By CryptoRedar Editorial · 6 min read
India's Goods and Services Tax (GST) applies to most supplies of goods and services. Whether you invoice clients as a freelancer, run a Shopify store, or manage accounts for an SME, understanding inclusive vs exclusive pricing prevents costly invoice disputes and filing errors.
CGST, SGST, and IGST Explained
For intra-state sales, tax splits into Central GST (CGST) and State GST (SGST) — each typically half the headline rate. Inter-state supplies use Integrated GST (IGST) at the full rate. Our GST Calculator handles all three modes.
Inclusive vs Exclusive Amounts
An exclusive price adds GST on top (₹1,000 + 18% = ₹1,180 total). An inclusive price already contains tax (₹1,000 inclusive at 18% = ₹847.46 base + ₹152.54 GST). Always label quotes clearly on proposals and contracts.
Workflow for Freelancers
- Confirm your GST registration status and applicable rate slab
- Calculate tax before sending invoices
- Reconcile monthly using GSTR-1 and GSTR-3B schedules
- Archive calculation snapshots for audit trails
When to Seek Professional Help
Reverse charge, composition scheme, and multi-state nexus add complexity beyond a standard calculator. Use CryptoRedar for day-to-day arithmetic; engage a chartered accountant for registration, filing, and compliance strategy.