What are the GST rates in India 2026?+
India has four main GST rates: 5% (essential items — food, medicines, transport), 12% (processed foods, computers, business class air travel), 18% (most services, electronics, restaurants), 28% (luxury goods — cars, tobacco, aerated drinks). Some items like fresh vegetables, milk, eggs are exempt (0% GST).
What is the difference between CGST, SGST and IGST?+
For intra-state (within same state) transactions: CGST (Central GST) + SGST (State GST) each at half the GST rate. For inter-state transactions: IGST (Integrated GST) at full rate. Example: 18% GST on a Mumbai-to-Mumbai sale = 9% CGST + 9% SGST. Same product sold Mumbai-to-Delhi = 18% IGST.
How to calculate GST on an amount?+
To add GST: GST Amount = Original Price × GST Rate ÷ 100. Total = Original Price + GST Amount. Example: ₹1000 + 18% GST = ₹1,180. To remove GST (find original from GST-inclusive price): Original = GST-inclusive Price × 100 ÷ (100 + GST Rate). Example: ₹1180 ÷ 1.18 = ₹1000.
What is the GST registration threshold?+
GST registration is mandatory if your annual turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services). For northeastern states and special category states, the threshold is ₹20 lakh (goods) and ₹10 lakh (services). E-commerce sellers must register regardless of turnover.
What items are exempt from GST?+
Items exempt from GST include: Fresh fruits and vegetables, milk, eggs, meat (unprocessed), bread (unbranded), salt, educational services, healthcare services, residential rental housing, agricultural land. Petroleum products (petrol, diesel, ATF, CNG) are outside GST scope and taxed separately.
What is the reverse charge mechanism in GST?+
Under Reverse Charge Mechanism (RCM), the recipient (buyer) of goods or services pays GST instead of the supplier. RCM applies when buying from unregistered dealers, for certain specified services (legal, GTA transport, security), or for imports. The buyer can claim Input Tax Credit on RCM payments.