GST (Goods and Services Tax) has been India’s unified indirect tax system since 2017. Whether you are a freelancer raising invoices, a small business owner calculating margins, or a shopper checking if a price includes GST — our free GST calculator handles it instantly.
GST Rates in India (2026)
- 5% GST — essential food items, medicines, transport services, small restaurants
- 12% GST — processed food, business class flights, non-AC hotels
- 18% GST — most services (IT, professional, telecom), electronics, software, most manufactured goods
- 28% GST — luxury items, cars, tobacco, aerated drinks, casinos
How GST is Split: CGST vs SGST vs IGST
When you buy something within the same state — for example, a Bengaluru business buying from another Bengaluru supplier — the GST is split equally between Central GST (CGST) and State GST (SGST). An 18% GST transaction = 9% CGST + 9% SGST.
When the transaction crosses state lines — a Delhi buyer purchasing from a Mumbai seller — the entire tax goes as Integrated GST (IGST) to the central government, which then distributes to the states.
GST Registration Threshold in India
Businesses with annual turnover above ₹40 lakh (₹20 lakh for service providers and special category states) must register for GST. Freelancers and consultants earning above this threshold need a GST number to legally collect and remit GST.
