GST Rates in India: Slabs, CGST/SGST Split and Examples

Every good or service sits in one of five rate buckets. The table below lists the slab, the typical split between CGST and SGST, and a handful of concrete examples.

Some items at the 28% slab also attract a GST Compensation Cess on top of the 28% — for example, luxury cars and tobacco. That cess is separate from the base GST calculation.

GST is not a single payment to one government. It is a dual-levy system:

• CGST (Central GST) — collected by the Central Government on intra-state supplies.
• SGST (State GST) — collected by the State Government on the same intra-state supply. UTGST replaces SGST in Union Territories without a legislature.
• IGST (Integrated GST) — collected by the Centre on inter-state supplies and imports. IGST equals CGST + SGST combined, applied as a single levy.

The rule of thumb: same state → CGST + SGST; different states → IGST.

Example: A Delhi-registered business sells software services to a client also in Delhi at 18% GST. The bill shows CGST 9% + SGST 9%. The same business selling to a Mumbai client shows only IGST 18%. The tax collected by the Centre is then apportioned to the consuming state — this is the destination-based principle GST was built on.

From an input tax credit (ITC) standpoint, CGST credit can offset CGST or IGST liability; SGST credit can offset SGST or IGST liability; IGST credit can offset IGST, then CGST, then SGST in that order.

These two cases trip up more people than any other part of GST arithmetic.

GST-Exclusive (tax added on top) — the price quoted does not include GST. This is the standard for B2B invoices.

1. GST Amount = Base Price × (GST Rate ÷ 100)
2. Total Price = Base Price + GST Amount

Example: A laptop base price is ₹50,000, GST rate 18%.

• GST = ₹50,000 × 0.18 = ₹9,000
• You pay = ₹50,000 + ₹9,000 = ₹59,000
• On the invoice: CGST ₹4,500 + SGST ₹4,500

GST-Inclusive (tax already embedded) — the quoted price includes GST. Common in retail where the MRP is printed on the pack.

1. GST Amount = Total Price × GST Rate ÷ (100 + GST Rate)
2. Base Price = Total Price − GST Amount

Example: A restaurant bill shows ₹1,180 inclusive of 18% GST.

• GST = ₹1,180 × 18 ÷ 118 = ₹1,180 × 0.15254 = ₹180
• Base (food value) = ₹1,180 − ₹180 = ₹1,000

The shortcut formula GST = Total × R / (100 + R) works for any rate R. Memorizing it saves time on every inclusive-price check.

The following examples show a complete invoice line for each slab.

Notice that the CGST and SGST are always equal halves of the total GST. Only the rate and the base value change row to row.

Applying the wrong slab to a similar product: Branded vs. unbranded matters. Unbranded cereals are 0%; branded packaged versions attract 5%. The same physical product, a different GST rate.

Confusing MRP with base price: When a retailer is required to charge GST on the MRP (printed maximum retail price), back-calculate the base using the inclusive formula — do not apply the rate on top of MRP, or you double-count.

Composite and mixed supplies: When a box of chocolates is gift-wrapped, the supply may be treated as a composite supply (principal supply determines rate) rather than split into components. Getting this wrong affects both output tax and ITC claims.

Place of supply for services: For B2B services, the place of supply is generally the location of the recipient. For B2C, it is usually the provider's location. This determines whether CGST+SGST or IGST applies and which state collects the revenue.

Input Tax Credit (ITC) eligibility: ITC is blocked on certain expenses — personal car purchases, food and beverages, club memberships, works contract services used for construction of immovable property. These items still carry GST on purchase; you simply cannot offset that against your output liability.

Under RCM, the recipient of goods or services pays GST instead of the supplier. This applies in specific situations: import of services, supply from unregistered dealers in notified categories, and certain defined services like legal fees from an individual advocate to a business.

When RCM applies:

• The supplier does not charge GST on the invoice.
• The recipient self-assesses and pays GST directly to the government.
• The recipient can claim ITC on that payment in the same tax period, subject to normal ITC rules.

The calculation is identical to normal GST — same slab, same CGST/SGST or IGST split depending on place of supply — only the direction of payment changes.

Manual calculation is straightforward once you know the formula, but invoice volumes make errors inevitable. The GST Calculator on UtilityApp handles both exclusive and inclusive modes, lets you select the applicable slab, and instantly shows CGST, SGST, IGST, and the final payable amount — no spreadsheet required.

Input any two of the three values (base price, GST rate, total price) and the tool derives the third. It is useful both when raising invoices and when auditing bills you have received.