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.
What are GST Rates?
Every business registered under GST must raise invoices with GST amounts charged on the supply value. These GST amounts are derived as a percentage value of taxable amounts. Such as percentage rate used is called the GST rate. For instance, GST of Rs.1,200 charged on taxable value of Rs.10,000 is arrived by multiplying 12% GST rate with Rs.10,000.
Therefore, GST rate is a percentage rate of tax imposed on the sale of goods or services under the CGST, SGST and IGST Acts.
CGST GST rate and SGST GST rate would both be half of IGST GST rate. In other words, the GST rates in CGST and SGST (For intrastate transactions) are approximately the same. Whereas, the GST rate in the case of IGST (For interstate transactions) is approximately the sum total of CGST and SGST rate.
Types of GST Rates and GST Rate structure in India
The primary GST slabs for any regular taxpayers are presently pegged at 0% (nil-rated), 5%, 12%, 18% & 28%. There are a few lesser-used GST rates such as 3% and 0.25%.
Also, the composition taxable persons must pay GST at lower or nominal rates such as 1.5% or 5% or 6% on their turnover. There is a concept of TDS and TCS under GST as well, whose rates are 2% and 0.5% respectively (prior to 9th July 2024, it was 1%).
Further, the GST law levies cess in addition to the above GST rates on the sale of some items such as cigarettes, tobacco, aerated water, petrol, and motor vehicles, rates widely varying from 1% to 204%.
GST Rates in 2025
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 |
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 |
FAQs
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% |
What is the GST rate applicable on mobile?
Currently, the GST rate on mobile phones is 18% under HSN Chapter 3 with HSN code 85171219.
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