GST Rates

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 Interim Budget 2024-25, no changes have been made to GST Rates.

The GST Rates in 2024

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%

Decrease in the GST Rates

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

Kinds of GST Rates and Structures in India

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%

HSN and SAC System

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%.

You May Also Be Interested to Know
Tax on Mutual Funds Documents Required To File Income Tax Returns
How to Save Tax in India Top Reasons Why You Can Get An Income Tax Notice
Basics of Income Tax for Beginners How to Avoid LTCG Tax?
  • HSN System

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.

  • SAC System

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.

Save up to Rs.46,800 on taxes
Check out the top tax-saving funds with the highest returns in the past 3 years
EXPLORE NOW
Loading...
ⓒ 2016-2024 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 4.8.6
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  GROWWMF |  SBI |  AXIS |  HDFC |  UTI |  NIPPON INDIA |  ICICI PRUDENTIAL |  TATA |  KOTAK |  DSP |  CANARA ROBECO |  SUNDARAM |  MIRAE ASSET |  IDFC |  FRANKLIN TEMPLETON |  PPFAS |  MOTILAL OSWAL |  INVESCO |  EDELWEISS |  ADITYA BIRLA SUN LIFE |  LIC |  HSBC |  NAVI |  QUANTUM |  UNION |  ITI |  MAHINDRA MANULIFE |  360 ONE |  BOI |  TAURUS |  JM FINANCIAL |  PGIM |  SHRIRAM |  BARODA BNP PARIBAS |  QUANT |  WHITEOAK CAPITAL |  TRUST |  SAMCO |  NJ