Quick answer
For shoppers in India, show GST-inclusive prices: it is what consumers expect, it matches MRP labelling rules for packaged goods, and it avoids surprise totals at checkout. GST-exclusive pricing can suit stores selling mainly to businesses, who claim input tax credit. Either way, your invoice should show the taxable value and the GST separately.
If you sell to consumers in India, show prices with GST included. It is what shoppers expect, it matches the rule that MRP on packaged goods is inclusive of all taxes, and it avoids the unpleasant surprise of a higher total at checkout. GST-exclusive prices, with tax added at checkout, make sense mainly for stores that sell to other businesses, who think in pre-tax prices because they claim input tax credit. Whichever you choose, your invoice still shows the taxable value and GST separately.
This is general information to help you decide. GST rules have detail and exceptions, so confirm your own situation with a chartered accountant.
What does GST-inclusive pricing mean?
A GST-inclusive price already contains the tax. If a kurta is listed at ₹1,180 inclusive of 18% GST (an example rate; check the rate for your product), the shopper pays ₹1,180. Behind the scenes, ₹1,000 is the taxable value and ₹180 is GST you pay to the government.
To find the taxable value from an inclusive price: divide by (1 + rate). For 18%, that is ₹1,180 ÷ 1.18 = ₹1,000. The free GST calculator does this both ways.
What does GST-exclusive pricing mean?
A GST-exclusive price is shown before tax, and GST is added at checkout or on the invoice. The same kurta would be listed at ₹1,000 + GST, and the shopper pays ₹1,180 at the end. This is common in B2B catalogues, wholesale price lists and services quoted to companies.
Which do Indian shoppers expect?
Consumers in India are used to seeing one final price on the shelf, the menu and the box. A product page that says ₹1,000 and a checkout that says ₹1,180 feels like a hidden charge, even when it is perfectly legal, and it is a common reason shoppers leave at checkout. Our guide to abandoned carts covers other surprise costs.
For packaged goods sold to consumers, Legal Metrology rules require the MRP on the package to be inclusive of all taxes, and you cannot charge more than the MRP. If your product carries an MRP, your selling price, including GST, should not exceed it.
How do the two approaches compare?
| GST-inclusive | GST-exclusive | |
|---|---|---|
| Best for | Consumers (B2C) | Businesses (B2B), wholesale |
| What the shopper sees | One final price | Price plus GST at checkout |
| Checkout surprise | None | Total rises at the end |
| Fits MRP labelling | Yes | Needs care for packaged goods |
| Price changes when GST rate changes | Your margin changes unless you reprice | Shopper's total changes; your price stays |
| Comparison with marketplaces | Easy, like for like | Can look cheaper at first glance |
What happens to your margin with inclusive pricing?
With inclusive pricing, the GST comes out of the price the customer pays, so you need to price with the tax in mind. Say a product costs you ₹600 and you want to sell it at ₹1,180 inclusive of 18% GST. Your taxable value is ₹1,000, not ₹1,180, so your gross margin before other costs is ₹400, not ₹580. Sellers new to GST sometimes forget this and find their margins thinner than expected. Our profit per order guide shows the full calculation including delivery and gateway fees.
If the GST rate on your product changes, an inclusive price means either your margin changes or you update the price. Keep an eye on rate notifications for your HSN codes; our HSN codes and GST rates guide explains how to look them up.
How should B2B stores show prices?
If most of your buyers are businesses (shops, offices, manufacturers, restaurants), exclusive pricing is normal and expected. They compare the pre-tax price, claim the GST as input tax credit, and need your GSTIN and theirs on the invoice. Make it clear everywhere: "All prices exclude GST" near the price and in the cart. If you sell to both consumers and businesses, many stores show inclusive prices and simply produce a proper tax invoice with GST shown separately, which businesses can use to claim credit.
How does the invoice handle each?
Whichever way you display prices, a GST tax invoice shows the taxable value, the GST rate, and the tax amount, split into CGST and SGST for buyers in your state or IGST for buyers in another state. It also shows your GSTIN and the HSN code of each item.
UpMinutes supports both approaches. In the dashboard, choose whether your prices include GST (the usual choice in India) or have GST added on top. Set the HSN code and GST rate per product. Each order then gets a numbered GST invoice PDF with your logo, CGST+SGST or IGST worked out from the shopper's state, and the HSN per product. You can also download bulk invoices and tax reports for your accountant. Read GST basics for online sellers for the wider picture.
How should the product page and cart word it?
Small wording choices remove doubt. Near the price on each product page, add a short line such as "Inclusive of all taxes" or, for B2B stores, "Excl. GST". In the cart, show the subtotal, delivery and the final total clearly, and if prices include GST, a line such as "Includes ₹180 GST" reassures business buyers without changing the total. Keep the same wording in emails, WhatsApp messages and any printed catalogue, so a price quoted on Instagram matches the price at checkout. If you run offers, make sure the discount shown in the cart is the same one printed on the invoice; mismatches cause most of the questions accountants and customers ask later.
What about delivery charges and discounts?
Delivery charges and discounts affect the taxable value, and the right treatment can depend on how you supply and invoice. Two practical points:
- Delivery charges you collect from the customer are often treated as part of the supply and taxed accordingly. Ask your CA how to handle them for your products.
- Discounts shown on the invoice at the time of sale generally reduce the taxable value. Be consistent in how coupons appear on invoices.
Gift cards are a special case: in UpMinutes, no GST is charged on the gift card itself, and GST applies when the card is spent on products.
Do prices for customers abroad include GST?
Exports of goods are generally zero-rated under GST, under conditions such as a letter of undertaking or paying IGST and claiming a refund. This is an area to discuss with your CA before you ship abroad. On an UpMinutes store, visitors abroad see guide prices in up to 12 currencies, while orders are charged in rupees; check with your CA how to set prices and invoices for export orders. Our guide to international shipping from India covers the practical side.
A quick decision guide
- Selling mainly to consumers? Show GST-inclusive prices.
- Selling packaged goods with MRP? Inclusive, and never above MRP.
- Selling mainly to businesses? Exclusive is fine; say "excl. GST" clearly.
- Mixed audience? Inclusive prices, with a full tax invoice for business buyers.
- Not GST-registered yet? You should not charge GST at all; show your plain price, and speak to a CA about when registration applies to you.
More payment and tax guides are in the payments and GST category.
Frequently asked questions
Is it legal to show prices without GST on my website?
It is common for B2B stores, but for consumers the final price should be clear before they pay, and packaged goods must not be sold above an MRP that includes all taxes. Make sure shoppers are not surprised at checkout.
How do I calculate GST from an inclusive price?
Divide the inclusive price by one plus the rate to get the taxable value, then subtract to get the GST. For an 18% rate, divide by 1.18.
Can I switch from exclusive to inclusive pricing later?
Yes, but plan it: reprice products so your margins still work, update any printed price lists, and tell regular business customers about the change.
Should the invoice show GST separately if my price is inclusive?
Yes. A tax invoice shows the taxable value and the GST amount separately, whichever way you display prices on the store.
