Understanding GST (Goods and Services Tax)
GST is India's unified indirect tax system that replaced VAT, Excise Duty, and Service Tax. It follows a dual structure, meaning both the Central and State governments administer taxes concurrently.
CGST, SGST, and IGST
For intra-state sales (within the same state), the GST rate is split evenly between the Centre (CGST) and the State (SGST). For inter-state sales (between two different states), a single Integrated GST (IGST) is applied and collected by the Centre. For example, an 18% GST within Maharashtra becomes 9% CGST and 9% SGST.
Adding vs Removing GST
To add 18% GST to a base price of ₹1,000, multiply by 1.18 (Result: ₹1,180). To calculate the base price before GST from a final price of ₹1,180, divide by 1.18 (Result: ₹1,000). Our calculator handles this reverse math instantly.