❓ Frequently Asked Questions

GST (Goods and Services Tax) is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced multiple indirect taxes like VAT, service tax, and excise duty. GST is calculated as a percentage of the transaction value and is divided into CGST (Central GST), SGST (State GST) for intra-state transactions, and IGST (Integrated GST) for inter-state transactions.

India has a multi-tier GST structure with rates of 0%, 5%, 12%, 18%, and 28%. Essential items like food grains are taxed at 0%, while luxury items and sin goods attract the highest rate of 28%. Some goods also attract additional compensation cess on top of the basic GST rate.

CGST (Central GST) is collected by the central government, SGST (State GST) is collected by state governments for intra-state transactions. Together, CGST + SGST = Total GST rate. IGST (Integrated GST) is levied on inter-state transactions and is collected by the central government, which then distributes the state portion to the destination state.

HSN (Harmonized System of Nomenclature) codes are used for goods classification, while SAC (Services Accounting Code) is used for services. These codes help determine the applicable GST rate and ensure uniform classification across the country. Our calculator includes both HSN and SAC codes for accurate rate determination.

Input Tax Credit (ITC) allows businesses to deduct the GST paid on their inputs (purchases) from the GST collected on their outputs (sales), preventing tax on tax. This ensures that GST is only paid on the value addition at each stage. ITC can only be claimed on eligible business inputs and is subject to certain conditions and restrictions as per GST law.

Under Reverse Charge Mechanism (RCM), the recipient of certain goods or services (rather than the supplier) is liable to pay GST directly to the government. This applies to specific scenarios like services from Goods Transport Agency (GTA), legal services, and certain inter-state purchases from unregistered dealers. RCM ensures tax compliance in situations where the supplier may not be required to charge GST.

Our GST calculator is based on official notifications from the Central Board of Indirect Taxes and Customs (CBIC) and is updated regularly to reflect current rates. While highly accurate for general estimation purposes, GST rates can vary based on specific product specifications, HSN/SAC codes, and applicable exemptions. For formal compliance and complex scenarios, we recommend consulting a qualified tax professional. Please also review our Disclaimer for more details.

For GST exclusive prices: GST Amount = (Price × GST Rate) / 100, Total = Price + GST Amount. For GST inclusive prices: GST Amount = (Total × GST Rate) / (100 + GST Rate), Price = Total - GST Amount. Our calculator handles both scenarios automatically - simply select whether your entered amount is inclusive or exclusive of GST.

Yes, our GST calculator is fully responsive and optimized for use on mobile phones, tablets, and desktop computers. You can access it from any device with an internet connection for convenient calculations on the go. The interface adapts to your screen size for optimal usability.

We monitor official GST notifications from CBIC and GST Council meetings regularly. Rate changes are typically updated within a few days of official notification. However, we recommend verifying current rates from official sources for critical business decisions, especially for time-sensitive transactions.

If you notice any discrepancy in GST rates, please cross-check with official CBIC notifications. Our calculator is based on publicly available official data, but complex scenarios may require professional consultation. Always verify rates for your specific use case, especially for goods with multiple variants or special exemptions.

GST registration is mandatory for businesses with annual turnover exceeding ₹40 lakhs (₹20 lakhs for northeastern states). However, certain categories like e-commerce operators, inter-state suppliers, and specific service providers must register regardless of turnover. Some businesses may also opt for voluntary registration to claim input tax credits.

Compensation cess is an additional tax levied on luxury and sin goods like automobiles, tobacco, and aerated drinks. It's collected to compensate states for revenue loss during GST transition. The cess varies by product category and is in addition to the basic GST rate. Our calculator automatically includes applicable cess rates.

The GST Composition Scheme is a simplified tax regime for small businesses with lower compliance requirements and fixed tax rates based on turnover. Our calculator currently focuses on regular GST rates. Businesses under the Composition Scheme have different calculation methods and should consult a tax professional for accurate calculations specific to their scheme.

While our calculator provides accurate estimates based on official rates, it's designed for informational and estimation purposes. For actual tax filing and compliance, consult a qualified chartered accountant or tax professional who can consider your specific business circumstances, applicable exemptions, and compliance requirements. Please also review our Disclaimer for important usage limitations.

Our calculator covers major categories of goods and services with their respective HSN/SAC codes. However, specific business scenarios, exemptions, or special schemes (like composition scheme, SEZ transactions, or exports) may have different calculations. Consult a tax professional for specialized requirements or unique business situations.