GST summary basics for small businesses in India
Goods and Services Tax is charged on most sales in India. A simple summary helps you see taxable value, tax collected and the invoice total. This page is general information, not tax advice.
CGST, SGST and IGST
When you sell within the same state, the tax is split into two equal parts: CGST goes to the central government and SGST to the state. When you sell to another state, a single IGST is charged instead. The total tax rate is the same either way; only the split differs.
Rates change
From 22 September 2025 the main GST rates are 0%, 5%, 18% and 40%, and a few special rates such as 3% still exist. Which rate applies depends on the item or service. Always check the official GST website or ask your tax professional for your item.
A simple summary
Taxable value is the sale price before tax. Tax is taxable value × rate. Invoice total is taxable value plus tax. For example, a taxable value of 10,000 at 18% gives tax of 1,800 and an invoice total of 11,800. Within one state, 900 is CGST and 900 is SGST.
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General information for learning. It is not financial, tax, legal or investment advice.