GST Calculator - GST is a tax system of the Indian government, where the generated revenue is used for infrastructure, healthcare, education, defence and other public services. It replaced VAT, service tax and excise duty to make one nation, one tax. In September 2025, GST 2.0 reforms simplified the tax system into just three slabs: 5%, 18% and 40%.
In this page, you will find a complete GST rates table with all goods and services, item-wise GST lists for daily essentials, agriculture, healthcare, automobiles, electronics, sin and luxury goods, and a detailed FAQ section answering common questions. You can also try our free GST calculator online to calculate GST instantly, whether inclusive or exclusive.
| Slab | Rate | Examples |
|---|---|---|
| Merit | 5% | Daily essentials, dairy, agriculture goods, medicines, household products |
| Standard | 18% | Most goods and services, electronics, cars, packaged foods, services |
| Demerit / Luxury | 40% | Pan masala, tobacco, caffeinated drinks, luxury vehicles, betting & gambling |
Essentials are kept at a low GST rate so that common citizens are not burdened. Products like milk, butter, ghee, cheese, edible oil, bread, biscuits, toothpaste, soaps, shampoo, and household utensils fall in the 5% slab. This also includes baby products like napkins, diapers, feeding bottles.
Farmers are the backbone of India, so most agricultural machinery and inputs are taxed at just 5%. Examples: tractors, tractor parts, irrigation systems, pesticides, micronutrients, fertilizers. The aim is to reduce the cost of farming and encourage productivity.
Healthcare is given maximum relief. Many lifesaving drugs are Nil rated. Health and life insurance are exempt. Items like thermometers, diagnostic kits, medical oxygen, glucometers, spectacles are taxed at 5%. This makes treatment affordable.
Small cars, two-wheelers up to 350cc, three wheelers, goods transport vehicles attract 18% GST. But luxury cars, SUVs, and big motorbikes above 350cc attract 40% GST as they are considered luxury goods. This way, essential mobility is cheaper, while luxury is taxed higher.
Common household appliances like air conditioners, refrigerators, washing machines, televisions, projectors, mobile phones, computers all attract 18% GST. This ensures the government earns revenue from fast-growing consumer electronics without overburdening daily essentials.
Items harmful to health or considered luxury are taxed at the highest rate. Examples: pan masala, gutka, tobacco, alcohol substitutes, caffeinated drinks, carbonated beverages, casinos, online gaming, betting, gambling, luxury yachts and aircraft. These are heavily taxed both for revenue and discouragement.
Books, notebooks, maps, charts, pencils, crayons and other learning items are kept at Nil GST to support education. Schools and students benefit from lower costs.
GST means Goods and Services Tax. It is a single indirect tax system that replaced VAT, excise and service tax. It applies to most goods and services. The government uses the money for roads, hospitals, schools, defence, digital growth and welfare schemes.
From 22 September 2025, GST in India has only three slabs: 5% for essentials, 18% for standard goods and services, and 40% for sin and luxury goods. Earlier 12% and 28% were removed in GST 2.0 reforms.
Formula: GST = (Amount × GST Rate) ÷ 100. Example: For ₹1000 at 18%, GST = ₹180, total = ₹1180.
You can also use our online GST calculator for inclusive and exclusive values.
Reverse GST means calculating the base price from an amount that already includes GST. Formula:
Base = Amount ÷ (1 + GST/100). Example: If ₹1180 includes 18% GST, base = ₹1000 and GST = ₹180.
Any business with turnover above ₹40 lakh (goods) or ₹20 lakh (services) must register and pay GST. Also, freelancers, consultants, e-commerce sellers and interstate suppliers are required to comply.
Yes. Items like fresh fruits, vegetables, milk, bread, education services, healthcare services and life insurance are either nil rated or exempt. Some medicines are also exempted to support healthcare.
GST inclusive means the price already has GST inside it. Exclusive means GST will be added on top of the base price. Example: ₹1180 inclusive of 18% = base ₹1000 + GST ₹180. ₹1000 exclusive + 18% GST = ₹1180.
For intra-state supply, GST is divided as CGST (central) and SGST (state). For inter-state supply, IGST is collected by the centre and later shared with the state.
Small taxpayers with turnover under ₹1.5 crore can pay GST at a fixed rate like 1.5% or 5% on turnover instead of normal GST. This reduces compliance burden.
Yes, if annual income crosses ₹20 lakh. Many IT freelancers, designers and consultants must register if they supply taxable services, especially if clients need GST invoices.
Yes. E-commerce platforms collect and deposit GST on your purchases. Rates depend on the product category, as per GST slabs (5%, 18% or 40%).
Gold jewellery attracts 3% GST, which is a special rate outside the main slabs. Diamonds below 0.25 carats may be nil rated if imported under certain schemes.
Over and above GST, some goods like tobacco, aerated drinks, coal and luxury cars attract compensation cess which can range from 1% to over 200%.
Businesses can claim credit for GST paid on purchases, called ITC. This reduces tax burden and avoids double taxation. For example, if you paid ₹100 GST on raw material and collected ₹180 GST on sales, you pay only ₹80.
GST makes India a single market, reduces corruption, simplifies taxation, avoids double taxes, increases compliance, and promotes digital billing and transparency.
