How to calculate GST: add & remove GST
There are really only two GST sums you'll ever need: adding GST to a base price, and removing GST from a price that already includes it. This guide covers both formulas with clear, worked examples at the current GST 2.0 rates.
The two formulas at a glance
Adding GST to a price
Use this when you have a price before tax and want the final amount the customer pays.
- Take the base price. Say a service costs ₹10,000 before GST.
- Find the GST amount. At 18%: ₹10,000 × 18 ÷ 100 = ₹1,800.
- Add it on. ₹10,000 + ₹1,800 = ₹11,800 total.
The same method works at any slab. At 5%, ₹2,000 × 5 ÷ 100 = ₹100 GST, so the total is ₹2,100. At 40%, ₹2,000 × 40 ÷ 100 = ₹800 GST, so the total is ₹2,800.
Removing GST from a total (reverse GST)
Use this when a price already includes GST — like an MRP or a quoted "all-in" figure — and you need to know the base and the tax hidden inside it. You can't just take a flat percentage off the total; you divide.
- Take the GST-inclusive total. Say ₹11,800, which includes 18% GST.
- Back out the base. ₹11,800 ÷ (1 + 18/100) = ₹11,800 ÷ 1.18 = ₹10,000.
- The rest is GST. ₹11,800 − ₹10,000 = ₹1,800.
A quick check: a ₹1,050 price that includes 5% GST has a base of ₹1,050 ÷ 1.05 = ₹1,000 and ₹50 of GST inside it.
Splitting the GST: CGST, SGST or IGST
The total GST is the same whether the sale is within your state or across states — only the split changes. For a sale within the same state, the GST is divided equally into CGST and SGST. For a sale between two states, a single IGST is charged at the full rate.
So on that ₹1,800 of GST: an intra-state sale shows ₹900 CGST + ₹900 SGST, while an inter-state sale shows ₹1,800 IGST. We cover this fully in CGST vs SGST vs IGST explained.
Common mistakes to avoid
- Subtracting a flat % from an inclusive price. Taking 18% off ₹11,800 gives the wrong base — you must divide by 1.18, not multiply by 0.82.
- Using an old slab. Since GST 2.0 (22 September 2025), the 12% and 28% slabs are gone — see GST 2.0 explained.
- Rounding too early. Round only the final figures, not each intermediate step.