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Tax

GST Calculator — Mumbai (Maharashtra SGST) FY 2025-26

For businesses and consumers in Mumbai, Maharashtra: intra-state GST splits equally between CGST and Maharashtra SGST (each at half the applicable rate), while inter-state supplies attract IGST at the full rate. At 18% GST on a Rs 1L invoice within Maharashtra: CGST = Rs 9,000 + Maharashtra SGST = Rs 9,000 = total Rs 18,000 GST. GST registration is mandatory above Rs 20L/year for services and Rs 40L/year for goods in Maharashtra.

Verified Formula|Source: Income Tax Department, Government of India|Last verified: April 2026Methodology

GST Details

Calculate GST on top of the base amount

Inter-State Supply (IGST)

CGST + SGST applies for intra-state transactions

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Net Price

₹1,00,000

GST Amount

₹18,000

Total Price

₹1,18,000

GST Breakdown

Base Amount₹1,00,000
CGST @ 9%₹9,000
SGST @ 9%₹9,000
Total GST₹18,000
Net Price (Excl. GST)₹1,00,000
Total Price (Incl. GST)₹1,18,000

Price Composition

Common GST Rates — Quick Reference

Item / CategoryGST Rate
Essential food items (rice, wheat, milk)0%
Packaged food, butter, ghee5%
Processed food, mobile phones12%
Electronics, shampoo, AC restaurants18%
Luxury cars, aerated drinks, tobacco28%
Gold, silver, platinum3%
Rough diamonds0.25%

Input Tax Credit (ITC)

Businesses registered under GST can claim Input Tax Credit on GST paid on purchases, effectively reducing the GST liability on their sales. Ensure timely GSTR-2B reconciliation to maximize your ITC claims.

GST in Mumbai: CGST, Maharashtra SGST, and IGST — FY 2025-26 Guide

Goods and Services Tax (GST) in Mumbai, Maharashtra operates under a dual structure administered jointly by the Government of India and Maharashtra state government. Whether you are a business owner in the Bandra Kurla Complex (BKC) area, a consumer buying services inMumbai, or a freelancer invoicing clients across India, the applicable GST component — CGST + Maharashtra SGST or IGST — depends on whether the supply is intra-state or inter-state. Mumbai hosts Asia's oldest stock exchange (BSE, est. 1875), SEBI headquarters, and NSDL — making it the only city where you can physically visit all three equity market pillars. Maharashtra's professional tax at Rs 2,500/year is the highest in India.

CGST vs Maharashtra SGST vs IGST: How It Works in Mumbai

The fundamental rule:

  • Intra-state supply (supplier and recipient both in Maharashtra): GST = CGST (central government) + Maharashtra SGST (Maharashtra government), each at half the total GST rate. On a Rs 1,00,000 invoice at 18%: CGST Rs 9,000 (9%) + Maharashtra SGST Rs 9,000 (9%).
  • Inter-state supply (supplier in Maharashtra, recipient in another state, or vice versa): GST = IGST at the full rate. Same Rs 1,00,000 invoice at 18%: IGST = Rs 18,000 (18%), all to central government (then apportioned to destination state).
  • Import of services: IGST under Reverse Charge Mechanism (RCM) — the recipient in Mumbai pays GST to the government. Common for Mumbai's businesses using foreign software, cloud services, or overseas consultants.

GST Rates Applicable to Mumbai's Economy

The four main GST rate slabs apply uniformly across Mumbai:

  • 5% GST: Essential goods and basic services. For Mumbai: non-AC restaurant meals (no ITC for restaurant), economy hotel stays (room rate below Rs 7,500/night), packaged foods with certain HSN codes, economy air travel (excluding fuel surcharge), electric vehicles, and textile goods below Rs 1,000.
  • 12% GST: Mid-range goods and services. Relevant for Mumbai: hotel stays Rs 7,500–12,000/night, processed food, computers and laptops (with exceptions), smartphones above Rs 20,000 category, business class air travel, construction of affordable housing.
  • 18% GST: Most services and manufactured goods. This is the dominant GST rate for Mumbai's Financial Services sector — IT services, consulting, financial services, insurance (excl. life insurance), telecom, steel, chemicals, paints, AC restaurants, hotel stays above Rs 12,000/night.
  • 28% GST: Luxury and demerit goods. Mumbai: automobiles (plus cess), luxury hotels, tobacco products, gambling and racing activities, luxury cement. Plus additional cess on many 28% items.

Financial Services Sector GST in Mumbai

Mumbai's dominant Financial Services sector — represented by employers like Tata Group, Reliance Industries, HDFC Bank — operates primarily under 18% GST for domestic B2B service invoices. Key GST considerations for Mumbai IT businesses:

  • Software services export (zero-rated): IT exports from Mumbaito overseas clients are zero-rated with a Letter of Undertaking (LUT). No GST is charged on the invoice, and businesses can claim refund of Input Tax Credit on inputs used. Filing monthly LUT for exports is critical for Mumbai IT exporters.
  • Domestic IT B2B invoices: 18% GST applies. On a Rs 10L monthly invoice to a Maharashtra client: CGST Rs 90,000 + Maharashtra SGST Rs 90,000 = Rs 1.8L total GST. This is fully recoverable as Input Tax Credit by the recipient if they are GST-registered.
  • SaaS and software products: 18% GST on perpetual licences, 12% on some packaged software. Cloud-based SaaS services are 18% regardless of how subscription is structured.
  • Professional and consulting services: 18% GST under SAC 9983/9985. Freelancers and consultants in Mumbai billing above Rs 20L/year must register for GST and charge 18% CGST + Maharashtra SGST on domestic invoices.
  • Commercial property rent: If annual commercial rent in Mumbaiexceeds Rs 20L and the landlord is a GST-registered entity, 18% GST applies. At estimated commercial rents of Rs 1,12,500/month in Mumbai, annual commercial rent is Rs 13,50,000. Annual commercial rent is below Rs 20L — GST on rent may not apply if the landlord is under threshold.

Input Tax Credit (ITC) for Mumbai Businesses

GST-registered businesses in Mumbai can claim Input Tax Credit on GST paid for goods and services used in their business. ITC rules in Maharashtra:

  • CGST paid can offset CGST or IGST liability; Maharashtra SGST paid can offset Maharashtra SGST or IGST; IGST can offset any GST liability (IGST first, then CGST, then SGST).
  • Conditions for ITC: Valid tax invoice, goods/services received, GST filed by supplier (reflected in GSTR-2B), and payment made to supplier within 180 days.
  • ITC blocked items: Motor vehicles (for personal use), employee-related food and beverages, club memberships, health insurance for employees (unless mandatory under law), works contract for immovable property.
  • ITC reconciliation: GSTR-2B (auto-populated) vs your purchase register must be reconciled monthly. Mismatch can lead to ITC disallowance and penalty — a critical compliance task for Mumbai's MSMEs and large businesses alike.

GST Registration Threshold and Compliance for Mumbai

GST registration is mandatory in Maharashtra when aggregate turnover exceeds:

  • Rs 40 lakh/year for goods suppliers (Rs 20L for special category states — not applicable to Maharashtra).
  • Rs 20 lakh/year for service providers.
  • Any threshold for inter-state supplies, e-commerce operators, or businesses with taxable supplies despite low turnover.

Mumbai freelancers and consultants in the Financial Services sector who provide services to clients in other states must register for GST irrespective of turnover — even a single inter-state invoice triggers mandatory registration. Return filing: GSTR-1 (monthly/quarterly for outward supplies) + GSTR-3B (monthly summary + tax payment) + GSTR-9 (annual reconciliation). Businesses in Mumbai with turnover above Rs 5 crore must file GSTR-1 monthly. Below Rs 5 crore, quarterly GSTR-1 filing is available under the QRMP scheme.

Composition Scheme: For Small Mumbai Businesses

Small Mumbai businesses with annual turnover below Rs 1.5 crore (goods) or Rs 50 lakh (services) can opt for the Composition Scheme — pay a fixed percentage of turnover as GST (1% for goods, 6% for services including restaurants) without ITC. Composition dealers cannot raise a tax invoice or collect GST from customers, and cannot supply inter-state. This suits small retailers, restaurants, and service providers inMumbai's Bandra and Andheri local markets who do primarily local business.

Disclaimer

GST rates and rules are based on notifications effective as of FY 2025-26. Specific HSN/SAC codes may attract different rates. Special economic zone (SEZ) supplies are zero-rated. E-invoicing is mandatory above certain turnover thresholds. Consult a GST practitioner or Chartered Accountant in Mumbai for business-specific compliance guidance.

Frequently Asked Questions — GST in Mumbai

What is the difference between Maharashtra SGST and SGST? Is Maharashtra SGST the same as SGST?

Yes — Maharashtra SGST is the State GST (SGST) for Maharashtra. The term "SGST" in the GST framework is referred to by each state's specific name: Maharashtra's SGST is "Maharashtra SGST", Karnataka's is "Karnataka SGST", etc. For Mumbai (Maharashtra), all intra-state transactions split GST into CGST (Central GST) and Maharashtra SGST (MaharashtraSGST), each at half the applicable rate. On an 18% intra-state invoice of Rs 1,00,000: CGST = Rs 9,000 andMaharashtra SGST = Rs 9,000.

Do I need to charge GST on my Mumbai freelance income?

You need to register for GST if your annual freelance income exceeds Rs 20 lakh (services threshold for Maharashtra) or if you supply services to clients in other states (inter-state supply triggers mandatory registration at any turnover). Once registered, you charge 18% GST (CGST 9% + Maharashtra SGST9%) on domestic invoices. If you export services to overseas clients, it's zero-rated with an LUT — no GST charged, but you can claim ITC refunds on inputs. Mumbai's thriving Financial Services freelance economy means many consultants hit the Rs 20L threshold quickly — plan your GST registration well in advance to avoid retrospective compliance issues.

What GST applies on restaurant bills in Mumbai?

GST on restaurants in Mumbai depends on the type. Non-AC restaurants (standalone, not in hotels with room tariff above Rs 7,500): 5% GST (CGST 2.5% + Maharashtra SGST 2.5%), no Input Tax Credit. AC restaurants or those in 5-star hotels: 18% GST (CGST 9% +Maharashtra SGST 9%), no ITC. On a Rs 5,000 dinner: 5% restaurant = Rs 250 GST; 18% restaurant = Rs 900 GST. Restaurant GST cannot be claimed as ITC by the customer — it is a final consumer cost. Zomato/Swiggy delivery orders from restaurants also attract 5% GST (collected by the platform, not the restaurant).

How does GST work for Mumbai businesses buying from another state?

When a Mumbai (Maharashtra) business buys goods or services from a supplier in another state, IGST (Integrated GST) applies at the full rate. For example, buying software services from a Bengaluru vendor (if you are in Mumbai, Maharashtra): 18% IGST applies. You pay IGST on the invoice, which is deposited with the central government and then apportioned to the consuming state. As a Maharashtra registered business, you can claim the IGST paid as Input Tax Credit. ITC utilisation order: first against IGST liability, then CGST, then Maharashtra SGST. This seamless cross-state ITC chain is one of GST's major improvements over the pre-GST era when inter-state purchases suffered from cascading VAT and CST costs.

Mumbai's GST landscape is defined by financial services — the city's dominant economic sector where nearly every transaction involving banking, insurance, mutual funds, and capital markets carries 18% GST. Unlike manufacturing-heavy cities where ITC chains are straightforward, Mumbai's BFSI (Banking, Financial Services, Insurance) sector faces the most complex Input Tax Credit restrictions in India: banks can claim ITC only on inputs used for taxable supplies, creating 'reversal' calculations under Rule 42/43 for exempt supplies like interest income. Real estate GST is Mumbai's second major complexity: under-construction residential properties attract 5% GST (without ITC benefit to the builder) on the sale consideration, while commercial properties attract 12%. The 50-sqm carpet area exemption (PMAY affordable housing: 1% GST without ITC for units below Rs 45L with specific conditions) applies to limited Mumbai properties given the city's high property values. Restaurant GST: 5% for non-AC restaurants, 5% for hotels below Rs 7,500/night room tariff, 18% for AC restaurants and premium hotel dining. GST on professional services (CA, CS, advocates) charged by Mumbai's professional firms: 18% flat. Annual GST collection from Maharashtra alone (predominantly Mumbai-driven) represents 15%+ of India's total GST collection — making Mumbai the GST compliance capital.

Key Insight — Mumbai

Mumbai's defining GST insight is the bank/BFSI ITC reversal complexity — where Mumbai's Nariman Point/BKC-headquartered banks and financial institutions face the most technically demanding GST compliance exercise in India: computing the proportion of ITC that must be reversed for exempt supplies (interest income). Banks earn BOTH taxable income (processing fees, locker charges, forex margin at 18% GST) AND exempt income (interest on loans, which is not subject to GST as interest is not a 'supply' under GST). The Rule 42/43 ITC reversal: Total ITC claimed on inputs → multiply by (exempt turnover / total turnover) → this proportion must be reversed (not claimed). For HDFC Bank with Rs 80,000Cr total turnover: Rs 60,000Cr interest income (exempt), Rs 20,000Cr fee-based income (taxable). Exempt proportion: 75%. If total input GST (on IT systems, office rent, professional services) = Rs 500Cr → reversal = Rs 500Cr × 75% = Rs 375Cr. The bank can only claim ITC on Rs 125Cr. This is why Mumbai banks' effective GST compliance cost is enormous: not just filing complexity but the actual ITC restriction effectively makes GST on Rs 375Cr of their input costs a real cost rather than a recoverable tax. For Mumbai's smaller NBFCs, insurance companies, and investment managers: similar ITC reversal calculations apply but at smaller scale. The compliance burden: monthly GSTR-3B with Rule 42 calculations, annual reconciliation in GSTR-9, and potential audit adjustments create Rs 2-5L annual CA/consultant costs even for Rs 5Cr NBFC in Mumbai.

Mumbai's Financial Context and GST Calculator

Maharashtra SGST: 9% (combined with CGST 9% = 18% for standard rated goods/services, or 14% SGST+CGST for 28% items minus GST compensation cess). GST registration threshold: Rs 20L turnover (Rs 40L for goods-only suppliers). Mumbai financial services: banking (18% GST on fees, excludes interest on loans/deposits); insurance premium GST: life insurance 18% on loaded premium, health insurance 18% on premium; mutual fund management fee: 18% on Total Expense Ratio component. Real estate under-construction: 5% GST on flat value (no ITC) for residential; 12% for commercial. Ready-to-move (OC received): zero GST — major reason for resale market preference in Mumbai. Restaurant GST: 5% (all restaurants, no ITC) — no more 18% GST for AC restaurants post-October 2019 rationalization. Hotels: rooms above Rs 7,500/night: 18% GST; below Rs 7,500: 12%. Composition scheme: turnover ≤ Rs 1.5Cr → 1% for traders/manufacturers, 5% for restaurants — not available for service providers (bank, insurance agents cannot use composition). E-commerce (Amazon/Flipkart sellers in Mumbai): TCS 1% deducted by platform → offset in GST return. Professional services: 18% GST. Export of services (Mumbai IT/legal/finance firms to foreign clients): zero-rated with LUT → no GST, but full ITC available.

Real Estate GST in Mumbai — Under-Construction vs Ready-to-Move Tax Differential

Mumbai's property market is structured around a significant GST differential between under-construction and ready-to-move (OC-received) properties — a gap that directly influences buyer behaviour and builder pricing strategies. Under-construction residential property: 5% GST on the total sale consideration (including land value, though GST technically applies only to construction services). The 5% rate is without ITC — builders who pay 18% GST on cement, steel, and professional services CANNOT claim ITC for residential projects, making the builder's input GST a pure cost. The cost to builder: at Rs 2,000/sqft construction cost, 18% GST on Rs 2,000 = Rs 360/sqft of input GST that the builder bears as cost. This is embedded in the unit price. Ready-to-move (OC received) residential: ZERO GST. This creates a 5% advantage for OC-received properties that partly explains Mumbai's premium for ready-to-move inventory in Powai, Thane, and Navi Mumbai. Joint development agreements (JDA): Mumbai's abundant JDA structures (landowner provides land, developer develops and shares units) create GST complexity — the developer provides 'construction services' to the landowner and must pay GST on the value of developer's share. Section 7(1)(a): JDA is treated as 'supply' from developer to landowner → 18% GST on construction value of landowner's share. Commercial property under-construction: 12% GST (builder cannot claim ITC). Commercial property resale (OC received): zero GST. GST on maintenance charges: Housing societies in Mumbai charge maintenance → if monthly charges exceed Rs 7,500 per flat, GST at 18% applies on the ENTIRE amount (not just the excess). Most premium Bandra/Juhu societies exceed this threshold. For Mumbai's affordable housing projects (RERA registered, PMAY): 1% GST without ITC for carpet area ≤ 60 sqm and value ≤ Rs 45L — almost no Mumbai property qualifies at these limits.

Mumbai's Export of Services — LUT Mechanism for BFSI and IT Firms

Mumbai's large BFSI consulting, IT services, and legal firms that provide services to international clients must navigate the 'export of services' GST treatment. Under Section 16(1)(a) of IGST Act: supply of services to a foreign recipient with payment received in convertible foreign exchange = zero-rated supply (no GST). To export services without paying GST: file a Letter of Undertaking (LUT) in Form RFD-11 on GST portal before the export transaction. Once LUT is filed: raise invoice to foreign client without GST (zero-rated). Claim full ITC on inputs used for providing the exported service. No cash refund needed — ITC is utilised to offset domestic GST liability. Without LUT: must pay IGST 18% on export invoice → then claim refund. LUT mechanism is strongly preferred (avoids cash flow blockage). Who qualifies for LUT: all registered persons who intend to supply services to foreign clients — no minimum export value. Annual renewal: LUT must be renewed each financial year. Mumbai law firms advising UAE/UK clients: LUT → zero-rated invoice → claim ITC on office rent, courier, IT subscriptions. Mumbai financial advisory firms: if advisory services provided to foreign PE fund → zero-rated → ITC on research subscriptions, Bloomberg terminals (18% GST) is fully claimable. Common GST error by Mumbai's smaller exporters: charging 18% GST on foreign client invoices when LUT is not filed → foreign client cannot claim ITC (they're in another country) → loses Mumbai firm's competitiveness. Always file LUT before any export service invoice.

More Questions — GST Calculator in Mumbai

I'm buying a Rs 1.2Cr under-construction flat in Thane (Mumbai metro region). How much GST do I pay and when?

Under-construction residential GST: GST rate: 5% on consideration paid to builder. On Rs 1.2Cr flat: GST = Rs 1.2Cr × 5% = Rs 6L total GST. Important: The Rs 1.2Cr agreement value typically includes land component. For GST purposes, the 'consideration' is the full Rs 1.2Cr (GST applies on entire amount for residential, not just construction). Practical note: If builder quotes Rs 1.2Cr 'base price + 5% GST': GST = Rs 6L → total outflow Rs 1.26Cr. When is GST paid: GST is paid progressively as per payment schedule to builder — each installment includes proportionate GST. If paying Rs 12L installment: GST on that installment = Rs 12L × 5% = Rs 60,000 paid with the installment. Builder issues GST invoice (GSTIN visible on invoice). Stamp duty: paid separately on registered agreement value — in Maharashtra, stamp duty is charged on agreement value. GST and stamp duty are both applied on the same base value. NO ITC for buyer: residential flat buyers CANNOT claim ITC on GST paid — 5% is a cost (included in your property acquisition cost for future capital gains computation). After OC: once the builder receives Occupancy Certificate, no further GST on remaining payments. Verify OC status before making final payments. If builder claims OC received but hasn't issued OC certificate: do not pay GST on post-OC installments. Budget 2025 update: no change in residential property GST rate — 5% without ITC continues.

I run a Mumbai startup consulting company (Rs 3.5Cr revenue: Rs 2.5Cr from Indian clients at 18% GST, Rs 1Cr from US client billed without GST under LUT). How does ITC work?

Mixed domestic + export GST profile: Domestic revenue Rs 2.5Cr → collect 18% GST = Rs 45L GST liability. Export revenue Rs 1Cr → zero-rated (LUT filed) → zero GST collected. Total GST liability: Rs 45L (from domestic). Input GST (ITC available): Office rent GST: Rs 10L rent × 18% = Rs 1.8L ITC. Software subscriptions (Zoom, Salesforce, AWS from India): 18% → ITC. Freelancer professional fees (if GST registered): 18% → ITC. Total ITC example: Rs 4L. ITC utilization: Set off Rs 4L ITC against Rs 45L liability → net GST payable = Rs 41L. For the export Rs 1Cr: Since zero-rated under LUT, you claim ITC for inputs attributable to export work. How: If 40% of your inputs (staff, software) are for US client work: 40% × Rs 4L = Rs 1.6L ITC attributable to export. This Rs 1.6L is fully claimable — even though no output GST from export. You claim refund: Since export ITC (Rs 1.6L) creates a credit that can't be set off against domestic liability OR you set it off normally (if you have domestic liability, set off there first). Actually: all ITC pools together — Rs 4L total ITC against Rs 45L domestic liability. No separate refund needed for export ITC since domestic liability absorbs it. If export revenue exceeded domestic: ITC refund available. File GSTR-1 (monthly/quarterly invoice disclosure), GSTR-3B (monthly return + payment), GSTR-9 (annual reconciliation). Maintain invoice-level matching for ITC: each input invoice must be reflected in GSTR-2B.

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