The GST Council determines the GST rate slabs. The GST Council reviews the rate slabs for goods and services on a regular basis. GST rates are typically high for luxury items and low for necessities. GST rates in India for various goods and services are divided into four slabs: 5% GST, 12% GST, 18% GST, and 28% GST.
Since the inception of the Goods and Services Tax, the GST council has revised the GST rates for various products several times (GST). The most recent rate revision went into effect at the 41st GST Council Meeting on August 27, 2020. Previously, there had been numerous GST Council Meetings at which certain rate revisions were introduced.
As per the Union Budget 2024-25, no changes have been made to GST Rates.
The following are some of the changes that were made-
|
Category |
Old GST Rates |
New GST Rates |
|
Railways Goods and Parts under Chapter 86 |
12% |
18% |
|
Pens |
12% |
18% |
|
Metal Concentrates and Ores |
5% |
18% |
|
Certain Renewable Energy Devices |
5% |
12% |
|
Recorded media reproduction and print |
12% |
18% |
|
Broadcasting, sound recordings, and licensing |
12% |
18% |
|
Printed material |
12% |
18% |
|
Packing containers and boxes |
12% |
18% |
|
Scrap and polyurethanes |
5% |
18% |
As per the recently held GST Council on 22 June 2024, the following GST rates were announced-
| Items | Old Rate | New Rate |
| A uniform rate for all types of milk cans | – | 12% |
| A uniform IGST rate applies to imports of aircraft tool kits | – | 5% |
| Carton boxes and cases | 18% | 12% |
| All types of solar cookers | 5% | 12% |
| A uniform rate for all types of sprinklers | – | 12% |
| Indian Railways – Platform tickets | – | Exempt |
| Indian Railways – Facility of retiring rooms/waiting rooms | – | Exempt |
| Indian Railways – Cloak room services | – | Exempt |
| Indian Railways – Battery Operated car services | – | Exempt |
| Hostel accommodation service under certain conditions | – | Exempt |
|
Category |
Old GST Rates |
New GST Rate |
|
If vehicles are equipped with retrofitting kits for disabled people, |
Applicability |
5% |
|
Keytruda for cancer |
12% |
5% |
|
IGST is levied on goods sold at the Indo-Bangladesh border |
Applicability |
NIL |
The primary GST slabs for regular taxpayers are currently 0% (nil-rated), 5%, 12%, 18%, and 28%. There are a few GST rates that are less commonly used, such as 3% and 0.25%.
Furthermore, the taxable composition persons are required to pay General Service Tax at lower or nominal rates such as 1.5%, 5%, or 6% on their turnover. TDS and TCS are also concepts under GST, with rates of 2% and 1%, respectively.
These are the total IGST rates for interstate supplies or the sum of CGST and SGST for intrastate supplies. To calculate the GST amounts on a tax invoice, multiply the GST rates by the assessable value of the supply.
Furthermore, in addition to the above GST rates, the GST law imposes a cess on the sale of certain items such as cigarettes, tobacco, aerated water, gasoline, and motor vehicles, with rates ranging from 1% to 204%.
|
Products |
Tax Rates |
|
Milk |
0% |
|
Eggs |
0% |
|
Curd |
0% |
|
Lassi |
0% |
|
Kajal |
0% |
|
Educations Services |
0% |
|
Health Services |
0% |
|
Children's Drawing & Coloring Books |
0% |
|
Unpacked Foodgrains |
0% |
|
Unpacked Paneer |
0% |
|
Gur |
0% |
|
Unbranded Natural Honey |
0% |
|
Fresh Vegetables |
0% |
|
Salt |
0% |
|
Unbranded Atta |
0% |
|
Unbranded Maida |
0% |
|
Besan |
0% |
|
Prasad |
0% |
|
Palmyra Jaggery |
0% |
|
Phool Bhari Jhadoo |
0% |
|
Products |
Tax Rates |
|
Sugar |
5% |
|
Tea |
5% |
|
Packed Paneer |
5% |
|
Coal |
5% |
|
Edible Oils |
5% |
|
Raisin |
5% |
|
Domestic LPG |
5% |
|
Roasted Coffee Beans |
5% |
|
PDS Kerosene |
5% |
|
Skimmed Milk Powder |
5% |
|
Cashew Nuts |
5% |
|
Footwear (< Rs.500) |
5% |
|
Milk Food for Babies |
5% |
|
Apparels (< Rs.1000) |
5% |
|
Fabric |
5% |
|
Coir Mats, Matting & Floor Covering |
5% |
|
Spices |
5% |
|
Agarbatti |
5% |
|
Coal |
5% |
|
Mishti/Mithai (Indian Sweets) |
5% |
|
Life-saving drugs |
5% |
|
Coffee (except instant) |
5% |
|
Products |
Tax Rates |
|
Butter |
12% |
|
Ghee |
12% |
|
Computers |
12% |
|
Processed food |
12% |
|
Almonds |
12% |
|
Mobiles |
12% |
|
Fruit Juice |
12% |
|
Preparations of Vegetables, Nuts Fruits, or other parts |
12% |
|
Packed Coconut Water |
12% |
|
Umbrella |
12% |
|
Products |
Tax Rates |
|
Hair Oil |
18% |
|
Capital goods |
18% |
|
Toothpaste |
18% |
|
Industrial Intermediaries |
18% |
|
Soap |
18% |
|
Ice-cream |
18% |
|
Pasta |
18% |
|
Toiletries |
18% |
|
Corn Flakes |
18% |
|
Soups |
18% |
|
Computers |
18% |
|
Printers |
18% |
|
Products |
Tax Rates |
|
Small cars (+1% or 3% cess) |
28% |
|
High-end motorcycles (+15% cess) |
28% |
|
Consumer durables such as AC and fridge |
28% |
|
Beedis are NOT included here |
28% |
|
Luxury & sin items like BMWs, cigarettes |
28% |
|
and aerated drinks (+15% cess) |
28% |
All of the goods and services transacted in the country are classified under the HSN code system or the SAC code system under GST. Goods are classified using the HSN Code, while services are classified using the SAC Code.
GST rates have been set in five slabs based on the HSN or SAC code, namely NIL, 5%, 12%, 18%, and 28%.
The World Customs Organization developed the HSN code, or Harmonized System Nomenclature code number, as an internationally accepted commodity description and coding system. More than 200 countries use the HSN code as the basis for their customs tariffs.
Currently, over 98% of international trade merchandise is classified using the HSN code. With the HSN code serving as a universal classification for goods, the Government has decided to use the HSN code for GST classification and levy.
The current version used in international trade transactions is the HSN Code 2017 Edition. Prior to the implementation of the HSN Code-2017 Edition, all international trade transactions used the HSN Code-2012 Edition. The HSN Codes are divided into sections and chapters, and each chapter contains the Harmonized System's six-digit codes.
The Service Tax Department of India developed the SAC Code, or Services Accounting Code, as a classification system for services. The General Service Tax rates for services are fixed in 5 slabs using the SAC code, namely 0%, 5%, 12%, 18%, and 28%. If a service is not GST exempt or the GST rates are not provided, the default GST rate for services of 18% will apply.