Business
7 min readGST explained for small businesses, without the jargon
Inclusive vs exclusive pricing, CGST/SGST splits and the quick maths you should be able to do in your head.
By Priya Nair · May 11, 2026
Inclusive vs exclusive
If a price already contains tax, the base is price ÷ (1 + rate). If tax has to be added on top, tax is base × rate. Mixing these up is the single most common invoicing error.
How the split works
For supply inside a state, the total GST is divided equally between CGST and SGST. For inter-state supply, the full amount is charged as IGST.
Pricing with margin in mind
Set your selling price from your target margin first, then apply GST — not the other way round. Our Margin Calculator gives you the price you need before tax.