Quick Answer
After the GST 2.0 reform effective 22 September 2025, India runs a simplified two-slab structure — 5% and 18% — plus a special 40% rate on sin and luxury goods and 0% for essentials. The old 12% and 28% slabs were removed: almost all 12% items dropped to 5% and most 28% items fell to 18%. Gold stays at 3%.
Essentials 0%
Merit 5%
Standard 18%
Sin / luxury 40%
GST 2.0 structure
The New GST Slabs After 22 September 2025
The GST Council (3 September 2025) collapsed four slabs into two. Rate changes were notified through Notifications 09-15/2025-CT(R) and took effect from 22 September 2025. Here is what each slab now covers.
| Slab | What it covers now | Examples |
|---|---|---|
| 0% | Essentials, exempt supplies | Unbranded food, milk, health & life insurance, education, healthcare |
| 5% | Merit goods & mass-use items | Packaged food, medicines, small cars, footwear, apparel, budget hotels |
| 18% | Standard rate — most goods & services | Electronics, cement, appliances, professional & IT services |
| 40% | Sin & luxury (demerit) | Aerated drinks, tobacco, pan masala, large cars, high-end bikes |
Special rates outside the slabs: gold & silver 3%, rough diamonds 0.25%. Petrol, diesel & alcohol remain outside GST.
What actually moved
Roughly 99% of items in the old 12% slab dropped to 5%, and about 90% of the old 28% slab moved to 18% — the remaining ~10% (sin & luxury) went to the new 40% demerit rate. Confirm any specific HSN on the official portal before invoicing.
Item-wise chart
GST Rate Chart — Food & Beverages
| Item | HSN | GST Rate | Notes |
|---|---|---|---|
| Unbranded cereals, pulses, flour | 1006 / 0713 | 0% | Pre-packaged & labelled: 5% |
| Fresh vegetables, fruits, milk, eggs | 07 / 08 / 0401 | 0% | Unprocessed |
| Packaged / processed food | 2106 | 5% | Reduced from 12% under GST 2.0 |
| Biscuits, namkeen, snacks | 1905 / 2106 | 5% | Reduced from 12-18% |
| Chocolate & cocoa products | 1806 | 5% | Reduced from 18% |
| Butter, ghee, cheese, dry fruits | 0405 / 0406 | 5% | — |
| Restaurant service (standalone) | 9963 | 5% | No ITC · see restaurant guide |
| Aerated / sugary drinks | 2202 | 40% | Sin goods · demerit rate |
Rates reflect GST 2.0 (eff 22 Sep 2025). SAC 9963 for restaurant supplies.
Selling food or running a restaurant? Get your GST classification checked.
Talk to a GST Expert →Item-wise chart
GST Rate Chart — Electronics, Appliances & Vehicles
The biggest winners under GST 2.0: TVs, air conditioners, refrigerators, washing machines and cement all dropped from 28% to 18%, and small cars fell from 28% to 18%.
| Item | HSN | GST Rate | Notes |
|---|---|---|---|
| Mobile phones, laptops | 8517 / 8471 | 18% | — |
| TVs (all sizes), fridges, washing machines | 8528 / 8418 / 8450 | 18% | Reduced from 28% under GST 2.0 |
| Air conditioners | 8415 | 18% | Reduced from 28% |
| Cement | 2523 | 18% | Reduced from 28% |
| Small cars (petrol <1200cc / diesel <1500cc, <4m) | 8703 | 18% | Reduced from 28% + cess |
| Two-wheelers up to 350cc | 8711 | 18% | Reduced from 28% |
| Electric vehicles | 8703 / 8711 | 5% | Concessional · to promote EVs |
| Large cars, SUVs, bikes > 350cc | 8703 / 8711 | 40% | Luxury · demerit rate |
| Gold & silver (jewellery / bullion) | 7108 / 7113 | 3% | Special rate outside slabs |
| Tobacco, cigarettes, pan masala | 2402 / 2403 | 40% | Sin goods · 40% w.e.f. 1 Feb 2026 |
Petrol, diesel and alcohol for human consumption remain outside GST (state excise / VAT applies).
Item-wise chart
GST Rate Chart — Healthcare, Insurance & Services
A landmark GST 2.0 change: individual life and health insurance is now fully exempt, and 36 lifesaving drugs moved to nil.
| Item / Service | SAC/HSN | GST Rate | Notes |
|---|---|---|---|
| Life & health insurance (individual) | 9971 | 0% | Exempt under GST 2.0 |
| 36 notified lifesaving drugs | 3004 | 0% | Moved to nil under GST 2.0 |
| Medicines (most formulations) | 3004 | 5% | Reduced from 12% |
| Healthcare & education services | 9993 / 9992 | 0% | Exempt |
| Hotel room up to ₹7,500/night | 9963 | 5% | No ITC · reduced from 12% |
| Hotel room above ₹7,500/night | 9963 | 18% | With ITC |
| Professional (CA/legal), IT, telecom | 9982 / 9983 / 9984 | 18% | Standard rate |
| Banking & financial services | 9971 | 18% | Fees, charges, commissions |
Hotel accommodation ≤ ₹7,500 is taxed at 5% without ITC (proportionate reversal under Sec 17). SAC codes always begin with 99.
Practical
How to Find the Correct GST Rate
- Identify the HSN (goods) or SAC (services) code
- Check the CBIC Rate Finder at cbic-gst.gov.in
- Match against the post-22-Sep-2025 rate notifications
- Confirm any special / conditional rate (e.g. hotel tariff, MRP)
- Seek an Advance Ruling for genuinely ambiguous items
Watch the effective date on old charts
Any rate chart dated before 22 September 2025 still shows the old 12% and 28% slabs and is now outdated. Always cross-check the current rate on the official portal, as HSN-level exceptions exist within every slab.
Not sure which rate or HSN applies to your product? Get it verified.
Ask a GST Expert →Government sourcesRates & notifications: gst.gov.in · CBIC rate finder: cbic-gst.gov.in · GST 2.0 rate changes: Notifications 09-15/2025-CT(R), dated 17 Sep 2025 (eff. 22 Sep 2025) · 56th GST Council meeting recommendations, 3 September 2025
People also ask
Frequently Asked Questions
Slabs & Structure
What are the GST slabs in 2025-26?
After GST 2.0 (effective 22 September 2025), India has a simplified two-slab structure of 5% and 18%, plus a 0% rate for essentials and exempt supplies and a special 40% rate for sin and luxury goods. The earlier 12% and 28% slabs were removed. Gold and silver are taxed at a special 3% and rough diamonds at 0.25%.
When did the new GST rates come into effect?
The GST 2.0 rate rationalisation was recommended at the 56th GST Council meeting on 3 September 2025 and notified through Notifications 09-15/2025-Central Tax (Rate) dated 17 September 2025. The new rates took effect from 22 September 2025. Any rate chart dated earlier still reflects the old four-slab structure.
Were the 12% and 28% GST slabs removed?
Yes. Under GST 2.0 the 12% and 28% slabs were abolished. Around 99% of items in the old 12% slab moved down to 5%, and roughly 90% of the old 28% slab moved to 18%. The remaining sin and luxury items from the 28% slab moved up to the new 40% demerit rate.
What is the 40% GST rate for?
The 40% rate is a special demerit rate on sin and luxury goods — aerated and sugary drinks, tobacco, cigarettes, pan masala, gutka, large/luxury cars, SUVs and high-capacity motorcycles above 350cc. It replaced the earlier 28% + compensation cess treatment for most of these items.
What is the highest GST rate in India now?
The highest GST rate is 40%, applied to sin and luxury goods. For most goods and services the top rate is 18%. Note that certain items like gold (3%) and rough diamonds (0.25%) sit outside the main slabs, and petrol, diesel and alcohol remain outside GST entirely.
Food & Everyday Items
What is the GST rate on packaged food and biscuits?
Under GST 2.0, packaged and processed food, biscuits, namkeen and snacks are taxed at 5% (reduced from 12-18%), and chocolate at 5% (reduced from 18%). Unbranded staple food — cereals, pulses, fresh vegetables, milk and eggs — remains at 0%. Pre-packaged and labelled staples attract 5%.
What is the GST rate on clothes and footwear?
Readymade apparel and footwear largely fall in the 5% slab for mass-use items under GST 2.0, with premium/branded items in specific categories at 18%. Because MRP-based thresholds and HSN-level rules apply, confirm the exact rate for your product on the CBIC rate finder before invoicing.
Is GST on aerated and cold drinks really 40%?
Yes. Aerated, carbonated and sugary drinks are classified as demerit goods and taxed at 40% under GST 2.0 — one of the few categories where the rate went up rather than down. This replaced the earlier 28% + compensation cess treatment.
Electronics & Vehicles
What is the GST rate on TVs, ACs and refrigerators now?
Televisions of all sizes, air conditioners, refrigerators and washing machines are now taxed at 18%, reduced from 28% under GST 2.0. This was one of the headline consumer benefits of the reform, lowering the price of most white goods.
What is the GST rate on cars in 2025-26?
Small cars (petrol under 1200cc or diesel under 1500cc and under 4 metres) are now taxed at 18%, down from 28% + cess. Large cars, SUVs and motorcycles above 350cc attract the 40% demerit rate. Electric vehicles remain at a concessional 5%.
What is the GST rate on cement?
Cement is now taxed at 18%, reduced from 28% under GST 2.0. This is a significant relief for the construction and housing sector. Steel (TMT bars) is also at 18%.
What is the GST rate on gold and mobile phones?
Gold and silver (jewellery and bullion) retain the special 3% rate outside the main slabs; making charges are separately taxed. Mobile phones and laptops remain at 18%. These rates were not changed by GST 2.0.
Services & Insurance
Is life and health insurance exempt from GST now?
Yes. Individual life insurance and health insurance premiums are fully exempt from GST under GST 2.0, effective 22 September 2025 — one of the reform's most significant relief measures for households. Earlier these attracted 18% GST.
What is the GST rate on hotel rooms in 2025-26?
Hotel rooms with a tariff up to ₹7,500 per night are taxed at 5% without ITC (reduced from 12%), while rooms above ₹7,500 per night are taxed at 18% with ITC. Hotels offering both categories must apportion input tax credit under Section 17 and Rules 42-43.
What is the GST rate on professional and IT services?
Most services — professional services (CA, legal, consultancy), IT and software, telecom, and banking/financial services — are taxed at the standard 18% rate. Healthcare and education services remain exempt (0%). SAC codes for services always begin with 99.
Practical
How do I find the correct GST rate for my product?
Identify the HSN code (goods) or SAC code (services), then check the CBIC Rate Finder at cbic-gst.gov.in against the post-22-September-2025 notifications. Confirm any conditional rate (such as hotel tariff or MRP threshold). For genuinely ambiguous items, seek an Advance Ruling from your state's Authority for Advance Rulings.
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