GST Rate Slabs
India uses: 0% (essentials), 3% (gold), 5% (basic), 12% (processed food), 18% (most services), 28% (luxury).
CGST vs SGST vs IGST
Intra-state: CGST + SGST = total GST rate (split equally). Inter-state: IGST at full rate.
Example: 18% GST on ₹1,000
- Intra-state: CGST ₹90 + SGST ₹90 = ₹180
- Inter-state: IGST = ₹180
- Total invoice: ₹1,180
Reverse GST Calculation
Pre-GST = Price × 100 / (100 + GST%). Example: ₹1,180 at 18% = ₹1,000 base price.
Input Tax Credit
Registered businesses can claim ITC on purchases against output GST liability, avoiding cascading taxes.
GST Registration Threshold
Mandatory if annual turnover exceeds ₹40 lakhs (goods) or ₹20 lakhs (services). Also required for inter-state sales and e-commerce.