12% GST on ₹1 lakh

₹1,00,000: GST exclusive vs inclusive

• Exclusive (adding GST): GST = ₹1,00,000 × 12 ÷ 100 = ₹12,000.
• Inclusive (removing GST): base = ₹1,00,000 × 100 ÷ 112 = ₹89,285.71; GST = ₹1,00,000 − ₹89,285.71 = ₹10,714.29.

CGST, SGST and IGST split

Within a state, the 12% is split equally into CGST and SGST (UTGST in union territories without a legislature) at 6% each. On a sale to another state, or an import, the full 12% is charged as IGST.

Shown to the paisa. On an invoice, tax is usually rounded to the nearest rupee or paisa as your billing software is set up.

The 12% slab before 22 September 2025

Before 22 September 2025, 12% applied to items such as packaged foods, many medicines, bicycles, tractors and hotel rooms up to ₹7,500. GST 2.0 removed the 12% slab for most goods and services, moving them mainly to 5% (some to nil or 18%). Use these figures for invoices dated before 22 September 2025, and for credit notes or returns that relate to that period.

The rate for a particular item depends on its HSN code (goods) or SAC code (services), so confirm it in the CBIC rate notifications before you invoice.

Source: Recommendations of the 56th Meeting of the GST Council, Ministry of Finance press release, 3 September 2025 (PIB) (also on the GST Council website): a 5% merit rate, an 18% standard rate and a special 40% de-merit rate, with the rate changes on goods and services effective from 22 September 2025.

₹1,00,000 at every GST rate

12% GST on other amounts

• ₹1,000
• ₹10,000
• ₹1 lakh

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