Understanding Goods and Services Tax (GST) Architecture
The Goods and Services Tax (GST) is a unified, multi-stage consumption tax levied on goods and services. By replacing multiple cascading levies, GST creates a uniform commercial rate structure across regional jurisdictions and ensures seamless tax accounting.
Inclusive vs. Exclusive Tax Base
In exclusive calculation (Add GST), the statutory percentage is appended to the base cost. In inclusive calculation (Remove GST), shelf retail prices already include the tax, and the base cost is reverse-calculated using: Net Base = Total / (1 + Rate / 100).
CGST, SGST, & IGST Division
Intra-state transactions split the total tax evenly (50/50) between Central GST (CGST) and State GST (SGST). Inter-state supplies between different territories apply the full tax as Integrated GST (IGST).
Standard GST Rate Slabs & Product Categorization
| Tax Slab | Intra-State Split | Common Items / Services | Economic Rationale |
|---|---|---|---|
| 0% (Nil) | 0% CGST + 0% SGST | Fresh produce, milk, grains, educational books | Basic necessities & public welfare |
| 5% | 2.5% CGST + 2.5% SGST | Packaged foods, transport, basic apparel | Low-margin essential goods |
| 12% | 6% CGST + 6% SGST | Processed items, computers, business utilities | Standard commercial bracket |
| 18% | 9% CGST + 9% SGST | Software, telecom, IT services, consulting | Primary standard tax bracket |
| 28% | 14% CGST + 14% SGST | Automobiles, luxury items, high-end electronics | Luxury & demerit goods |
Frequently Asked Questions
How does Add GST vs. Remove GST work?
Add GST takes your pre-tax base amount and adds the tax percentage on top: Gross = Net * (1 + Rate/100). Remove GST extracts the base price from an all-inclusive retail figure: Net = Gross / (1 + Rate/100).
How does the multi-item table handle different GST rates?
Each row lets you assign individual tax slabs (0%, 5%, 12%, 18%, 28%) and quantities. The engine computes line-level taxes and aggregates them into a consolidated invoice breakdown.
Are my commercial entries or invoice numbers uploaded anywhere?
No. All computations, row additions, deletions, and invoice generations occur entirely inside your browser's local JavaScript thread. Zero network calls are made.