How it works
- Add GST: GST = amount × rate ÷ 100; total = amount + GST.
- Remove GST (you have a price that already includes GST): net = total ÷ (1 + rate ÷ 100); GST = total − net.
- Within a state, GST is split equally into CGST and SGST (or UTGST). Between states it is charged as a single IGST at the full rate.
Common GST rates in India
- 0% — fresh food, milk, books, education, healthcare
- 5% — packaged essentials, restaurants, economy air travel
- 12% — processed food, some textiles, business-class travel
- 18% — most services, electronics, software, telecom, financial services
- 28% — luxury goods, cars, tobacco, aerated drinks (plus cess)
Rates change with GST Council decisions; check the current rate for your item on the CBIC site before invoicing.
Common questions
Which rate for freelancers and agencies?
Most services, including design, marketing, software and consulting, are 18%.
Do I charge GST below ₹20 lakh turnover?
Registration is optional below ₹20 lakh (₹10 lakh in some north-eastern and hill states) for services, ₹40 lakh for goods in most states. Once registered, you must charge GST on every invoice.