Free GST Calculator

Invoices raised before 22 September 2025 continue under the old GST structure. However, any billing, supply, or payment made after that date must follow the new rates. Businesses must carefully track the ‘time of supply’ to avoid mismatched entries in GSTR-1 and GSTR-3B during the transition period.

Most essential goods—food grains, medicines, milk, and basic toiletries—are now taxed at 0% or 5%. This shift directly lowers consumer costs and reduces inflation on everyday items. The GST Council’s goal was to protect low-income households and promote affordability while simplifying compliance for businesses selling daily-use products.

You can easily verify the applicable GST rate in one of these ways: Visit the official GST portal gst.gov.in and search by HSN code. Check your invoice or purchase bill, where the HSN/SAC code and GST rate must be printed. You can also use accounting software that automatically applies the correct rates based on product categories.

Yes. GST is a nationwide indirect tax, which means these new rates apply uniformly across all Indian states and Union Territories. Both Central GST (CGST) and State GST (SGST) are levied together, but the rate structure remains the same everywhere. For interstate sales, Integrated GST (IGST) is still charged using the same rate slabs. So whether you operate in Delhi, Karnataka, or Assam, the applicable GST rate for a given product or service remains identical.

If you’re a small business owner, here’s what to do to stay compliant: First, update your accounting and billing software to reflect the new GST rates. Check your product list and ensure each item has the correct HSN code and updated tax rate. Revise your pricing to account for the reduced or revised GST rate—it might help you stay competitive. File your GST returns (GSTR-1, 3B, etc.) carefully in the first few months after the transition, as this is when errors often occur.

India now has four GST slabs effective from 22 September 2025: 0% (Nil) for essential and life-saving items like fresh fruits, vegetables, and medicines; 5% for everyday essentials like edible oils and packaged food; 18% for standard goods and services like mobile phones and electronics; and 40% for luxury and sin goods like cigarettes, tobacco, and luxury cars. This replaces the old 5-slab structure.

CGST (Central GST) and SGST (State GST) are charged on intra-state transactions (within the same state), each being half of the total GST rate. IGST (Integrated GST) is charged on inter-state transactions (between different states) and equals the full GST rate. For example, on an 18% GST item sold within a state, 9% CGST and 9% SGST apply.

The government revised GST rates to make the system easier for both businesses and consumers. Key reasons include: Simplification (the old 5-slab structure was complicated), Affordability (everyday goods are cheaper as some items moved to lower tax rates), Fairness (luxury and harmful goods are taxed more heavily), and Ease of Compliance (accounting software can now manage GST filing more easily with fewer rates).

Yes, our GST Calculator is updated with the latest 2025 tax rates effective from 22 September 2025. It uses the standard formulas prescribed by the GST Council and correctly calculates tax amounts for all current GST rates (0%, 5%, 18%, 40%). It also correctly splits the amount between CGST, SGST, and IGST. However, for official purposes, always verify with your accountant.

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Yes, registered businesses can claim Input Tax Credit on GST paid for business purchases. ITC allows you to reduce your GST liability by the amount of GST you’ve already paid on inputs. Proper documentation and timely filing of returns are essential to claim ITC. The new simplified slab structure makes ITC tracking easier.