5% GST on ₹1 lakh

₹1,00,000: GST exclusive vs inclusive

• Exclusive (adding GST): GST = ₹1,00,000 × 5 ÷ 100 = ₹5,000.
• Inclusive (removing GST): base = ₹1,00,000 × 100 ÷ 105 = ₹95,238.10; GST = ₹1,00,000 − ₹95,238.10 = ₹4,761.90.

CGST, SGST and IGST split

Within a state, the 5% is split equally into CGST and SGST (UTGST in union territories without a legislature) at 2.5% each. On a sale to another state, or an import, the full 5% 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.

What is taxed at 5%

5% is the lower merit rate of GST 2.0. Items moved to it from 12% or 18% include hair oil, toilet soap, shampoo, toothbrushes and toothpaste, bicycles, kitchenware, most packaged foods (namkeen, sauces, pasta, instant noodles, chocolates, coffee, butter, ghee), tractors and farm machinery, most medicines, hotel rooms up to ₹7,500 a night, and gym, salon and barber services.

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

5% GST on other amounts

• ₹100
• ₹500
• ₹1,000
• ₹2,000
• ₹5,000
• ₹10,000
• ₹25,000
• ₹50,000
• ₹1 lakh
• ₹10 lakh

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