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How to extract GST from MRP

The MRP includes GST. Here's the simple method to pull out the tax and the base price — with examples at every slab.

By the Launch My Office team · Updated 2026-06-22 · 5 min read

MRP (Maximum Retail Price) is always GST-inclusive. To know how much tax sits inside it — useful for invoicing, books and margin — you "extract" the GST. The Reverse GST Calculator automates this, but the method is easy to learn.

The method

  1. Identify the GST rate for the product (via the HSN Code Finder).
  2. Base price = MRP ÷ (1 + rate).
  3. GST amount = MRP − base price.
  4. Split GST into CGST/SGST (half each) for intra-state, or keep as IGST for interstate.

Worked examples

MRPRateBase priceGST
₹5005%₹476.19₹23.81
₹50012%₹446.43₹53.57
₹50018%₹423.73₹76.27
₹2,00028%₹1,562.50₹437.50

Splitting into CGST/SGST

For a sale within the same state, the extracted GST splits equally: an 18% total becomes 9% CGST + 9% SGST. For interstate, the whole amount is IGST. See interstate GST for details.

Rounding matters on invoices. Let the calculator handle the paise so your totals reconcile cleanly.

Why it matters for sellers

Your real revenue is the base price; the GST is collected on the government's behalf. Always judge profitability on the base value.

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Frequently asked questions

Is MRP inclusive of GST?

Yes. MRP is the maximum price including all taxes. To find the base value you extract the GST out of it.

What's the formula to extract GST?

Base = MRP ÷ (1 + rate); GST = MRP − base. For 18%, divide MRP by 1.18.

How do I split extracted GST?

Equally into CGST and SGST for intra-state sales, or keep it whole as IGST for interstate sales.

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