What changed on 22 September 2025
The 56th GST Council meeting (September 2025) collapsed the GST rate structure. The 12 per cent slab and the 28 per cent slab were removed. Most items that sat at 12 per cent moved to 5 per cent or 18 per cent. Most items that sat at 28 per cent moved to 18 per cent, while sin and luxury items were grouped into a new 40 per cent slab. The old nil and special rates (0 per cent, 0.25 per cent on rough diamonds and 3 per cent on gold and silver) carry on.
Individual term life insurance and individual health insurance moved to a nil GST rate from 22 September 2025, as confirmed by the Department of Financial Services FAQ of October 2025. Group term life and group credit-life insurance remain at 18 per cent. This calculator sets the rate from the select above; it does not classify a specific product on its own.
The formula
In add mode, the entered price is the net price. Tax equals net multiplied by rate divided by 100, and the gross price equals net plus tax. In remove mode, the entered price is already tax-inclusive. The net price equals the gross price divided by one plus the rate divided by 100, and the tax equals the gross minus the net.
The split into CGST and SGST (for intra-state supply) or IGST (for inter-state supply) sits on top of this. Intra-state halves the total tax between the Centre and the State. Inter-state sends the full tax rate under IGST to the Centre, which later settles with the destination State. The two paths produce the same total tax; only the split differs.
Worked example a reader can check
Take a net price of ₹1,000 and an 18 per cent rate. Tax is ₹1,000 times 18, divided by 100, which is ₹180. Gross is ₹1,000 plus ₹180, which is ₹1,180. Inside a state, that ₹180 shows as ₹90 CGST and ₹90 SGST on the invoice. Across states, the same ₹180 shows as ₹180 IGST.
| Slab | Tax on ₹1,000 | Price with GST |
|---|---|---|
| 0 per cent | ₹0 | ₹1,000 |
| 0.25 per cent | ₹2.50 | ₹1,002.50 |
| 3 per cent | ₹30 | ₹1,030 |
| 5 per cent | ₹50 | ₹1,050 |
| 18 per cent | ₹180 | ₹1,180 |
| 40 per cent | ₹400 | ₹1,400 |
To reverse the sum, take the ₹1,180 and divide by 1.18; the result is ₹1,000. Multiply the result by 0.18 to get ₹180 of GST. The arithmetic is the same whichever slab the item is in.
CGST, SGST and IGST, line by line
Intra-state supply is where both the supplier and the place of supply sit in the same State or Union Territory. The CGST Act 2017 assigns half the total GST rate to CGST, and the matching SGST Act in each State assigns the other half to SGST. So an 18 per cent intra-state invoice reads 9 per cent CGST and 9 per cent SGST.
Inter-state supply is where the supplier and the place of supply sit in different States or Union Territories. The IGST Act 2017 charges the full rate as IGST on the invoice. The destination State later gets its half of the IGST under the IGST settlement. For the paying buyer the total rate is unchanged, but the ledger entries differ, which matters when claiming input tax credit.
How this page handles your rate
The rate select covers every slab the Council currently uses: 0 per cent, 0.25 per cent, 3 per cent, 5 per cent, 18 per cent and 40 per cent. The custom row lets a reader enter a rate for a scenario question or a historical invoice. The page never looks up an item's HSN or SAC code on its own, so the reader is responsible for picking the right slab. If a reader is not sure of the slab for a specific item, the CBIC website publishes the rate finder keyed by HSN or SAC.
Place of supply follows the IGST Act rules, which are not always obvious. The default is intra-state because a reader often starts from a local shop invoice; switch to inter-state if the supplier's registered address and the place of supply are in different States. For a service delivered from one State to a customer in another State, the place of supply is typically where the service is received.
What this calculator does not do
- It does not classify an item under an HSN or SAC code. Pick the slab that matches your item from the CBIC rate finder or the GST portal before entering it here.
- It does not apply input tax credit. Businesses net GST paid on inputs against GST collected on outputs; that calculation belongs in a bookkeeping tool or in the GSTR-3B return.
- It does not add a compensation cess. A few 40 per cent slab items (such as tobacco) carry a separate cess under the GST Compensation to States Act 2017. This page prints the base GST only.
- It does not treat exports or SEZ supplies, which are zero-rated under a separate mechanism.
- It does not compute the TDS or TCS liability of a government buyer or an e-commerce operator; those sit under separate sections of the CGST Act 2017.
Things a reader should check before paying
Printed on every GST invoice: the supplier's GSTIN, the buyer's GSTIN if the buyer is registered, the HSN or SAC code, the taxable value, and either CGST plus SGST or IGST at the right rate. When the invoice shows a single line called GST without splitting it, the supplier has not followed the format set by Rule 46 of the CGST Rules 2017 and the invoice may not support an input tax credit claim.
For a restaurant bill, the standalone restaurant rate is 5 per cent without input tax credit from 22 September 2025, under notification 20/2019 as amended. A restaurant inside a hotel with a room tariff above ₹7,500 per day has the option of 5 per cent without input tax credit or 18 per cent with it. Both options are present on the slab select above.
Frequently asked questions
What are the GST slabs in 2026-27?
The slabs are 0 per cent, 0.25 per cent on rough diamonds, 3 per cent on gold and silver, 5 per cent, 18 per cent and 40 per cent for sin and luxury items. The 12 per cent and 28 per cent slabs were removed on 22 September 2025. The nil rate applies to individual term life and individual health insurance from the same date.
How do I add GST to a net price?
Multiply the net price by the GST rate divided by 100. That gives the tax. Add the tax to the net price to get the gross or invoice price. For example, ₹500 at 5 per cent is ₹25 of GST, which makes the invoice ₹525.
How do I remove GST from a tax-inclusive price?
Divide the inclusive price by one plus the rate divided by 100. That gives the net. Subtract the net from the inclusive price to get the tax. For example, ₹1,180 at 18 per cent divides to ₹1,000 net and leaves ₹180 of tax.
When is GST split into CGST and SGST?
When the supplier and the place of supply are inside the same State or Union Territory, the total tax is split in half: one half is CGST (to the Centre) and the other half is SGST (to the State). An 18 per cent intra-state invoice reads 9 per cent plus 9 per cent.
When does IGST apply?
IGST applies on an inter-state supply, where the supplier and the place of supply are in different States or Union Territories. The invoice shows the full rate as IGST. Imports into India are also treated as inter-state and attract IGST, settled with the destination State under the IGST Act 2017.
Which items are at 40 per cent?
The 40 per cent slab covers tobacco, pan masala, cigarettes, gutkha, aerated and caffeinated drinks, and some high-end items such as luxury cars and yachts. A few of these carry an additional compensation cess that this page does not print. Check the CBIC rate finder for any specific product.
Has GST on insurance changed?
Yes. Individual term life insurance and individual health insurance moved to a nil GST rate from 22 September 2025, per the DFS FAQ of October 2025. Group term life and group credit-life insurance continue at 18 per cent. This page lets you pick nil for an individual term-life or health invoice.
Does this page compute input tax credit?
No. Input tax credit netting is a return-level calculation inside GSTR-3B, not a per-invoice arithmetic. A registered buyer collects the GST input amount from the GSTR-2B statement and sets it off against output tax in the return.
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