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India GST Rate Reference (2024-25)
India's Goods and Services Tax uses a 4-slab structure: 5%, 12%, 18%, and 28%. A separate category covers exempt / zero-rated goods. The rate that applies depends on the HSN (Harmonised System of Nomenclature) code for goods or the SAC (Services Accounting Code) for services.
| GST Rate | CGST / SGST split | Common examples |
|---|---|---|
| 0% (Exempt) | — | Fresh vegetables, milk, eggs, bread, books, educational services, healthcare |
| 5% | 2.5% + 2.5% | Packaged food, footwear under ₹1,000, economy hotels, rail/air (economy class) |
| 12% | 6% + 6% | Processed food, mobile phones, business class travel, work contracts |
| 18% | 9% + 9% | IT/software services, most manufactured goods, restaurants (AC), financial services |
| 28% | 14% + 14% | Luxury cars, ACs, large TVs, cement, tobacco, aerated drinks, casinos |
For inter-state transactions, IGST (Integrated GST) applies at the full rate instead of splitting into CGST + SGST. IGST is administered by the Central Government and later apportioned to the destination state.
Add vs Remove GST: The Formulas
The two most common GST calculations are adding GST to a base price (for invoicing) and removing GST from an inclusive price (for finding the pre-tax cost from an MRP or quoted price).
Adding GST
GST = Base × Rate / 100
Total = Base + GST
Example: ₹10,000 + 18% GST = ₹10,000 + ₹1,800 = ₹11,800
Removing GST (Reverse)
Base = Total / (1 + Rate/100)
GST = Total − Base
Example: ₹11,800 inclusive at 18% → Base = ₹10,000, GST = ₹1,800
The reverse calculation (removing GST) is used when a price is quoted inclusive of tax and you need the taxable value for your books, or when claiming Input Tax Credit (ITC) on a purchase.
Want the full GST guide — ITC, filing, and registration?
Our guide explains input tax credit, who must register, and key filing deadlines.
Source: GST Council of India (gst.gov.in). Rates verified against the GST Act for FY 2024-25. Last reviewed: October 2025.