GST Rates in India: 0%, 5%, 18% and 40% Slabs Explained
India simplified its GST structure with effect from 22 September 2025. The old 12% and 28% slabs were removed for most items, and the main rates became 5% and 18%, with a special higher rate of 40% for a limited list of luxury and "sin" goods. Some items remain at 0% (nil), and a few special rates continue, such as 3% on gold, silver and jewellery.
The slabs at a glance
| Rate | Typically applies to (examples) |
|---|---|
| 0% | Fresh fruits and vegetables, milk, eggs, unpackaged grains, some stationery, certain insurance |
| 5% | Everyday items such as ghee, butter, packaged snacks, hair oil, toothpaste, and several essentials |
| 18% | Most goods and services: electronics, air conditioners, many professional and business services, courier services, small cars |
| 40% | Aerated drinks, large cars and motorcycles above 350cc, yachts, gambling-related supplies |
| 3% | Gold, silver and jewellery |
These are examples only. The exact rate for your item depends on its HSN or SAC code and any exemption notifications.
What this means for your quotation or invoice
- If you charged 12% or 28% earlier, check the new rate for each item. Many items moved to 5% or 18%, so older templates can be wrong.
- In our quotation generator and invoice generator you can edit the GST % on every line, so choose the correct rate yourself.
- When you change a rate, re-check your margin. Use the profit margin calculator.
How to find the right rate for your product
- Find the HSN code (goods) or SAC code (services). See HSN and SAC codes explained.
- Check the rate on the official CBIC or GST portal rate schedules, or ask your CA.
- Enter the rate in your invoice and use the GST calculator to verify totals.
FAQs
Are the 12% and 28% slabs completely gone?
They were removed as standard slabs for most goods and services. A few special cases and transition rules may apply, so verify your item.
Do rates differ for services?
Yes. Many professional, business and IT services are at 18%, but some services are at 5% or exempt. Check the SAC code.
Rates are updated by the GST Council from time to time. This article is informational and not tax advice. Always confirm the current rate before invoicing.