Worked example
You receive an invoice for ₹11,800 inclusive of 18% GST from a vendor. Here is how to extract the taxable base and the GST component:
Intra-state: CGST ₹900 + SGST ₹900 = ₹1,800. Inter-state: IGST ₹1,800.
How to use the calculator
1Enter the invoice amount
Type the price of the goods or service. You can enter the amount with or without GST; just select the right option below.
2Choose the slab rate and supply type
Select the GST slab that applies to your product or service. Then choose intra-state or inter-state to see the CGST/SGST or IGST split.
3Read the breakdown
The calculator returns the taxable base, GST amount, invoice total, and the CGST/SGST or IGST split, all updated instantly.
Where PayU fits for merchants
PayU charges 18% GST on its payment gateway fees - a recoverable input tax credit for GST-registered merchants. For businesses processing high transaction volumes, understanding the GST on processing fees helps reconcile monthly gateway statements and claim ITC accurately.
About GST in India
GST slabs in India
Following the revised GST structure, goods and services are taxed at 5%, 18%, or 40%. Essential items attract 5%; most services and standard goods fall at 18%; luxury and sin/demerit goods attract the special 40% rate. The earlier 12% and 28% slabs have been withdrawn. The slab for a specific product is governed by HSN code classification.
CGST, SGST, IGST, and UTGST explained
Intra-state transactions split the slab equally into CGST (central) and SGST (state). Inter-state transactions attract IGST at the full slab rate, collected by the centre and shared with the destination state. Supplies to union territories use UTGST in place of SGST.
GST on payment gateway fees
Payment gateway and payment aggregator fees charged to merchants attract 18% GST. This is an input tax credit (ITC)-eligible expense for GST-registered businesses, meaning the tax paid on gateway fees can offset GST collected on outgoing invoices.
Filing and compliance basics
GST-registered businesses file GSTR-1 (outward supplies), GSTR-3B (monthly summary), and annual GSTR-9. Digital businesses and payment platforms are subject to TCS provisions under GST for marketplace supplies.
CGST, SGST, IGST and UTGST: what is the difference?
| Tax type | Full name | Applies to | Collected by |
|---|
| CGST | Central Goods and Services Tax | Intra-state supply | Central government |
| SGST | State Goods and Services Tax | Intra-state supply | State government |
| IGST | Integrated Goods and Services Tax | Inter-state supply and imports | Centre (shared with destination state) |
| UTGST | Union Territory GST | Supplies in union territories | Union territory administration |
Frequently asked questions
Q1
What is GST and when did it come into effect?
GST (Goods and Services Tax) is an indirect tax that replaced multiple central and state taxes in India. It came into effect on 1 July 2017 and is administered under the GST Act.
Q2
How do I calculate GST on an invoice amount?
If your price is exclusive of GST: multiply the amount by the GST rate percentage and add it to get the total. If your price is inclusive of GST: divide the total by (1 + rate/100) to get the base price, then subtract to find the GST component.
Q3
What is the difference between CGST, SGST, and IGST?
CGST and SGST apply to intra-state sales, splitting the slab rate equally between centre and state. IGST applies to inter-state sales and imports, collected by the central government.
Q4
Is GST on payment gateway fees refundable?
If your business is GST-registered, the 18% GST charged on payment gateway fees is an input tax credit (ITC) you can claim, effectively making it a recoverable cost.
Q5
Which GST slab applies to digital services?
Most digital services, software, and payment processing services attract 18% GST in India.
Q6
What is the GST slab for payment gateway and payment aggregator fees?
Payment gateway and payment aggregator services attract 18% GST. This applies to the transaction fee, setup fee, and annual maintenance charges levied by the gateway. The 18% rate falls under the financial and payment services category.
Q7
Can I claim input tax credit (ITC) on payment gateway GST charges?
Yes. If your business is GST-registered, the 18% GST charged on payment gateway fees qualifies as input tax credit (ITC). You can offset this against your GST liability on outward supplies, effectively recovering the tax. Ensure the invoice is from a GST-registered gateway provider and the expense is for business purposes.
Q8
What is the reverse charge mechanism and does it apply to payment gateways?
The reverse charge mechanism (RCM) shifts the liability to pay GST from the supplier to the recipient. It applies to specific categories notified by the government. Payment gateway fees from domestic registered providers are not covered under RCM; the gateway charges and remits GST directly. However, fees from foreign payment processors may attract RCM under the import of services provisions.
Calculator outputs are estimates based on the values you enter. They are for planning and education purposes only and do not constitute financial, tax, or legal advice. Actual amounts may vary based on applicable regulations, your business category, lender terms, and individual circumstances.