Two quotes for the same work can look very different depending on one small phrase: "inclusive of GST" or "plus GST". Before you compare prices, budget for a purchase or check a bill, it helps to know which one you are looking at.
Inclusive vs exclusive
- Exclusive ("₹10,000 + GST"): the number you see is the price before tax. GST is added on top, so at 18% you pay ₹11,800.
- Inclusive ("₹11,800 incl. GST"): the tax is already inside the number. The seller keeps ₹10,000 and passes ₹1,800 on as GST.
Shops selling to consumers usually show inclusive prices. Freelancers, agencies and other businesses often quote exclusive prices, because their business clients can usually claim the GST back as input tax credit.
The common mistake when removing GST
If a total of ₹11,800 includes 18% GST, the tax is not 18% of ₹11,800 (that would be ₹2,124). The 18% was charged on the price before tax, so you have to work backwards:
GST inside a total = total × rate ÷ (100 + rate)
For ₹11,800 at 18%: 11,800 × 18 ÷ 118 = ₹1,800, leaving ₹10,000 as the price before GST. The same idea works at any rate. At 5%, a ₹1,000 total contains 1,000 × 5 ÷ 105 = ₹47.62 of GST.
CGST, SGST and IGST
Your bill may show the tax in two halves or as one line:
- Within one state or union territory: the GST is split equally into CGST (for the Centre) and SGST or UTGST (for the state or UT). At 18%, that is 9% + 9%.
- Between two states: the whole amount is IGST.
The total tax is the same either way. Only the split changes, based on where the supplier is and where the supply is made.
Which rate applies?
Since 22 September 2025, most goods and services fall into two main slabs, 5% and 18%. A special 40% rate applies to a short list of luxury and sin goods, and some essentials are nil-rated or exempt. A few items, such as precious metals, have their own special rates.
The rate for a particular item depends on its classification: the HSN code for goods and the SAC code for services. Check the CBIC rate notification for that code instead of guessing from the category.
Try it
The GST calculator adds GST to a price or removes it from a total, and shows the CGST and SGST or IGST split.