Examples of GST Rates
Category
|
Previous GST Rate
|
New GST Rate (Effective Sept 22, 2025)
|
Educational services
|
0%
|
0%
|
Fresh milk and eggs
|
0%
|
0%
|
Life and health insurance policies
|
18%
|
0%
|
Rough diamonds
|
0.25%
|
0.25%
|
Gold and silver
|
3%
|
3%
|
Sugar, tea, and baby food milk products
|
5%
|
5%
|
Packaged food items (e.g., biscuits, snacks)
|
12%
|
5%
|
Everyday goods (soaps, oils, shampoos)
|
18%
|
5%
|
Electronics and furniture
|
18% (most items), 28% (large TVs/ACs)
|
18%
|
Services (telecom, banking, professional)
|
18%
|
18%
|
Cement
|
28%
|
18%
|
Unmanufactured tobacco
|
28% + additional cess
|
40%
|
Luxury cars (>1500cc) & motorcycles (>350cc)
|
28% + additional cess
|
40%
|
Aerated drinks & sugary beverages
|
28%
|
40%
|
Explore complete list of GST Rates Here: GST rates in India - Everything you need to know
About GST Calculator
A Goods and Service Tax Calculator is a ready-to-use online tool that helps you figure out how much GST you owe for a month or quarter, depending on the goods. The GST calculator is good for people who buy, sell, and conduct various kinds of business. Using a simplified Goods and Service Tax Calculator online helps you figure out the gross or net price of a product depending on the amount and gives you a breakdown of the percentage-based GST rates. It helps divide the rate between the central goods and services tax (CGST) and the state goods and services tax (SGST) or figure out the correct IGST.
How to use the Bajaj Finserv GST Calculator?
Follow these steps to calculate the GST amount:
Step 1: Select User Type:
Choose Buyer if you are a consumer, distributor, importer, or purchasing goods/services
Choose Seller (Manufacturer, Wholesaler, or Retailer) if you are selling goods/services
Step 2: Enter the Required Details:
For Buyers:
Enter the Net Price (price before GST)
Select the applicable GST Rate (5%, 18%, or 40%)
For Sellers:
Enter the Cost of Goods or Production Cost
Enter your Profit Margin percentage
Select the applicable GST Rate
Step 3: Check the Results:
- The calculator will show:
- GST amount
- Total price including GST
- Breakdown of CGST, SGST, or IGST, depending on the transaction type
Advantages of GST Calculator
Here's why utilising an online GST calculator can be advantageous:
Ease of use and time-saving: Online GST calculators offer simplicity and speed, delivering instant results without the need for manual computations, thus saving time.
Accuracy: These calculators minimize the chances of errors inherent in manual calculations, ensuring precise results.
Breakdown of tax components: Taxpayers can accurately determine individual amounts for CGST, SGST, and IGST, which can be challenging to calculate manually using the GST tax formula.
Estimation of gross price: Users can also estimate the gross price for their chosen items, providing a comprehensive understanding of their tax obligations.
Once taxpayers have grasped their tax liabilities and have all the necessary details regarding their GST-related transactions, it's essential to file GST return within the stipulated due dates. Failure to comply with these regulations may result in additional charges.
How does the GST calculator work?
The GST Calculator operates based on a straightforward formula:
GST Amount = (Selling Price x GST Rate) / 100.
Here, the Selling Price is determined by adding the Cost Price and Profit Amount. The calculator factors in the Selling Price, representing the total value of goods or services subject to GST, and the GST rate, which fluctuates based on the nature of the goods or services.
The Total Selling Price is then computed by adding the Selling Price, GST Amount, and, if applicable, Cess Amount.
How can a GST calculator help you?
A GST calculator can help you in many ways, such as:
- Calculate the GST amount and the net price of goods and services based on the GST rate and the original price. This can save you time and hassle by doing the GST calculation for you quickly and accurately.
- Understand the GST structure and rates better and plan your budget accordingly. You can choose from different GST rates and categories, such as CGST, SGST, IGST, and UTGST, and see how they affect the GST amount and the net price.
What is GST (Goods and Services Tax)?
Goods and Services Tax or GST is a dynamic taxation system that is implemented in India. It simplifies and unifies the indirect taxation across the country through a comprehensive tax structure that includes goods and services under a singular tax slab. GST is designed to replace all indirect taxes and aims to remove tax barriers that existed between states. It has helped in enhancing the ease of doing business and creating a level playing field for businesses across the country. With the implementation of GST, businesses can avail numerous benefits such as better compliance, a significant reduction in tax evasion, and streamlined tax procedures. It has also helped to increase transparency and boost economic growth. Therefore, if you are looking for an unsecured business loan, then knowledge of GST is critical for a successful loan application process.
What is GST inclusive amount?
The GST inclusive amount is the total cost of goods or services that includes the Goods and Services Tax (GST) in India. Understanding the GST inclusive amount allows you to plan their finances accurately by factoring in the additional cost of GST. By taking this approach, you can make informed financial decisions and avoid unnecessary financial burden.
What is the GST exclusive amount?
The GST exclusive amount refers to the cost of goods or services without the inclusion of the Goods and Services Tax (GST) in India. It is important for you to understand the GST exclusive amount when making purchases to accurately calculate the total expenditure.
What is GSTIN?
GSTIN stands for Goods and Services Tax Identification Number. It is a unique 15-digit alphanumeric code assigned to every person or entity that is registered under the Goods and Services Tax (GST) regime in India. The GSTIN is based on the PAN (Permanent Account Number) of the taxpayer and contains information such as the state code, registration number, entity code, checksum digit, and defaulting status.
The GSTIN is used for various GST-related procedures, such as filing returns, claiming input tax credits, and making payments. The GSTIN verification can be done online on the official GST portal. The GSTIN helps to ensure transparency and compliance in the GST system and prevent tax evasion.
Tax components under GST
There are 4 components of GST:
Central Goods and Services Tax (CGST): Under GST, intra-state transactions are subject to the Central Goods and Services Tax (CGST), an indirect tax.
State Goods and Services Tax (SGST): Intra-state transactions related to the supply of goods and services are subject to this tax. Each respective state government is responsible for collecting this.
Union Territory Goods and Services Tax (UTGST): This is an indirect tax levied on the intra-state supplies of goods and services.
Integrated Goods and Services Tax (IGST): This is a separate tax included under GST. Imports and exports as well as interstate sales of goods and services are subject to this tax. The central government administers and collects the IGST in accordance with the IGST Act. It then divides the accrued tax among the various states involved in the sales.
How do you calculate GST?
GST calculation formula
To calculate GST, taxpayers can use simple formulas.
- To include GST in the base amount:
GST = (Original Cost * GST rate) / 100
Base amount with GST = Original Cost + GST
For example: Original cost is Rs. 1000 and GST rate is 10%
GST = (1000 * 10) / 100 = 100
Base amount with GST = 1000 + 100 = 1100
- To exclude GST from the base amount:
Base amount without GST = Base amount with GST / (1+ GST rate /100)
For example: Base amount with GST is Rs. 1100 and GST rate is 10
Base amount without GST = 1100 / (1+10 / 100) = 1000
Note: GST Reform 2.0 has streamlined the tax framework by replacing the previous general slabs of 12% and 28% with a simplified two-rate system of 5% and 18%, along with a special higher rate of 40% for certain goods.
