GST Explained Simply: Slabs, Inclusive vs Exclusive & How to Calculate It

The Goods and Services Tax (GST) is an indirect tax on the supply of goods and services in India. It replaced a web of older taxes with a unified system.

Common GST slabs

• 5% — essential items and some services
• 12% — standard goods and services
• 18% — most goods and services (the most common slab)
• 28% — luxury and "sin" goods

Exclusive vs inclusive pricing

GST-exclusive: tax is added on top of the base price. If a product costs ₹1,000 and GST is 18%, you pay ₹1,180.

GST-inclusive: the displayed price already contains tax. To find the base price from an inclusive amount, divide by (1 + rate). For ₹1,180 at 18%: base = 1180 / 1.18 = ₹1,000, and GST = ₹180.

Quick calculation

Add GST: GST amount = base × rate%. Remove GST: base = inclusive / (1 + rate%).

Skip the maths with our GST Calculator — it handles both add and remove modes instantly.

GST rules change over time. Confirm current rates and rules with official sources or a tax professional.