On a sale within one state the tax splits equally into CGST and SGST; on an inter-state sale the same total is charged as a single IGST line. The 3% rate applies to gold and silver jewellery, where making charges are taxed at 5% separately.
Example: ₹10,000 of services at 18% → GST = ₹1,800, total payable = ₹11,800.
This is where the common mistake lives. To strip the tax out of a total that already contains it, divide rather than multiply:
Example: a ₹11,800 bill at 18% → base = ₹11,800 ÷ 1.18 = ₹10,000, GST = ₹1,800. Taking 18% of ₹11,800 gives ₹2,124, which is ₹324 too high — it taxes the tax.
The total is the same either way; only the split differs, and it depends on where the supplier and the customer are:
| Type of supply | What appears on the invoice | Example at 18% on ₹10,000 |
|---|---|---|
| Within one state (intra-state) | CGST + SGST, half each | CGST ₹900 + SGST ₹900 |
| Between states (inter-state) | IGST, the full rate as one line | IGST ₹1,800 |
| Union territory supply | CGST + UTGST, half each | CGST ₹900 + UTGST ₹900 |
| Rate | Typically applies to |
|---|---|
| 0% | Fresh unbranded food staples, and several essential goods and services |
| 3% | Gold, silver and jewellery (making charges are taxed separately at 5%) |
| 5% | Household essentials, economy transport, and many everyday goods |
| 12% | Processed foods, some apparel and mid-range goods |
| 18% | The standard rate — most services, electronics and industrial goods |
| 28% | Luxury and sin goods, often with an additional cess |
Rate assignments are revised by the GST Council from time to time, and some categories carry a cess on top of the slab. For anything you are invoicing, confirm the current rate for that specific HSN or SAC code rather than relying on a general table.
On a jewellery bill, 3% GST is charged on the metal value and 5% on the making charges, which is why the effective tax on the bill total sits slightly above 3%. If you are working out what a piece should cost before you get to the counter, the gold rate calculator builds the whole bill — metal, making charges, hallmarking and GST — line by line.
This tool computes the tax on a transaction. It does not model reverse charge (where the recipient pays the tax instead of the supplier), input tax credit set-offs, or the composition scheme's flat turnover-based rates. For filing, work from your books and the GST portal, not from a calculator.
Divide, don't multiply: base price = total ÷ (1 + rate/100). For a ₹11,800 bill at 18%, the base is ₹11,800 ÷ 1.18 = ₹10,000 and the GST is ₹1,800. Taking 18% of the ₹11,800 total gives ₹2,124, which is wrong — it charges tax on the tax.
They are the same total tax, split differently. A sale within one state is billed as CGST plus SGST at half the rate each; a sale between states is billed as a single IGST line at the full rate. Union territory supplies use CGST plus UTGST.
3% on the value of the gold or silver, and 5% on the making charges, which are billed as a separate line. That is why the tax on a jewellery bill works out slightly above 3% of the total.
It depends on the HSN code for goods or the SAC code for services. 18% is the standard rate covering most services and many goods, but the Council revises assignments periodically and some categories carry an additional cess. Confirm the current rate for your specific code before invoicing.
After. GST is charged on the transaction value, which is the price net of any discount shown on the invoice. Discounts given after the sale only reduce the taxable value if they were agreed beforehand and can be linked to the specific invoices.