India GST Calculator 2026
18% standard, with reduced rate of 5% on specified categories.
Figures last reviewed
India GST at a glance
- Standard GST rate
- 18% — ranked 20 of 36 covered here
- Reduced rate
- 5% — applies to specified categories only
- Compared with the average
- +1.01 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 4,000,000 INR — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How GST works in India
GST 2.0 from 22 Sept 2025: 18% standard, 5% merit rate, and 40% on sin and luxury goods. The former 12% and 28% slabs were abolished.
Calculating India GST
Start from the price excluding tax
GST is charged on the net price. At 18%, a net INR 100 becomes INR 118.00 once GST of INR 18.00 is added.
To work backwards, divide — never subtract
Removing GST from a gross figure means dividing by 1.1800, not subtracting 18%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Check which rate actually applies
India applies a reduced rate of 5% to specified categories. GST 2.0 from 22 Sept 2025: 18% standard, 5% merit rate, and 40% on sin and luxury goods. The former 12% and 28% slabs were abolished. Using the standard rate on a reduced-rate supply overstates the tax.
Registration is threshold-based
Businesses with taxable turnover above INR 4,000,000 a year must register and charge GST. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 18%
Adding and removing GST at 18%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | INR 100.00 | INR 1,000.00 |
| GST at 18% | (INR 18.00) | (INR 152.54) |
| Result | INR 118.00 | INR 847.46 |
So a net price of INR 100.00 in India costs INR 118.00 once GST is added. Working the other way, a gross price of INR 1,000.00 contains INR 152.54 of GST, leaving INR 847.46 net.
Computed from the same 18% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
India GST questions
What is the GST rate in India?
The standard rate is 18%. Reduced rate of 5% apply to specified categories. That places India 20 of 36 of the countries covered here, 1.01 points above the 16.99% average.
How do I remove GST from a price in India?
Divide the gross amount by 1.1800. At 18%, a gross INR 1,000 works back to INR 847.46 net with INR 152.54 of GST. Subtracting 18% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for GST in India?
Once taxable turnover passes INR 4,000,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Is India's GST the same thing as VAT?
Not exactly. GST 2.0 from 22 Sept 2025: 18% standard, 5% merit rate, and 40% on sin and luxury goods. The former 12% and 28% slabs were abolished. The calculator applies the headline rate, which is what most transactions use, but the underlying regime differs from a European-style VAT.
Which countries have higher and lower rates than India?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. India sits at 18%.