How to Calculate GST for Small Business in India

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. For small business owners, understanding how to calculate GST correctly is essential for compliance and accurate pricing.

What is GST?

GST replaced multiple cascading taxes like VAT, Service Tax, and Excise Duty. It is categorized into CGST (Central), SGST (State), and IGST (Integrated) depending on whether the transaction is intra-state or inter-state.

GST Inclusive vs Exclusive

When a price is GST Exclusive, the tax is added on top of the base price. When it is GST Inclusive, the tax is already included in the total amount.

Common Mistakes

• Using the wrong tax slab for your product category
• Forgetting to reverse-calculate GST from inclusive prices
• Not keeping records of input tax credit

Use our free GST Calculator to avoid errors.