What is the difference between CGST, SGST, UTGST, and IGST?

For transactions within the same state (Intra-state supply), GST is divided equally between Central GST (CGST) and State GST (SGST/UTGST). For example, an 18% GST rate splits into 9% CGST and 9% SGST. For transactions between two different states (Inter-state supply), Integrated GST (IGST) is charged in full at 18% and collected by the Central Government.

What are the standard GST rate slabs in India?

India operates under four primary tax slabs: 5% (essential commodities, clothing under ₹1,000), 12% (processed foods, clothing above ₹1,000), 18% (standard rate for IT/SaaS services, electronics, courier shipping), and 28% (luxury items, automobiles, air conditioners). A 3% special slab applies to gold and jewelry, and 0% applies to essential unbranded agricultural goods.

What is the GST registration threshold for businesses in India?

For businesses selling physical goods, the mandatory GST registration threshold is an annual aggregate turnover of ₹40 Lakhs (₹20 Lakhs in Special Category North Eastern and hill states). For service providers and ecommerce marketplace sellers, the threshold is ₹20 Lakhs (₹10 Lakhs in Special Category states). However, ecommerce sellers who supply goods across state borders must register mandatorily.

What is an HSN code and a SAC code?

HSN (Harmonized System of Nomenclature) is a 6-to-8 digit code used internationally and in India to classify physical goods for taxation. SAC (Services Accounting Code) is a 6-digit code issued by CBIC to classify services. Including correct HSN/SAC codes on tax invoices is mandatory under GST rules.

What is the Reverse Charge Mechanism (RCM) under GST?

Under normal GST rules, the supplier collects tax from the buyer and pays it to the government. Under the Reverse Charge Mechanism (RCM), the liability to pay GST is shifted to the recipient of the goods or services (for instance, when buying from unregistered suppliers, hiring legal counsel, or utilizing Goods Transport Agency (GTA) freight services).

GST Calculator India (Add & Remove GST)

Interactive Real-time GST Engine

Add GST to Net Amount

Pre-Tax Taxable (Net) Amount (₹)Enter in INR (₹)

₹

Quick Add:

Quantity (Units)Items

Select Indian GST Rate SlabActive: 18% GST

Custom Rate:

(e.g., 0.25% uncut diamonds, special cess)

Total Invoice (Gross) Amount

₹1,180

Total GST Calculated

+₹180

Effective Rate: 18%

Pre-Tax Net Amount (Taxable)

₹1,000

Base value before tax

CGST (9%)Central Govt

₹90

50% of total GST

SGST / UTGST (9%)State Govt

₹90

50% of total GST

Formula: ₹1,000 (Taxable) + 18% GST (₹180) = ₹1,180 (Gross Total)

Multi-Item GST Tax Invoice Builder

Add multiple products or billable services to generate a compliant GST tax invoice preview

Transaction Supply Location:

#1 Item Description

HSN / SAC

Qty

Unit Price (₹)

GST %

Total (₹)₹5,900

#2 Item Description

HSN / SAC

Qty

Unit Price (₹)

GST %

Total (₹)₹1,680

#3 Item Description

HSN / SAC

Qty

Unit Price (₹)

GST %

Total (₹)₹1,003

Total Taxable Amount:₹7,350

Total CGST:₹616.5

Total SGST / UTGST:₹616.5

Combined GST Amount:+₹1,233

Grand Total Invoice Value (₹):₹8,583

Popular Ecommerce HSN & SAC Code Rates

Reference standard GST slabs for retail goods (HSN) and professional services (SAC)

SAC 998318% GST

Software & IT Consulting

IT & SaaS Software

SaaS subscriptions, cloud hosting, web development, digital services

Standard Slab

SAC 996818% GST

Courier & Postal Services

Logistics & Freight

Domestic express courier, air freight logistics, 3PL fulfillment

Standard Slab

HSN 62035% GST

Apparel (Under ₹1,000)

Fashion & Apparel

Men's & women's cotton shirts, t-shirts, trousers under ₹1,000 retail

Standard Slab

HSN 620412% GST

Apparel (Above ₹1,000)

Fashion & Apparel

Designer apparel, suits, jackets, and clothing items priced above ₹1,000

Standard Slab

HSN 851718% GST

Smartphones & Gadgets

Electronics

Smartphones, earphones, smart watches, communication devices

Standard Slab

HSN 71133% GST

Gold & Silver Jewelry

Precious Metals

Fine jewelry, gold ornaments, silver articles

Standard Slab

HSN 210612% GST

Packaged Health Foods

Food & Supplements

Protein powders, packaged dietary supplements, sweetmeats

Standard Slab

HSN 870328% GST

Motor Cars & Luxury Vehicles

Automotive

Passenger cars, racing vehicles, high-end motor vehicles

Standard Slab

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India GST Taxation Guide: Formulas, Rules, and Compliance

Everything ecommerce sellers, retailers, and freelancers need to know about Indian GST

1. How to Calculate GST (Formulas Explained)

Depending on whether your product price is pre-tax (exclusive) or MRP (inclusive), use the appropriate formula:

To Add GST (GST Exclusive)GST Amount = (Net Taxable Amount × GST Rate) ÷ 100Gross Total = Net Amount + GST AmountExample: ₹1,000 + 18% GST = ₹180 tax. Total = ₹1,180.

To Remove GST (Reverse / Inclusive)Taxable Amount = Gross Total ÷ (1 + GST Rate / 100)GST Amount = Gross Total − Taxable AmountExample: ₹1,180 ÷ 1.18 = ₹1,000 pre-tax base, and ₹180 tax.

2. CGST, SGST, UTGST, and IGST: Understanding the Split

The Goods and Services Tax in India is a destination-based consumption tax. Taxes are split depending on where the buyer and seller are located:

Intra-State Supply (Within Same State)

When the seller and buyer are in the same Indian state (e.g. seller in Mumbai, buyer in Pune):
• CGST (Central GST): 50% of applicable tax
• SGST (State GST): 50% of applicable tax
For an 18% slab, 9% goes to the Central Government and 9% goes to the State Government.

Inter-State Supply (Between Different States)

When the seller and buyer are in different states (e.g. seller in Bengaluru, buyer in Delhi):
• IGST (Integrated GST): 100% of applicable tax
The Central Government collects the full 18% IGST and transfers the state share to the consumer state.

3. Mandatory Invoicing Requirements for Online Sellers

Under Rule 46 of the CGST Rules, every tax invoice issued by an Indian business must contain:

Sequential Invoice Number: Must be unique for the financial year.
GSTIN: 15-digit GST Identification Number of supplier and recipient (for B2B).
HSN / SAC Code: 4 digits for turnover up to ₹5 Cr, 6 digits for turnover above ₹5 Cr.
Place of Supply & State Code: State name and 2-digit numerical state code (e.g. 27 for Maharashtra, 29 for Karnataka).
Itemized Tax Split: Explicitly displaying taxable value, CGST, SGST, or IGST columns.

Frequently Asked Questions

Clear answers regarding Indian GST slabs, invoicing, and tax calculations

To add GST (Exclusive): Multiply the net taxable amount by the GST rate percentage and divide by 100 (e.g. ₹1,000 × 18% = ₹180 GST; Gross = ₹1,180). To remove GST (Inclusive / Reverse GST): Divide the gross amount by (1 + GST rate / 100) to find the pre-tax value (e.g. ₹1,180 ÷ 1.18 = ₹1,000 taxable value, and ₹180 GST).