Goods and Services Tax
GST stands for Goods and Services Tax. It is an indirect tax that was introduced in India on 1st July 2017. This tax is applied to the sale of goods and services and has replaced many older taxes like VAT, excise duty, and service tax. GST brings a single, unified tax system across the country, making it easier for both businesses and consumers.
How to Calculate GST Using This Tool?
With our free GST calculator, finding the GST amount is quick and easy. You only need to follow three simple steps:
- Enter the Amount – Type in the price of the product or service.
- Select the GST Rate – Choose the correct GST percentage (0%, 5%, 12%, 18%, or 28%).
- Choose Price Type – Decide whether your price is inclusive or exclusive of GST.
- If the price is inclusive of GST, the calculator will show you the actual value of the product or service before tax, along with the GST amount.
- If the price is exclusive of GST, the calculator will add GST to the base price and show you the final amount.
This tool does all the math for you instantly, saving time and effort.
GST Tax Slabs
The main goal of GST is to create uniformity in tax collection across India. Under this system, tax is applied only at the final stage of the sale of goods or services, instead of multiple taxes at different levels.
GST has five main tax slabs:
- 0%
- 5%
- 12%
- 18%
- 28%
Different products and services fall under different slabs based on their category and usage.
Types of GST in India
In India, the Goods and Services Tax (GST) system is divided into four main types, based on where the supply of goods or services takes place. Each type serves a different purpose and is collected by either the central or state governments.
1. CGST – Central Goods and Services Tax
CGST is collected by the central government when a sale of goods or services happens within the same state (intra-state).
It is governed by the CGST Act and is charged alongside SGST. Usually, CGST and SGST are equal in percentage for a particular transaction.
2. SGST – State Goods and Services Tax
SGST is collected by the state government for the intra-state supply of goods and services.
It is governed by the SGST Act and is applied together with CGST. The tax amount is equally shared — for example, if GST is 18%, then 9% is CGST and 9% is SGST.
3. IGST – Integrated Goods and Services Tax
IGST is used for inter-state transactions, meaning when goods or services are sold from one state to another.
It is also applied to imports.
The central government collects IGST, and later distributes the appropriate share to the destination state.
4. UTGST – Union Territory Goods and Services Tax
UTGST is similar to SGST but is applicable in Union Territories like Delhi, Chandigarh, Lakshadweep, etc.
When a transaction occurs within a Union Territory, UTGST is charged along with CGST.
It is governed by the UTGST Act.
Summary Table
| GST Type | Collected By | Applies To | Paired With |
|---|---|---|---|
| CGST | Central Government | Intra-state transactions | SGST or UTGST |
| SGST | State Government | Intra-state transactions | CGST |
| IGST | Central Government | Inter-state & Imports | — |
| UTGST | Union Territory Govt. | Intra-UT transactions | CGST |
Also Check:
- All Types of Full Form in GST
- How to check GST number: Step-by-Step
- GST on Rent in India: A Comprehensive Guide
- How Does GST Return Penalty Work
Frequently Asked Questions
What are the different types of GST?
There are four types of GST in India: CGST (Central), SGST (State), IGST (Integrated), and UTGST (Union Territory). These are applied depending on whether the sale is within a state, between states, or in a union territory. Each is collected by different governments as per rules.
How does CGST and SGST work together?
When a product or service is sold within the same state, GST is split equally into CGST and SGST. For example, if GST is 18%, then 9% goes to the central government (CGST) and 9% goes to the state government (SGST). This helps in fair tax sharing.
What is IGST and when is it applied?
IGST is used when goods or services are sold between two different states or when importing products into India. IGST is collected by the central government and later distributed to the state where the goods are used. It ensures smooth tax handling across state borders.
What is UTGST and where is it used?
UTGST stands for Union Territory Goods and Services Tax. It is used when goods or services are sold within any of the seven union territories of India. UTGST is charged along with CGST and is collected by the union territory’s administration, not by a state government.
What are the GST rate slabs in India?
GST is divided into five tax rate slabs: 0%, 5%, 12%, 18%, and 28%. Different items fall under different rates. Essential items like food grains may have 0%, while luxury items and certain services may attract 28%. These rates help in fair tax distribution.