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How to calculate GST: inclusive vs exclusive prices (with examples)

Learn how to add GST to a price and how to remove GST from an inclusive price, plus the CGST, SGST and IGST split — with simple rupee examples.

BBillman team · 23 Oct 2026 · 4 min read
Quick answer: To add GST, multiply by (100 + rate) ÷ 100. To remove GST from an inclusive price, multiply by 100 ÷ (100 + rate). Within your state, split GST equally into CGST and SGST; to another state, charge it all as IGST.

Adding GST to a price

GST = Price × Rate ÷ 100. Total = Price + GST. For ₹1,000 at 18%: GST is ₹180 and the total is ₹1,180.

Removing GST from an inclusive price

Taxable value = Price × 100 ÷ (100 + Rate). For ₹1,180 including 18%: ₹1,180 × 100 ÷ 118 = ₹1,000, so GST is ₹180. A common mistake is to take 18% of ₹1,180 (₹212.40) — that is wrong.

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CGST, SGST and IGST

SaleTax charged₹1,000 at 18%
Within your stateCGST + SGST (half each)₹90 + ₹90
To another stateIGST (full rate)₹180

Common GST rates

GST 2.0, from 22 September 2025, simplified the slabs:

  • 0% — essentials such as fresh vegetables, milk and unbranded atta
  • 5% — most everyday goods, including packaged food and edible oil
  • 18% — most other goods and services
  • 40% — luxury and sin goods
  • 12% and 28% — still used for a few items
  • Special: 3% gold and silver, 0.25% rough diamonds
💡 Rates change from time to time. Always confirm your item’s rate on cbic-gst.gov.in.
Watch: GST added automatically in BillmanMake a GST bill in seconds — 1:22

FAQ

How do I remove 18% GST from a price?

Divide the price by 1.18. ₹1,180 ÷ 1.18 = ₹1,000 taxable value, and the GST is ₹180.

Is CGST + SGST the same as IGST?

The total is the same. CGST and SGST (half each) apply within a state; IGST applies to sales to another state.

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