MRP ₹1,999, 25% off, 18% GST included
You pay ₹1,499.25. GST inside is ₹228.70 and you save ₹499.75.
The discount comes off first and GST is worked out on the discounted price. In India the printed MRP already includes GST, so choose that option for packaged goods.
The price I have is
2 thousand
GST rate
You pay
₹1,499
₹500 saved. ₹229 of what you pay is GST at 18%.
Sales shout the discount and hide the tax. Here is a simple way to see the real figure: take the discount off first, then work the tax on what is left.
A Bluetooth speaker has an MRP of ₹1,999 and a 25% discount. You pay ₹1,499.25. Since the MRP already includes 18% GST, about ₹228.70 of that is tax and ₹1,270.55 is the price of the speaker. You saved ₹499.75, and part of that saving is tax you do not have to pay.
If your price is before GST, as on many business quotations, the order is the same but GST is added at the end. A ₹1,000 item with 10% off and 18% GST comes to ₹1,062.
Stacked offers confuse people. A 25% store discount followed by a further 10% coupon is not 35% off. It is 1 − 0.75 × 0.90 = 32.5% off, which is why the tool has a second discount box.
after discount =price × (1 − d); with GST =after discount × (1 + g)Read the full methodologyFound an error? Contact us
Each example is worked out by the same code as the calculator above.
You pay ₹1,499.25. GST inside is ₹228.70 and you save ₹499.75.
₹900 after the discount, then ₹162 GST, so ₹1,062.
The frame shows the tool only.
<iframe src="/embed/discount-with-gst-calculator" title="Discount with GST" width="100%" height="720" style="border:0;max-width:42rem" loading="lazy"></iframe>On the discounted price, when the discount is shown on the invoice. That is why a discount cuts the tax as well.
Yes, for packaged goods the MRP is the maximum price including all taxes.
Since 22 September 2025 the main rates are 5% and 18%, with 40% on a few luxury and sin goods and nil on many essentials. Older bills may show 12% or 28%. The rate is printed on the invoice.
They multiply, they do not add. 25% then 10% off is 32.5% off, not 35%.