🏢 Business Finance 6 min read·Updated 1 July 2026
GST in India: A Simple Guide for Individuals and Small Businesses
Goods and Services Tax is a single indirect tax that replaced VAT, service tax, excise and more. Every business with turnover above the threshold needs to register.
GST slabs (2026)
- 0% — essentials like fresh food, unbranded staples.
- 5% — mass consumption items, transport.
- 12% — processed food, business-class travel.
- 18% — most services, electronics, restaurants.
- 28% — luxury goods, tobacco, sin goods (plus cess).
Inclusive vs exclusive
'Exclusive of GST' means the price is before tax — you add GST on top. 'Inclusive of GST' means the price already contains GST — you extract it out to find the net.
Extract GST
GST = Gross − Gross ÷ (1 + rate/100)
Registration thresholds
- ₹40 lakh turnover for goods (₹20 lakh for some states).
- ₹20 lakh turnover for services (₹10 lakh for special states).
- Compulsory registration for inter-state supply, e-commerce, and reverse-charge cases.
Frequently asked questions
Can I claim input tax credit as an individual?+
No, ITC is for GST-registered businesses only.
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