Price List › GST inclusive price

Price with and without GST

A price list can show prices with GST included or before GST. Here is how to turn one into the other, so your list and your bills match.

Add GST to a price

Price with GST = price × (100 + GST rate) ÷ 100.

Example at 18%: ₹500 × 118 ÷ 100 = ₹590 (₹90 GST). At 5%: ₹500 × 105 ÷ 100 = ₹525 (₹25 GST).

Take GST out of an inclusive price

Price without GST (taxable value) = inclusive price × 100 ÷ (100 + GST rate).

Example: an item sells for ₹590 including 18% GST. 590 × 100 ÷ 118 = ₹500 taxable value, ₹90 GST. An item at ₹105 including 5% GST: 105 × 100 ÷ 105 = ₹100 taxable value, ₹5 GST.

A common mistake

Taking 18% of the inclusive price does not give the GST in it. 18% of ₹590 is ₹106.20, but the GST inside ₹590 is ₹90. Always use the formula above.

Within the state and outside

Within the state the GST is split half and half as CGST and SGST (₹45 + ₹45 in the 18% example); to another state it is charged as IGST (₹90). The total is the same.

Which one to print

• Counter customers pay the full price, so print prices including GST and say so.
• Businesses claim input credit and compare prices before GST, so a dealer list often shows prices before GST with "GST extra as applicable".
• Packed goods: MRP always includes all taxes, so a retail price including GST cannot be above it.