Resources / How GST works for small businesses
How GST works for small businesses
2026-03-18 · 7 min
GST is a tax on supply. For most everyday invoices the question is only: what rate applies, and is the supply inside the state or across a state border?
On a typical same-state supply the tax is split into CGST and SGST. On a typical interstate supply the same total is charged as IGST. The calculator does that split for the rate you enter. It does not decide the legally correct rate.
An exclusive price is the amount before GST. An inclusive price already contains GST. Adding 18% to ₹1,000 is not the same as removing 18% from ₹1,000.
BusinessKit is not the GST portal, not a ministry, and not your chartered accountant. Confirm classification, place of supply and notifications before you file or send a tax invoice that has to stand up later.