GST Rates 2026: the full slab list (0, 5, 18, 40%)

India's GST is a single tax with a few rate 'slabs' — essentials are taxed lightly (or not at all) while luxuries are taxed heavily. The big change: the GST 2.0 reform, effective 22 September 2025, scrapped the old five-slab system and the 12% and 28% bands, leaving a much simpler structure. This guide maps out the current slabs and what falls in each.

The main GST slabs (GST 2.0)

Since 22 September 2025, almost everything falls into one of two taxable bands — 5% or 18% — with a single high rate for luxury and 'sin' goods. Here's the framework and typical items in each:

• 0% (nil / exempt) — unbranded fresh essentials (fruit, vegetables, milk, eggs, unpackaged grains, fresh meat), most healthcare, all education services, many lifesaving drugs, and individual life and health insurance premiums.
• 5% — mass-consumption and daily-use items: packaged food staples, edible oils, medicines, most household goods, agricultural equipment and small-restaurant services. Many things that used to be 12% or 18% were cut to 5%.
• 18% — the standard band where most goods and services sit: electronics, appliances (TVs and ACs came down from 28% to 18%), most cars (down from 28%), soaps and toiletries, telecom and professional services, and capital goods.
• 40% — luxury and 'sin' goods only: tobacco and pan masala, aerated/sugary drinks, and high-end luxury items such as premium cars. This single rate replaced the old 28% + cess system for most such goods.

Two special rates sit outside the main bands: gold and jewellery are taxed at 3%, and rough diamonds at 0.25%.

What changed under GST 2.0

The reform removed the 12% and 28% slabs entirely. Most 12% items moved down to 5%, most 28% items moved down to 18%, and only luxury/sin goods were pushed to the new 40% rate. The result is lower tax on a wide range of everyday goods, appliances and vehicles, and a simpler two-rate core.

CGST, SGST and IGST — the split

Whatever the slab, the tax is collected in one of two ways depending on whether the sale crosses a state border:

• Within the same state (intra-state): the GST is split equally into CGST (central) and SGST (state). So 18% GST = 9% CGST + 9% SGST.
• Between states (inter-state): the whole amount is charged as IGST (integrated GST), which the centre later shares with the destination state. So 18% GST = 18% IGST.

For you as a buyer the total is identical — the split only matters for how governments divide the revenue and how businesses claim input credit.

An important caveat on rates

GST rates are set by the GST Council and revised periodically — items can still move between slabs over time. Always confirm the current notified rate (and HSN code) for a specific product before you invoice it, rather than relying on a general guide.

Work out the GST on any amount

Add GST to a base price, or extract the GST already inside a total — at any slab:

Raising an invoice? Validate the buyer's GST number first: