Evergreen concept
GuideGST Inclusive vs Exclusive Pricing
Understand GST-inclusive vs exclusive quotes, how to add or remove tax, and when CGST/SGST vs IGST applies — with Tools.Town GST Calculator.
A ₹1,000 “exclusive of GST @ 18%” quote and a ₹1,000 “inclusive of GST @ 18%” quote are not the same deal. Exclusive adds tax on top. Inclusive already embeds tax inside the sticker price.
Use the GST Calculator to add or remove tax. This page explains which mode to pick.
Exclusive (tax on top)
Base × (1 + rate) = gross.
Example: base ₹1,000, GST 18% → tax ₹180 → customer pays ₹1,180.
Common on B2B quotes and rate cards where the seller wants the base visible.
Inclusive (tax inside)
Gross ÷ (1 + rate) = base; tax = gross − base.
Example: inclusive ₹1,180 at 18% → base ₹1,000 → tax ₹180.
Common on consumer MRPs and some marketplace listings.
Same sticker, different meaning
| Quote text | Buyer pays at 18% GST |
|---|---|
| ₹1,000 exclusive | ₹1,180 |
| ₹1,000 inclusive | ₹1,000 (tax already inside) |
Always read the words inclusive / exclusive / +GST before comparing vendors.
CGST + SGST vs IGST
For intra-state supplies, 18% often splits as 9% CGST + 9% SGST. For inter-state, the same 18% is usually IGST. The calculator shows both modes; your invoice must follow place-of-supply rules — not just the math.
Invoice workflow
- Decide if your rate card is inclusive or exclusive.
- Run GST Calculator (Add GST or Remove GST).
- Paste figures into Invoice Generator.
- Validate the counterparty GSTIN format with GST Number Validator when relevant.
Related
Frequently Asked Questions
What does GST exclusive mean?
The listed price is before tax. GST is added on top to get the amount the buyer pays.
What does GST inclusive mean?
The listed price already includes GST. You back-calculate the base and tax components.
Does this replace GST filing advice?
No. It explains pricing math. Place of supply, exemptions, and returns need professional/official guidance.