What Is GST?
GST (Goods and Services Tax) is India's comprehensive indirect tax that replaced multiple cascading taxes — VAT, service tax, excise duty, and more — on July 1, 2017. It is a destination-based, multi-stage tax collected at each point in the supply chain, with input tax credit eliminating the cascading effect.
GST Rate Structure in India
| Rate | Category | Examples |
|---|---|---|
| 0% | Exempt | Fresh vegetables, milk, eggs, bread, books |
| 3% | Special | Gold, silver, precious stones |
| 5% | Essential | Packaged food, medicines, economy hotels |
| 12% | Standard | Computers, processed food, construction materials |
| 18% | Standard+ | Most services, electronics, paint, cement |
| 28% | Luxury/Sin | Luxury cars, tobacco, aerated drinks, casinos |
CGST vs SGST vs IGST
- CGST (Central GST): Goes to central government — 50% of total GST on intra-state sales
- SGST (State GST): Goes to state government — 50% of total GST on intra-state sales
- IGST (Integrated GST): Applied to inter-state sales — collected by Centre and shared
GST composition: For intra-state transactions, an 18% GST is split as 9% CGST + 9% SGST. Our calculator shows this split automatically.