1. Indian GST Components
GST is divided into Central GST (CGST) and State GST (SGST) for transactions within a state, and Integrated GST (IGST) for transactions between states. Our calculator automates these splits for billing.
2. Calculating Tax-Inclusive Prices
To extract the base price from a GST-inclusive amount, apply the formula: Base = Total / (1 + GST Rate). This allows you to verify supplier calculations accurately.
2.1 CGST and SGST 50/50 Splits
For transactions within the same state, the total GST amount is always split equally between CGST and SGST accounts.