Comprehensive Guide to Goods and Services Tax (GST) in India
The Goods and Services Tax (GST) was introduced in India on July 1, 2017, replacing a complex network of indirect taxes like Excise Duty, Service Tax, VAT, and CST into a unified single indirect tax structure.
Formula for Exclusive GST
GST Amount = (Base Amount ร GST Rate) / 100
Net Total = Base Amount + GST Amount
Formula for Inclusive GST
GST Amount = Total Amount - [Total Amount ร (100 / (100 + GST Rate))]
Base Amount = Total Amount - GST Amount
GST Tax Slabs Overview in India
| GST Slab | Applicable Goods & Services | Example Items |
|---|---|---|
| 0% (Nil) | Fresh food, unbranded grains, milk, eggs | Salt, bread, fresh vegetables |
| 5% | Essential mass consumption items, medicines | Sugar, tea, spices, apparel < โน1000 |
| 12% | Standard processed goods, computer hardware | Processed food, apparel > โน1000 |
| 18% | Most consumer items, IT services, telecom | Soaps, electronics, software, banking |
| 28% | Luxury items, sin goods, automobiles | Cars, ACs, aerated drinks, cigarettes |