Question 1

What are the current GST rates in India 2026?

Accepted Answer

Following GST 2.0 reforms (56th GST Council, September 3, 2025) effective September 22, 2025, India has 4 main GST slabs: 0% (exempt — fresh produce, life-saving drugs, health and life insurance, education), 5% (daily essentials — packaged foods, toothpaste, soap, medicines, electric vehicles), 18% (standard rate — mobile phones, laptops, cars below 1200cc, AC, TV, restaurant services, IT and financial services), and 40% (sin/luxury goods — tobacco, pan masala, aerated drinks, luxury cars, online gaming, betting). Special rates: 3% on gold/silver and 0.25% on rough diamonds. Old 12% and 28% slabs have been eliminated.

Question 2

How to calculate GST on a price?

Accepted Answer

To ADD GST: GST Amount = Base Price x GST Rate / 100. Total = Base Price + GST Amount. For intrastate supplies: CGST = SGST = GST Amount / 2. For interstate: IGST = full GST Amount. Example: Base Rs 10,000 at 18% GST = Rs 1,800 GST. Total = Rs 11,800. CGST = SGST = Rs 900 each. To REMOVE GST from MRP: Base Price = MRP / (1 + GST Rate / 100). GST = MRP minus Base Price. Example: MRP Rs 11,800 at 18% = Base Rs 10,000, GST Rs 1,800.

Question 3

What is the difference between CGST, SGST and IGST?

Accepted Answer

CGST (Central GST) and SGST (State GST) are charged on intrastate supplies — when buyer and seller are in the same state. Each is half the applicable GST rate. IGST (Integrated GST) is charged on interstate supplies — when buyer and seller are in different states, or on imports. For any supply, use either CGST + SGST (same state) or IGST (different states) — never both on the same supply.

Question 4

Is GST registration mandatory for e-commerce sellers?

Accepted Answer

Yes. E-commerce sellers (Amazon, Flipkart, Meesho, Myntra etc.) must register for GST regardless of turnover — the normal threshold exemption of Rs 40 lakh (goods) or Rs 20 lakh (services) does not apply to e-commerce sellers. Registration is mandatory before your first sale on any marketplace.

Question 5

What is TCS in GST for e-commerce sellers?

Accepted Answer

TCS (Tax Collected at Source) under GST is collected by e-commerce operators at 1% (0.5% CGST + 0.5% SGST) on the net value of taxable supplies made by registered sellers through their platform. For interstate sales: 1% IGST. This is deducted from seller payouts and can be claimed as credit in GSTR-3B after it appears in GSTR-2B.

Question 6

What is GST rate on mobile phones, gold and cars?

Accepted Answer

Mobile phones: 18% GST. Laptops: 18%. Gold and silver: 3%. Cars below 1200cc: 18%. Cars above 1200cc or SUVs: 40%. Electric vehicles: 5%. Motorcycles below 350cc: 18%. Motorcycles above 350cc: 40%. Television sets (all sizes): 18%. Air conditioner, washing machine, refrigerator: 18%. All rates updated for GST 2.0 effective September 22, 2025.