Goods and Services Tax replaced most indirect taxes in India with a single unified system. Here's how it works.
| Tax | When it applies |
|---|---|
| CGST (Central GST) | Intra-state sales — collected by the Central Government |
| SGST (State GST) | Intra-state sales — collected by the State Government, alongside CGST |
| IGST (Integrated GST) | Inter-state sales — collected by the Central Government, then apportioned to states |
For intra-state sales, CGST and SGST are each half the total rate. For inter-state sales, IGST equals the full rate. Try this with our GST Calculator or GST Invoice Generator.
| Rate | Typical items |
|---|---|
| 5% | Essential goods, packaged food, footwear under ₹1,000 |
| 12% | Processed food, some electronics, business air tickets |
| 18% | Most goods and services (the default rate) |
| 28% | Luxury and sin goods — cars, tobacco, aerated drinks |
Small businesses (turnover up to ₹1.5 crore for goods, lower for services) can opt for the composition scheme — pay tax at a lower flat rate on turnover, with simpler compliance, but can't claim input tax credit or charge GST separately on invoices.
Filing a return? Work out your net GST payable.
Use the GST Return Calculator →GST rules and rates are updated periodically by the GST Council. Verify current rates on the official GST portal before filing or invoicing.