GST Calculator

Quickly add or remove GST from any amount using standard Indian rates (Updated June 2026)

✓ Instant Calculations | ✓ CGST/SGST Breakdown | ✓ All GST Rates

Remove GST
Add GST

💡 Most common: 5% (essentials), 12% (processed foods), 18% (services), 28% (luxury)

For special rates like 2.5% (unpacked food), 9% (specific services)

GST Calculator: A GST calculator is an online tool that calculates the Goods and Services Tax amount for any transaction in India — breaking down the total price into base price and GST component (CGST + SGST for intra-state, or IGST for inter-state). India uses a four-tier GST structure: 5%, 12%, 18%, and 28%, with the September 2025 GST 2.0 reform reducing to three tiers (5%, 18%, 40%).

📊 GST Revenue — Ministry of Finance

  • GST collection March 2025: ₹1.96 lakh crore — second-highest monthly collection since GST launch (July 2017). (Ministry of Finance, March 2025)
  • Total GST-registered taxpayers: 1.47 crore as of March 2025, up from 1.40 crore a year earlier. (GSTN Portal, 2025)
  • Annual GST collection FY 2024-25: ₹22.08 lakh crore — first year exceeding ₹22 lakh crore. (Ministry of Finance, April 2025)
  • GST 2.0 reform (September 2025): rate structure simplified from four tiers (5/12/18/28%) to three tiers (5/18/40%) to reduce classification disputes. (GST Council, 54th Meeting, September 2025)

Total Amount (Incl. GST)

₹ 11,200

GST Amount: ₹ 1,200

Transaction Type:

CGST (6%): ₹ 600
AM

Reviewed by

CA Arjun Mehta

CA (ICAI) · B.Com (Hons) · 9+ years · Income Tax, GST & Investment Planning

Last reviewed: June 2026 · GST Calculation

✓ Expert Verified
class="flex justify-between items-center p-3 bg-white rounded-lg"> SGST (6%): ₹ 600
📊

Bulk GST Calculator

Calculate GST for multiple items at once (Perfect for invoices)

Item Name Quantity Price (₹) GST Rate (%) GST Amount (₹) Total (₹) Action
₹120 ₹1,120

Total Items

1

Subtotal (Before GST)

₹1,000

Total GST

₹120

Grand Total

₹1,120

💰

GST + Margin Calculator

Calculate selling price with desired profit margin and GST

Your target profit percentage

Base Selling Price (Before GST)

₹1,200

GST Amount

₹216

Final Selling Price (Incl. GST)

₹1,416

Profit Breakdown:

Your Profit: ₹200
Profit %: 20%

💡 How it works: If you buy at ₹1,000 and want 20% profit, your base price will be ₹1,200. Adding 18% GST (₹216) gives final price of ₹1,416.

🔄 Reverse GST Calculator — Find Pre-GST Price from Total

Already paid a GST-inclusive amount? Use reverse GST to find the base price (excl. GST) and exact tax paid. Formula: Base Amount = Total Amount ÷ (1 + GST%/100)

5% GST — Reverse Examples
You Paid (Incl. GST)Base PriceGST (5%)
₹525₹500₹25
₹1,050₹1,000₹50
₹5,250₹5,000₹250
18% GST — Reverse Examples
You Paid (Incl. GST)Base PriceGST (18%)
₹1,180₹1,000₹180
₹5,900₹5,000₹900
₹11,800₹10,000₹1,800
40% GST — Reverse Examples
You Paid (Incl. GST)Base PriceGST (40%)
₹1,400₹1,000₹400
₹7,000₹5,000₹2,000
₹14,000₹10,000₹4,000
Reverse GST Formula: Base Amount = Total Price × 100 ÷ (100 + GST Rate)  |  GST Paid = Total Price − Base Amount  |  Example: ₹11,800 total at 18% → Base = 11,800 × 100/118 = ₹10,000, GST = ₹1,800

⚖️ CGST vs SGST vs IGST — Complete Breakdown

GST in India is collected in three components depending on whether the transaction is within a state (intra-state) or between states (inter-state). Every invoice must show the correct split.

🏠 Intra-State Sale (CGST + SGST)

Buyer and seller in the same state. GST split equally between Central (CGST) and State (SGST).

Example: Delhi seller → Delhi buyer at 18% GST
→ 9% CGST + 9% SGST

✈️ Inter-State Sale (IGST)

Buyer and seller in different states. Full GST goes to Central as IGST (redistributed to destination state).

Example: Mumbai seller → Delhi buyer at 18% GST
→ 18% IGST (no CGST/SGST split)

📦 Import / Export (IGST)

Imports from outside India attract IGST at full rate (equivalent to customs IGST). Exports are zero-rated — 0% GST with ITC refund eligibility.

GST Rate (Total) CGST (Central) SGST (State) IGST (Inter-state) Applies To (GST 2.0)
0% (Nil) 0% 0% 0% Fresh vegetables, milk, eggs, bread, health/education services
5% 2.5% 2.5% 5% Packed food, soaps, medicines, EVs, hotel ≤₹7,500/night, gyms/salons
18% 9% 9% 18% AC, TV, laptop, mobile phone, car (small), cement, restaurant (AC), telecom
40% 20% 20% 40% Tobacco, cigarettes, pan masala, aerated drinks, luxury cars/SUVs

📋 GST 2.0 Rate Table — Top 50 Items (Updated June 2026)

Based on 56th GST Council meeting (Sep 3, 2025) · Effective September 22, 2025 · Source: CBIC GST portal

GST 2.0 Summary: Old 12% and 28% slabs have been merged. Main rates are now 5% (essential goods) and 18% (standard goods/services). New 40% demerit rate replaces 28% + cess for luxury and sin goods.
Item / Category Old Rate New Rate CGST+SGST / IGST
✅ 0% GST — EXEMPT
Fresh vegetables & fruits0%0%Nil / Nil
Milk, eggs, curd, lassi0%0%Nil / Nil
Bread, salt, unbranded cereals0%0%Nil / Nil
Healthcare & education services0%0%Nil / Nil
Life & health insurance premium18%0% ✨Nil / Nil
33 lifesaving drugs, cancer medicines5–12%0% ✨Nil / Nil
🟢 5% GST — MERIT RATE (CGST 2.5% + SGST 2.5%)
Soaps, shampoos, toothpaste12%5% ↓2.5% + 2.5% / 5%
Packaged food, biscuits, pasta12%5% ↓2.5% + 2.5% / 5%
All medicines & drugs12%5% ↓2.5% + 2.5% / 5%
Electric vehicles (EV)5%5%2.5% + 2.5% / 5%
Hotel stay ≤ ₹7,500 / night12%5% ↓2.5% + 2.5% / 5%
Gym / fitness centres, salons18%5% ↓2.5% + 2.5% / 5%
Footwear ≤ ₹2,5005%5%2.5% + 2.5% / 5%
Agricultural equipment & fertilisers12%5% ↓2.5% + 2.5% / 5%
Cooking oil, sugar, tea, coffee5%5%2.5% + 2.5% / 5%
🔵 18% GST — STANDARD RATE (CGST 9% + SGST 9%)
Air conditioner (all sizes)28%18% ↓9% + 9% / 18%
Televisions, large screens28%18% ↓9% + 9% / 18%
Refrigerators, washing machines28%18% ↓9% + 9% / 18%
Cars (petrol ≤1200cc, diesel ≤1500cc)28%18% ↓9% + 9% / 18%
Motorcycles / scooters (≤350cc)28%18% ↓9% + 9% / 18%
Cement28%18% ↓9% + 9% / 18%
Mobile phones, smartphones18%18%9% + 9% / 18%
Computers & laptops18%18%9% + 9% / 18%
Restaurant (AC / with alcohol)18%18%9% + 9% / 18%
Hotel room > ₹7,500 / night18%18%9% + 9% / 18%
Telecom services (mobile recharge)18%18%9% + 9% / 18%
Financial & banking services18%18%9% + 9% / 18%
Paints & varnishes28%18% ↓9% + 9% / 18%
OTT subscriptions (Netflix, Hotstar)18%18%9% + 9% / 18%
🔴 40% GST — DEMERIT / SIN GOODS (CGST 20% + SGST 20%)
Cigarettes & tobacco products28%+cess40%20% + 20% / 40%
Pan masala28%+cess40%20% + 20% / 40%
Aerated drinks & cola beverages28%+cess40%20% + 20% / 40%
Online gaming (real money games)28%40%20% + 20% / 40%
Luxury / large cars & SUVs (>1500cc)28%+cess40%20% + 20% / 40%
Premium motorcycles (>350cc)28%+cess40%20% + 20% / 40%

Source: 56th GST Council Meeting (September 3, 2025) · CBIC Notification · Effective September 22, 2025. Note: Life & health insurance premiums are now GST-exempt (0%) for individual policyholders. Some special rates (3%, 0.25%) continue for gold/diamond jewellery. Always verify HSN/SAC codes at cbic-gst.gov.in for exact rates before filing returns.

🇮🇳 Real Indian GST Examples

Understanding GST through everyday scenarios in India

🍽️

Restaurant Dining

Mumbai | Non-AC Restaurant

Food + Beverages: ₹1,200
GST (5%): ₹60
Total Bill: ₹1,260

💡 Note: Non-AC restaurants charge 5% GST. AC restaurants with liquor license charge 18% GST.

📱

Mobile Phone Purchase

Bangalore | Electronics Store

Base Price: ₹25,000
GST (12%): ₹3,000
• CGST (6%): ₹1,500
• SGST (6%): ₹1,500
You Pay: ₹28,000

💡 Note: Mobile phones attract 12% GST. Feature phones have 18% GST.

🛒

Online Grocery Order

Delhi | BigBasket/Swiggy Instamart

Rice (10kg): ₹500
Packed Snacks: ₹300
GST (Rice: 0%, Snacks: 12%): ₹36
Total: ₹836

💡 Note: Essential food items (rice, wheat, milk) are GST-exempt. Packed/processed foods have 5-12% GST.

💼

Freelancer Services

Pune | Digital Marketing

Service Fees: ₹50,000
GST (18%): ₹9,000
• CGST (9%): ₹4,500
• SGST (9%): ₹4,500
Invoice Total: ₹59,000

💡 Note: Most professional services attract 18% GST. Freelancers with turnover below ₹20L are exempt.

💡 5 Pro Tips for GST Management

Expert strategies to save money and stay compliant

1

🎯 Claim Input Tax Credit (ITC)

If you're a registered business, claim ITC on all GST-paid purchases to reduce your tax liability.

Example:

Paid ₹10,000 GST on purchases → Collected ₹15,000 GST on sales → Pay only ₹5,000 to govt

💰 Potential Savings: 100% of input GST

2

📋 File Returns on Time

Avoid late fees (₹100-200/day) and interest (18% p.a.) by filing GSTR-1 and GSTR-3B on time.

Deadlines:

• GSTR-1: 11th of next month

• GSTR-3B: 20th of next month

• Annual Return: 31st December

💰 Avoid: ₹50,000+ in penalties yearly

3

🏢 Consider Composition Scheme

Small businesses (turnover < ₹1.5 Cr) can opt for simplified GST at flat rates (1-5%).

Benefits:

• Pay 1-5% vs 12-18% regular rate

• Quarterly returns instead of monthly

• Minimal compliance burden

💰 Savings: 70-80% reduced tax rate

4

🔍 Verify GSTIN of Suppliers

Always verify supplier's GSTIN to ensure valid ITC claims and avoid fake invoice frauds.

How to Verify:

1. Visit: gst.gov.in

2. Go to "Search Taxpayer"

3. Enter GSTIN

4. Check status (Active/Cancelled)

💰 Avoid: ITC denial, legal issues

5

💻 Use GST Software/Accounting Tools

Automate GST calculations, invoicing, and return filing to save time and reduce errors.

Top Tools:

• Tally Prime: ₹18,000/year

• Zoho Books: ₹1,500/month

• ClearTax: Free-₹999/month

• QuickBooks: ₹1,750/month

💰 Save: 20+ hours/month, avoid errors

💎

🎁 Bonus: E-invoicing is Mandatory

Businesses with turnover > ₹5 crores must generate e-invoices through GST portal (since Oct 2023).

Key Points:

• IRN (Invoice Reference Number) required

• Real-time GST portal reporting

• QR code on invoice mandatory

• Non-compliance: ₹10,000 penalty

✓ Stay compliant, avoid penalties

🌟 Why Choose CalcWise GST Calculator?

The most trusted GST calculator for Indian businesses and consumers

⚡

Instant Calculations

Real-time GST calculations as you type. No need to click "Calculate" button. Results update instantly.

✅

100% Accurate

Uses official GST formulas prescribed by CBIC. Trusted by 50,000+ users including CAs and businesses.

📊

Visual Breakdown

Doughnut chart shows GST vs Base amount split. CGST/SGST breakdown clearly displayed.

📱

Mobile Optimized

Works perfectly on smartphones and tablets. Calculate GST on-the-go while shopping or invoicing.

💾

Export & Share

Download calculations as PDF. Share via WhatsApp, email, or copy to clipboard instantly.

🔒

100% Private & Free

No data stored, no sign-up required. Completely free forever. No hidden charges or premium features.

🔗 Related Financial Calculators

Explore our complete suite of free calculators for Indian businesses

💰

Income Tax Calculator

Calculate income tax for FY 2025-26 under old & new regime

→ Calculate Now
🏦

EMI Calculator

Calculate loan EMI for home, car, personal loans

→ Calculate Now
📈

SIP Calculator

Calculate mutual fund SIP returns with growth projections

→ Calculate Now
🧾

TDS Calculator

Calculate TDS on salary, professional fees, rent

→ Calculate Now
🏠

HRA Calculator

Calculate House Rent Allowance tax exemption

→ Calculate Now
💎

FD Calculator

Calculate Fixed Deposit maturity amount and interest

→ Calculate Now

📋 Complete GST Rate Table — Updated June 2026 (Post-GST 2.0)

Quick reference guide for all GST rates in India

GST Rate Product/Service Category Common Examples
0% Essential Food Items Fresh fruits, vegetables, milk, curd, bread, rice, wheat, eggs, fish, meat
5% Daily Necessities Sugar, tea, coffee, edible oils, coal, medicines, life-saving drugs, transport services
12% Processed Foods & Goods Mobile phones, butter, ghee, frozen foods, fruit juices, business class air tickets
18% Most Goods & Services AC restaurants, electronics, textiles, hotels, IT services, telecom, banking, insurance
28% Luxury & Sin Goods Cars, motorcycles, cigarettes, aerated drinks, AC, washing machines, paint
2.5% Unpacked Food Items (New) Unpacked snacks, sweets, namkeen (effective Sep 22, 2025)
9% Specific Services (New) Certain accommodation services, select professional services (effective Sep 22, 2025)

💡 Note: GST rates are subject to change based on GST Council decisions. This table reflects rates as of October 21, 2025. Always verify current rates on cbic.gov.in

❓ Frequently Asked Questions

Everything you need to know about GST in India

❓ What is GST and how is it calculated?

GST (Goods and Services Tax) is a unified indirect tax system in India that replaced multiple taxes like VAT, Service Tax, and Excise Duty.

Formulas:

GST Amount = (Base Price × GST Rate) ÷ 100

Final Price = Base Price + GST Amount

💰 What are CGST, SGST, and IGST?

GST is divided into three components based on transaction type:

CGST: Central GST (for intra-state) → Central Govt

SGST: State GST (for intra-state) → State Govt

IGST: Integrated GST (for inter-state) → Central Govt

Example: 18% GST = 9% CGST + 9% SGST

🔄 How to calculate GST backwards from final price?

To find base price when you know the GST-inclusive price:

Formula:

Base = Total ÷ (1 + GST Rate/100)

GST = Total - Base

Example: ₹1,180 total with 18% GST
Base = 1,180 ÷ 1.18 = ₹1,000

🏢 Who needs to register for GST?

GST registration is mandatory if:

✓ Annual turnover exceeds ₹20 lakhs (₹10L for special states)

✓ Making inter-state supplies

✓ E-commerce seller/aggregator

✓ Casual taxable person

Exemption: Businesses below threshold can opt for voluntary registration

📅 What are GST return filing deadlines?

Different GST returns have different due dates:

GSTR-1 (Sales): 11th of next month

GSTR-3B (Summary): 20th of next month

GSTR-4 (Composition): Quarterly

GSTR-9 (Annual): 31st December

Late fees: ₹100-200/day + 18% interest p.a.

✅ Is this calculator 100% accurate?

Yes! Our calculator uses official GST formulas prescribed by CBIC and is 100% accurate for standard calculations.

What we calculate:

✓ Basic GST addition/removal

✓ CGST/SGST/IGST breakdown

✓ All standard rates (0-28%)

Note: For complex scenarios (reverse charge, composition scheme), consult a GST expert.

📊 What are the different GST rates in India?

India has a five-tier GST rate structure (as of June 2026):

0%: Essential items (rice, wheat, milk, eggs)

5%: Daily necessities (sugar, tea, medicines)

12%: Processed foods, mobile phones

18%: Most goods & services (electronics, IT)

28%: Luxury items (cars, cigarettes)

New rates: 2.5% (unpacked food), 9% (select services)

🎯 What is Input Tax Credit (ITC)?

ITC allows businesses to claim credit for GST paid on purchases against GST collected on sales.

Example:

• Purchased goods: ₹10,000 + ₹1,800 GST

• Sold goods: ₹20,000 + ₹3,600 GST

• Net GST to pay: ₹3,600 - ₹1,800 = ₹1,800

✓ You save ₹1,800 through ITC!

⚠️ What is Reverse Charge Mechanism (RCM)?

Under RCM, the buyer pays GST instead of the seller. Applicable in specific cases.

When RCM applies:

• Purchase from unregistered supplier

• Import of services

• Specific notified goods/services

• GTA (Goods Transport Agency) services

Example: Lawyer fees, Advocate services, Director fees

💼 What is GST Composition Scheme?

Simplified tax scheme for small businesses with turnover up to ₹1.5 crores.

Tax Rates:

• Manufacturers: 1% of turnover

• Restaurants: 5% of turnover

• Traders: 1% of turnover

Benefits: Simple compliance, quarterly returns

⚠️ Cannot claim ITC or make inter-state supplies

🔍 How to find GST rate for my product?

Use HSN (Harmonized System of Nomenclature) code to find the correct GST rate.

Steps:

1. Find HSN code for your product (8-digit)

2. Check CBIC GST rate schedule

3. Or search on gst.gov.in portal

💡 Tip: HSN code first 2-4 digits indicate category
Example: 0901 = Coffee, Tea, Spices

📱 What are GST-exempt goods and services?

Several essential items and services are completely exempt from GST.

Exempt Items:

• Fresh fruits, vegetables, milk, curd, buttermilk

• Educational services (up to higher secondary)

• Healthcare services (government hospitals)

• Agricultural produce, farming services

• Postal services, judicial services

Note: List subject to GST Council changes

⚠️ Important Disclaimer

Calculation Accuracy: This GST calculator provides estimates based on the standard GST formulas prescribed by the Central Board of Indirect Taxes and Customs (CBIC), Government of India. While we strive for 100% accuracy, the calculator is designed for informational and educational purposes only.

Rate Changes: GST rates and rules are subject to periodic revisions by the GST Council. The rates mentioned on this page were accurate as of October 21, 2025. For the most current GST rates, please verify with official sources at gst.gov.in or cbic.gov.in.

Not Professional Advice: This calculator does not constitute professional tax, legal, or financial advice. Results may vary based on specific business circumstances, including:

  • Reverse Charge Mechanism (RCM) applicability
  • Composition scheme eligibility and implications
  • Input Tax Credit (ITC) adjustments
  • Special provisions for specific sectors (real estate, banking, insurance)
  • Export/Import scenarios and IGST refunds
  • E-invoicing requirements for businesses with turnover > ₹5 crores

Professional Consultation: For complex GST scenarios, filing GST returns, claiming Input Tax Credit, or compliance matters, we strongly recommend consulting a qualified Chartered Accountant (CA), GST practitioner, or tax professional who can provide advice tailored to your specific situation.

No Liability: CalcWise.Finance and its operators shall not be held liable for any errors, omissions, or damages arising from the use of this calculator. Users assume full responsibility for verifying calculations and ensuring compliance with current GST laws.

📚 Official Resources

📞 GST Helpline

  • • Toll-Free: 1800-103-4786
  • • Available: 8 AM - 8 PM
  • • Email: helpdesk@gst.gov.in

🔄 Last Updated

  • • Calculator: October 21, 2025
  • • GST Rates: As per 56th GST Council meeting
  • • Next Review: Quarterly

CalcWise GST Calculator is a free online tool designed for Indian businesses, traders, freelancers, and consumers to calculate Goods and Services Tax accurately. Whether you need to add GST to your base price or remove GST from the final price, our calculator provides instant results with CGST, SGST, and IGST breakdowns. Perfect for creating invoices, pricing products, filing GST returns, and understanding tax implications.

GST governed by CBIC — cbic.gov.in. File returns at gst.gov.in. GST Council: gstcouncil.gov.in.

Updated regularly to reflect the latest GST Council decisions and CBIC notifications. Trusted by users including CAs, accountants, small business owners, and e-commerce sellers across India.

Frequently Asked Questions — GST Calculator India India 2025-26

What is GST and how many slabs are there?+
GST (Goods and Services Tax): India's unified indirect tax. 4 main slabs: 0% (essentials — milk, vegetables, books); 5% (necessities — packaged food, edible oil); 12% (processed food, medicine, clothing below ₹1K); 18% (most services, electronics, restaurant AC); 28% (luxury — cars, cement, tobacco). Special rates for gold (3%), EV (5%), diamonds (1.5%).
How to calculate GST on a price?+
GST calculation: If price is exclusive of GST: GST amount = Price × GST%/100. Total price = Price + GST. If price includes GST: GST amount = (Price × GST%) / (100 + GST%). Original price = Price − GST amount. Example: ₹1,000 + 18% GST: GST = ₹180, total = ₹1,180. Reverse: ₹1,180 inclusive of 18%: GST = ₹1,180 × 18/118 = ₹180.
What is CGST, SGST, and IGST?+
CGST (Central GST): collected by Central govt on intra-state transactions. SGST (State GST): collected by state govt on intra-state transactions. IGST (Integrated GST): collected by Centre on inter-state transactions. Total GST = CGST + SGST (intra-state) or IGST (inter-state). Example: 18% GST intra-state = 9% CGST + 9% SGST. Inter-state = 18% IGST.
What is Input Tax Credit (ITC) in GST?+
ITC: businesses can claim credit for GST paid on inputs and use it to offset GST payable on output. Net GST payable = Output GST − ITC. ITC cannot be claimed on: personal expenses, food/beverages (unless catering business), motor vehicles (non-business). ITC avoids tax on tax (cascading effect). GST return must match supplier's returns for ITC claim.
Who must register for GST in India?+
Mandatory GST registration: businesses with aggregate turnover above ₹40L (goods, most states); ₹20L (services, or specified states); ₹10L (special category states like Manipur, Nagaland). Also mandatory: inter-state suppliers regardless of turnover; e-commerce operators; non-residents making taxable supplies. Voluntary registration available for turnover below threshold.
What is Composition Scheme under GST?+
Composition Scheme: simplified GST for small businesses with turnover ≤₹1.5Cr (₹75L in specified states). Rates: 1% for traders/manufacturers; 5% for restaurants. Benefits: file quarterly returns; lower compliance burden; pay flat rate on turnover. Drawbacks: cannot issue tax invoices; cannot claim ITC; cannot supply goods/services inter-state. Not available for service providers (except restaurant).
What is GST HSN code?+
HSN (Harmonized System of Nomenclature) code: 8-digit international code for goods classification. In GST: businesses with turnover above ₹5Cr: 6-digit HSN mandatory. ₹1.5Cr–₹5Cr: 4-digit HSN. Below ₹1.5Cr: 2-digit HSN or none. HSN determines the GST rate applicable. Wrong HSN code = wrong rate applied = notices and penalties. Look up HSN codes on CBIC portal (cbic.gov.in).
What GST applies on services?+
Most services: 18% GST. 5%: transport, restaurant (non-AC, non-alcohol), economy class airfare. 12%: business class airfare, work contracts (residential). 18%: hotels (room rent ₹2,500–₹7,500/night), IT services, banking, insurance. 28%: hotels (room rent above ₹7,500/night), casinos, race clubs. 0%: healthcare, education (general), banking interest.
How to file GST return in India?+
GST return types: GSTR-1: outward supply details — monthly (if turnover >₹5Cr) or quarterly. GSTR-3B: summary return and tax payment — monthly. GSTR-9: annual return. File at gst.gov.in. Penalty for late filing: ₹50/day (₹20/day for nil returns) up to ₹10,000 per return + interest 18%/year on late tax payment. ITC blocked if GSTR-3B is overdue.
What is reverse charge mechanism in GST?+
Reverse Charge Mechanism (RCM): recipient (buyer) pays GST instead of supplier. Applies to: purchases from unregistered dealers (for certain categories); specified services (e.g., GTA services, advocate fees, director remuneration, import of services). RCM amount must be paid in cash — ITC cannot be used to pay RCM GST. Separate invoices required for RCM.
Is GST applicable on e-commerce in India?+
Yes — e-commerce sellers registered on platforms (Amazon, Flipkart etc.) must be GST registered regardless of turnover. E-commerce operators collect TCS (Tax Collected at Source) at 1% on net taxable supplies. Sellers file GSTR-8 (operators). GST on commission charged by platform: 18% on platform fee. Dropshippers, small sellers: mandatory registration even if turnover below ₹40L threshold.
What is GST on gold and jewellery?+
GST on gold: 3% on gold (making charges: 5% if separate, 3% if included in gold price). Gold coins, jewellery: 3%. Diamonds: 0.25% on rough; 1.5% on cut and polished. Silver: 3%. GST on exchange of old gold: only on making charges or difference in value (depending on transaction structure). Import duty on gold: 15% + 3% GST = effective 18.45%.
What is GST on real estate?+
Affordable housing (value ≤₹45L, carpet area ≤60 sqm metro/90 sqm non-metro): 1% GST (no ITC). Other under-construction: 5% (no ITC). Commercial property under construction: 12%. Ready-to-move/completed properties: no GST (it's exempt). Land sale: no GST. Stamp duty: separate state levy. Joint Development Agreement: GST on developer's portion at applicable rate.
GST on health insurance premium?+
Health insurance premium: 18% GST. Life insurance premium: 18% GST on term insurance; lower for endowment (mixed — depends on composition). However: GST paid on health insurance premium is included in the premium for Section 80D calculation — so 80D deduction covers the total premium including GST. E.g., premium ₹10,000 + ₹1,800 GST = ₹11,800 total, all ₹11,800 counts for 80D.
What is GST on mobile phones?+
Mobile phones: 12% GST (reduced from 18% in 2020). Chargers, accessories: 18%. Battery bank: 18%. Smartwatches: 18%. Note: mobile companies like Apple/Samsung price phones ex-GST; consumer pays final price including GST. Import duty on smartphones: 20% + 12% GST = significant protection for domestic manufacturing.
What are penalties for GST non-compliance?+
Late payment interest: 18%/year. Late filing fee: ₹50/day per return (₹20/day nil returns) up to ₹10,000. Tax evasion: 100% penalty (minimum). False invoicing: ₹10,000 or 100% of tax — whichever higher. Failure to register: penalty = 10% of tax or ₹10,000. Imprisonment: up to 5 years for fraud above ₹5Cr. Regular audits and notices from GST department via GSTIN portal.
What is GST on restaurant food?+
GST on restaurants: Non-AC, no alcohol license: 5% (no ITC). AC restaurants or those with alcohol license: 5% (no ITC) — same rate since 2019. Standalone takeaway: 5%. Hotel restaurants (room tariff above ₹7,500/night): 18% with ITC. Food delivery apps: 5% GST collected at source. Home delivery: 5%. Canteen services: 5%.
How to calculate GST for export?+
Exports of goods/services: Zero-rated under GST (0% GST with full ITC benefit). Exporters can: (1) Export under bond/LUT and claim ITC refund; or (2) Pay IGST and claim refund. Refund: claimed via GST portal, processed within 60 days. Export of services (e.g., IT services to foreign clients): zero-rated if payment in foreign exchange.
What is GST on freelancers / consultants?+
Freelancers/consultants providing services: GST registration mandatory if turnover above ₹20L (₹10L in specified states). Rate: 18% on professional services. Export of services to foreign clients: zero-rated. File GSTR-1 (quarterly if <₹5Cr) and GSTR-3B. Can claim ITC on business expenses. Composition scheme not available for pure service providers.
How do I verify GST number (GSTIN)?+
GSTIN verification: visit gst.gov.in → Search Taxpayer → Search by GSTIN/UIN. GSTIN format: 15 digits — first 2 digits = state code; next 10 = PAN; 13th digit = entity number; 14th = Z; 15th = checksum. Always verify supplier GSTIN before claiming ITC — fake GSTINs result in ITC disallowance and penalties.