CGST + SGST vs IGST — same tax, different routes
About 70% of all GST revenue comes from the 18% slab. If you're running a service business, chances are you're collecting and paying 18% GST on almost everything.
🏪GST registration — who needs it?
Mandatory registration if your annual turnover exceeds: ₹40 lakh for goods suppliers, ₹20 lakh for service providers, ₹10 lakh for businesses in special category states (northeastern states + Uttarakhand, Himachal Pradesh, J&K). These thresholds were revised in 2019.
Mandatory regardless of turnover for: inter-state suppliers, e-commerce operators, persons liable to pay tax under reverse charge, casual/non-resident taxable persons, input service distributors, TDS/TCS deductors, and agents of a supplier.
Registration process: Apply online at gst.gov.in. You need PAN, Aadhaar, bank account, business address proof, and photos. Processing takes 3-7 working days. GSTIN (15-digit registration number) is issued upon approval. First 2 digits = state code, next 10 = PAN, 13th = entity number, 14th = Z (default), 15th = check digit.
⚠️Common mistake by freelancers
Freelancers earning above ₹20 lakh/year from services must register for GST — even if all clients are in the same state. Many freelancers ignore this, and GST notices with 18% back-tax + interest + penalty arrive 2-3 years later. If you're a freelancer approaching ₹20L revenue, register proactively.
💡Input tax credit — the key GST advantage
Input Tax Credit (ITC) is what makes GST a "value-added" tax instead of a cascading tax. You can subtract the GST you paid on your purchases from the GST you collect on your sales. Only the net difference goes to the government.
Example: You're a manufacturer. You buy raw materials for ₹5,00,000 + ₹90,000 GST (18%). You sell finished goods for ₹10,00,000 + ₹1,80,000 GST (18%). You owe the government ₹1,80,000 - ₹90,000 = ₹90,000. Without ITC, you'd pay the full ₹1,80,000.
ITC conditions: You must have a valid tax invoice from the supplier. The supplier must have filed their return and paid GST. You must have received the goods/services. You must file your own return on time. ITC cannot be claimed on goods/services used for personal purposes, exempt supplies, or blocked items (food, health club, travel for employees).
How input tax credit works — before vs after GST
📱GST return filing — what you need to know
GSTR-1 (outward supplies): Filed by the 11th of every month. Lists all your sales invoices. Quarterly option available for businesses under ₹5 crore turnover.
GSTR-3B (summary return): Filed by the 20th of every month. Summarizes your total output tax, input tax credit claimed, and net tax payable. This is where you actually pay the tax.
GSTR-9 (annual return): Filed by December 31 of the following financial year. Consolidates all monthly/quarterly returns. Mandatory for all regular taxpayers. If turnover exceeds ₹5 crore, GSTR-9C (reconciliation statement) is also required.
Late filing penalty: ₹50 per day (₹25 CGST + ₹25 SGST) for regular returns. ₹20/day for nil returns. Maximum penalty capped at ₹5,000 per return. Interest at 18% per annum is charged on unpaid tax from due date to payment date.
🎯For small businesses
If your turnover is under ₹1.5 crore, consider the Composition Scheme — flat 1% tax (manufacturers) or 6% (services), quarterly filing instead of monthly, and much simpler compliance. The trade-off: you can't claim ITC and can't charge GST to customers on invoices.
📚Official sources
GST Portal — registration, return filing, and all compliance at gst.gov.in.
GST Council — rate changes, policy decisions at gstcouncil.gov.in.
HSN Code Search — find GST rate for any product at GST HSN Search.
Last reviewed: April 2026 • Sources: CBIC, GST Council notifications. This page is for informational purposes only. Consult a chartered accountant for GST compliance advice.
🏪GST for specific sectors — what you should know
Restaurants: Non-AC restaurants pay 5% GST (no ITC available). AC restaurants and those in hotels with room tariff above ₹7,500 pay 5% without ITC. Restaurants in 5-star hotels charge 18% with ITC. Outdoor catering and cloud kitchens are charged 5% without ITC. Takeaway food from restaurants is also 5%.
Real estate: Under-construction properties are charged 5% GST (1% for affordable housing below ₹45 lakh). Ready-to-move properties with completion certificate are exempt from GST. No ITC is available on 5%/1% rates. This is why builders often push to sell before completion certificate — they can pass on ITC benefits at higher effective rates.
Healthcare: Healthcare services by clinical establishments are exempt from GST. However, medical devices, equipment, and pharmaceutical products attract GST (5-12%). Room rent above ₹5,000/day in hospitals attracts 5% GST (without ITC). Ambulance services are exempt. Ayurvedic and homeopathic treatments are also exempt if provided by recognized practitioners.
Education: Services by educational institutions (school, college, university) to students are fully exempt. However, coaching institutes, tutoring services, and online courses attract 18% GST. International school fees may or may not attract GST depending on whether the institution qualifies as an "educational institution" under the Act.
IT services and freelancing: Software development, IT consulting, and digital services attract 18% GST. Freelancers providing services above ₹20 lakh turnover must register. Export of IT services is zero-rated (0% GST) — but you must still register and file returns to claim refund on input GST paid on expenses like internet, rent, and equipment.
📱GST compliance tips for small businesses
Track invoices meticulously: ITC can only be claimed if your supplier has filed their GSTR-1 and the invoice appears in your GSTR-2A/2B. If a supplier doesn't file, you lose ITC on that purchase. Use accounting software (Tally, Zoho Books, ClearTax) to auto-reconcile invoices monthly — don't wait until the annual return.
File returns on time: Late filing of GSTR-3B blocks your ability to file GSTR-1, which blocks your buyers from claiming ITC on their purchases from you. This creates a chain reaction — your buyers will stop buying from you if they can't claim ITC. Set calendar reminders: GSTR-1 by 11th, GSTR-3B by 20th of every month.
Use the composition scheme wisely: If you're under ₹1.5 crore turnover and don't sell inter-state, composition scheme (1-6% flat tax, quarterly filing) is simpler. But you cannot claim ITC or charge GST on invoices. This works well for local retailers, restaurants, and manufacturers with few input purchases. Not suitable for service businesses with high input costs.
Keep digital records: GST law requires you to maintain records for 72 months (6 years) from the due date of annual return. This includes all invoices (sales and purchase), credit/debit notes, payment vouchers, and bank statements. Digital records are acceptable — you don't need paper copies if you have proper digital backups.
💼GST for freelancers and consultants
When to register: If your annual revenue from services crosses ₹20 lakh (₹10 lakh in special category states), GST registration is mandatory. For goods suppliers, the threshold is ₹40 lakh. Revenue means total invoiced amount — not profit. Even if you're making a loss but billing above ₹20 lakh, you must register.
Charging clients: Once registered, you must charge 18% GST on all invoices. For B2B clients (companies), this isn't a cost — they claim it back as ITC. For B2C clients (individuals), it's an effective price increase. Many freelancers lose clients after GST registration because individual clients see an 18% price jump. Solution: absorb part of the GST by reducing your base rate slightly.
Input tax credit for freelancers: You can claim ITC on business expenses — laptop purchases (18% GST), internet bills (18%), co-working space rent (18%), software subscriptions (18%), professional courses (18%). If your monthly expenses with GST are ₹15,000, you save ₹2,700/month through ITC. Keep all purchase invoices with GST numbers.
Export of services: If you provide services to clients outside India (freelancing for US/UK companies), it's classified as "export of services" — zero-rated under GST. You charge 0% GST on export invoices. But you still need GST registration to file returns and claim refund on input GST paid on your Indian expenses. This makes GST registration beneficial even for export-only freelancers.
Filing requirements: Monthly GSTR-1 (by 11th) and GSTR-3B (by 20th). If you're under ₹5 crore turnover, you can opt for QRMP scheme — quarterly filing instead of monthly, but monthly tax payment via challan. Use accounting software like ClearTax, Zoho Books, or even a CA's services (₹1,000-3,000/month) to stay compliant without spending hours on GST paperwork.