the guide
How to calculate GST: add or remove GST from any price
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
Goods and Services Tax (GST) is charged on most goods and services sold in India. Businesses add GST to their selling price and pass it on to the government, after claiming credit for GST paid on their own purchases.
Since 22 September 2025, most items fall under two main rates — 5% and 18% — with a 40% rate for luxury and ‘sin’ goods, some items exempt (0%) and special rates for a few such as gold (3%). Always confirm the rate for your specific product or service code (HSN/SAC).
the formula
GST to add = Price × Rate ÷ 100 · Price without GST = Total × 100 ÷ (100 + Rate)
- · Within a state, GST is split equally into CGST (central) and SGST (state).
- · Between states, the full amount is charged as IGST.
- · To remove GST, don't subtract the rate from the total — divide by (100 + rate) instead.
Worked example
- Adding 18% GST to ₹10,000: GST = ₹1,800, total = ₹11,800.
- Within the state that's CGST ₹900 + SGST ₹900; to another state it's IGST ₹1,800.
- Removing 18% GST from ₹1,180: base = 1,180 × 100 ÷ 118 = ₹1,000, GST = ₹180.
- Common mistake: 18% of ₹1,180 is ₹212, which overstates the tax.
Tips
- 1Show both pre-GST and GST-inclusive prices clearly on quotes to avoid disputes.
- 2Check rates whenever the GST Council announces changes.
- 3Claim input tax credit on eligible business purchases to reduce your GST payable.
- 4Keep invoices with GSTIN, HSN/SAC code, rate and tax amount for every sale.
Frequently asked questions
What are the current GST rates in India?
Since 22 September 2025 the main rates are 5% and 18%, with 40% for luxury and sin goods. Some goods are exempt and a few have special rates, such as 3% on gold.
How do I remove GST from a total amount?
Divide the total by (100 + GST rate) and multiply by 100. For example, ₹1,180 including 18% GST has a base price of ₹1,000.
What is the difference between CGST, SGST and IGST?
For sales within a state, GST is split equally into Central GST and State GST. For sales between states, it is charged as Integrated GST.
Who needs to register for GST?
Generally businesses whose turnover exceeds the threshold (₹40 lakh for most goods suppliers and ₹20 lakh for services, lower in some states), and certain others such as inter-state and e-commerce sellers. See our India compliance guide and confirm with a professional.