GST in India: Complete Guide for 2024-25

What is GST?

Goods and Services Tax (GST) is a unified indirect tax levied on the supply of goods and services across India. It replaced multiple taxes like VAT, Service Tax, and Central Excise Duty when it was introduced on 1 July 2017.

Types of GST

CGST (Central GST) — collected by the Central Government

SGST (State GST) — collected by the State Government

IGST (Integrated GST) — for inter-state transactions, collected by Centre and shared with states

For an intra-state sale, both CGST and SGST are levied (half each). For inter-state sales, only IGST applies.

GST Slabs in India (2024-25)

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How to Calculate GST

GST inclusive price → exclusive price:

Original amount = Price ÷ (1 + GST%/100)

GST exclusive price → inclusive price:

GST amount = Price × GST% / 100

Total = Price + GST amount

Use the GST Calculator on MCalci for instant results.

Input Tax Credit (ITC)

Registered businesses can claim credit for GST paid on purchases against their GST liability on sales. This eliminates the cascading tax effect and is one of GST's biggest advantages for businesses.

GST Registration Threshold

Businesses with annual turnover above ₹40 lakhs (₹20 lakhs for special category states) must register for GST. Service providers have a ₹20 lakh threshold.