GST in India has five tax slabs: 0%, 5%, 12%, 18%, and 28%. Understanding which products and services fall under which slab is crucial for accurate compliance and invoicing.
GST Tax Slabs Overview
| Tax Slab | Category | Examples |
|---|---|---|
| 0% (Nil) | Exempted | Fresh vegetables, milk, bread, education, healthcare |
| 5% | Essential items | Edible oil, tea, coffee, spices, packaged food |
| 12% | Standard goods | Processed food, butter, ghee |
| 18% | Most goods/services | Electronics, IT services, restaurants, soap |
| 28% | Luxury/sin goods | Cars, AC, cigarettes, aerated drinks + cess |
💡 Key Principle
Essential items → Lower tax. Luxury items → Higher tax. This ensures GST is progressive and affordable for common people.
0% GST (Exempted Items)
Zero-rated / Exempted (No GST)
Food Items:
- Fresh vegetables, fruits, meat, fish
- Milk, curd, lassi (not packaged)
- Fresh bread (not branded)
- Cereals, rice, wheat, flour
- Salt, jaggery
Services:
- Education (schools, colleges)
- Healthcare (hospitals, clinics)
- Agricultural services
- Public transport (railways, metro, buses)
5% GST Rate
Essential & Basic Items (5%)
Food & Groceries:
- Edible oil (mustard, sunflower, palm)
- Tea, coffee
- Sugar, spices
- Packaged food items (below ₹1,000/kg)
- Milk (packed), paneer, cream
Other Items:
- Coal, natural gas
- Medicines, drugs
- Life-saving drugs
- Footwear (up to ₹500)
- Apparel (up to ₹1,000)
12% GST Rate
Standard Goods & Services (12%)
Goods:
- Processed food items
- Butter, ghee, cheese
- Dry fruits in packaged form
- Apparel (above ₹1,000)
- Ayurvedic medicines
- Bicycles
Services:
- Non-AC restaurants
- Business class air travel
- Work contracts
18% GST Rate
Most Common Rate (18%)
Goods:
- FMCG products (soap, toothpaste, shampoo)
- Electronics (TV, refrigerator, washing machine)
- Computers, laptops, desktops (HSN 8471)
- Printers and scanners (HSN 8443)
- Mobile phones (HSN 8517)
- Furniture, fixtures
- Footwear (above ₹500)
- Stationery items
- Industrial intermediaries
Services:
- IT services, software
- Telecom services
- AC restaurants
- Financial services
- Professional services
- Hotel rooms (₹1,000-₹7,500)
28% GST Rate
Luxury & Sin Goods (28%)
Luxury Items:
- Motor vehicles (cars, bikes)
- Air conditioners
- Refrigerators (large)
- Dishwashers
- Hotel rooms (>₹7,500)
- High-end consumer durables
Sin Goods (28% + Cess):
- Cigarettes, tobacco products (+ cess)
- Aerated drinks, soft drinks (+ 12% cess)
- Pan masala (+ cess)
Calculate GST on Your Products
Use our free GST Calculator to compute tax at any rate instantly.
Calculate Now →GST Cess
Cess is an additional tax levied on top of GST for luxury and sin goods:
| Item | GST Rate | Cess | Total Tax |
|---|---|---|---|
| Small petrol cars (<1200cc) | 28% | 1% | 29% |
| Mid-size cars (1200-1500cc) | 28% | 15% | 43% |
| Large cars/SUVs (>1500cc) | 28% | 20% | 48% |
| Aerated drinks | 28% | 12% | 40% |
| Cigarettes | 28% | Up to 290% | Varies |
Service-Specific GST Rates
| Service | GST Rate |
|---|---|
| Restaurants (non-AC) | 5% (no ITC) |
| Restaurants (AC / licensed) | 18% |
| Hotels (<₹1,000/night) | Nil |
| Hotels (₹1,000-₹2,500) | 12% |
| Hotels (₹2,500-₹7,500) | 18% |
| Hotels (>₹7,500) | 28% |
| Movie tickets (<₹100) | 18% |
| Movie tickets (>₹100) | 28% |
| Telecom services | 18% |
| Banking / Insurance | 18% |
How to Find GST Rate for Your Product?
- Identify HSN Code: Every product has a Harmonized System of Nomenclature code
- Check GST rate: Each HSN code has a specific GST rate
- Use HSN Finder: Search on GST portal or use our tool
💡 HSN Code Matters
Similar products can have different GST rates based on HSN classification. Always verify the correct HSN code! Use our HSN Finder Tool for accurate rates.
Recent Changes in GST Rates (2024-2026)
- Online gaming, casinos, horse racing: 28% (full value)
- Notebooks, exercise books: 12%
- Unbranded pre-packaged food: 5%
- Electric vehicles: 5% (from 12%)
Inverted Duty Structure
When input tax rate > output tax rate, it creates inverted duty:
Example
Purchase raw material @ 18% GST
Sell finished product @ 12% GST
Result: ITC accumulates (can claim refund)
Frequently Asked Questions
Can GST rates change during the year?
Yes. GST Council meets periodically and can change rates. Changes are notified and effective from specified dates.
What if my product fits multiple categories?
Use the most specific HSN code. If still unclear, consult the GST portal's classification or a tax expert.
Are GST rates uniform across India?
Yes. GST rates are the same in all states (CGST + SGST = IGST).
Where can I check the latest GST rates?
Official GST portal (gst.gov.in) has the latest rate schedule. Our HSN Finder tool also has updated rates.