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GST calculator for clothes: 5% or 18% per piece, from MRP or price

By the Tap & Bill team · Updated

How do I calculate GST on clothes?

Take the value of one piece after discount and without GST. If it is ₹2,500 or less, GST is 5%; above ₹2,500 it is 18% (since 22 September 2025). For a price that already includes GST (MRP), GST = MRP × rate ÷ (100 + rate): a ₹999 shirt has ₹47.57 GST inside it at 5%, and a ₹3,000 blazer has ₹457.63 at 18%. Within your state, half is CGST and half SGST.

GST rate5% (one piece is ₹2,500 or less without GST)
Taxable value (without GST)₹951.43
CGST 2.5%₹23.79
SGST 2.5%₹23.78
If sold to another state: IGST 5%₹47.57
One piece without GST₹951.43
Customer pays₹999

Same rule and rounding as the Tap & Bill app. Need a full bill with several items? Use the free GST bill maker.

GST on clothes by MRP: quick table

One piece, tag price includes GST, no discount. Worked out by the calculator above.

MRP (with GST)RateTaxable valueCGSTSGSTTotal GST
₹4995%₹475.24₹11.88₹11.88₹23.76
₹9995%₹951.43₹23.79₹23.78₹47.57
₹1,4995%₹1,427.62₹35.69₹35.69₹71.38
₹1,9995%₹1,903.81₹47.60₹47.59₹95.19
₹2,4995%₹2,380.00₹59.50₹59.50₹119.00
₹2,6255%₹2,500.00₹62.50₹62.50₹125.00
₹2,62618% *₹2,225.42₹200.29₹200.29₹400.58
₹2,95018% *₹2,500.00₹225.00₹225.00₹450.00
₹2,95118%₹2,500.85₹225.08₹225.07₹450.15
₹3,00018%₹2,542.37₹228.82₹228.81₹457.63
₹4,99918%₹4,236.44₹381.28₹381.28₹762.56
₹9,99918%₹8,473.73₹762.64₹762.63₹1,525.27

* ₹2,626 to ₹2,950 is a grey zone for tags that include GST (see below). The app charges 18%.

When the price is before GST

Price before GSTRateGSTCGST + SGSTCustomer pays
₹9995%₹49.95₹24.98 + ₹24.97₹1,049
₹2,4005%₹120.00₹60.00 + ₹60.00₹2,520
₹2,5005%₹125.00₹62.50 + ₹62.50₹2,625
₹2,50118%₹450.18₹225.09 + ₹225.09₹2,951
₹3,00018%₹540.00₹270.00 + ₹270.00₹3,540
₹5,00018%₹900.00₹450.00 + ₹450.00₹5,900

The formulas

  • Add GST: GST = price × rate ÷ 100. ₹3,000 at 18% = ₹540; customer pays ₹3,540.
  • Take GST out of MRP: price without GST = MRP × 100 ÷ (100 + rate). ₹999 at 5% = ₹951.43, GST ₹47.57.
  • Which rate: one piece after discount and without GST ≤ ₹2,500 → 5%; above → 18%. For several pieces on one line, divide the line by the number of pieces.
  • CGST and SGST: half each (5% = 2.5% + 2.5%; 18% = 9% + 9%). Sale to another state: the full rate as IGST.

The ₹2,626 to ₹2,950 grey zone

With an MRP tag that includes GST, you first need the rate to take GST out, but the rate depends on the price without GST. Up to ₹2,625 the answer is clearly 5% (₹2,625 ÷ 1.05 = ₹2,500). From ₹2,951 it is clearly 18% (₹2,951 ÷ 1.18 = ₹2,500.85). In between, the price without GST is above ₹2,500 at 5% and below ₹2,500 at 18%. The Tap & Bill app charges 18% in this band; many shops avoid it by pricing tags at ₹2,625 or below, or above ₹2,950. Ask your CA. The full explanation, with four worked bills, is in GST on clothes: 5% or 18%?

Frequently asked questions

Is GST on clothes 5% or 18%?

It depends on the value of one piece. Since 22 September 2025, readymade garments and footwear sold at ₹2,500 or less per piece (after discount, without GST) carry 5%; above ₹2,500 they carry 18%. The limit is per piece, not per bill: a bill of ten ₹999 shirts is still 5%.

How do I calculate GST from MRP (GST included)?

GST inside the price = MRP × rate ÷ (100 + rate). At 5%: ₹999 × 5 ÷ 105 = ₹47.57, so the taxable value is ₹951.43. At 18%: ₹3,000 × 18 ÷ 118 = ₹457.63, taxable value ₹2,542.37. Half of the GST is CGST and half SGST.

Up to what MRP is GST on clothes 5%?

Up to ₹2,625 with GST included, because ₹2,625 ÷ 1.05 = ₹2,500. From ₹2,951 the piece is clearly 18%. Between ₹2,626 and ₹2,950 the price without GST is above ₹2,500 at 5% but below it at 18%; the Tap & Bill app charges 18% there, and you should confirm the treatment with your CA.

Does a discount change the GST rate?

Yes. The rate is decided on the price after discount. A ₹2,800 kurta sold with ₹400 off is a ₹2,400 piece, so it is 5%: GST ₹120.00, customer pays ₹2,520.

What is the difference between CGST, SGST and IGST?

For a sale within your state, GST is split equally into CGST (central) and SGST (state): 5% = 2.5% + 2.5%, 18% = 9% + 9%. For a sale to a buyer in another state, the whole rate is IGST. The amount is the same.

Is GST on footwear the same as on clothes?

Yes, the same ₹2,500 rule applies per pair since 22 September 2025: 5% up to ₹2,500, 18% above. Accessories such as belts, bags, perfume and watches have their own rates (often 18%); pick “Fixed” for them.

Is this calculator tax advice?

No. It follows the rule as the Tap & Bill app applies it and rounds to the paisa like the app. Rates change; confirm the rate and HSN for your goods with your CA or the CBIC notifications.

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