After the GST 2.0 reform (effective 22 September 2025), India moved to a two-slab structure — 5% and 18% — plus 0% for essentials and a 40% demerit rate for luxury and sin goods. The old 12% and 28% slabs were removed. Goods are classified by HSN code and services by SAC code; look the code up on the official GST portal, then read its rate from the chart below.
How to Find the GST Rate for Any Item
Whether it is a product or a service, the same route gives you the notified rate. Use the free HSN/SAC search on gst.gov.in, then confirm against the CBIC rate notifications.
Unless a service is specifically covered by a lower-rate entry (like the 5% restaurant rate), the default GST rate for services is 18%. When in doubt on a B2B service, 18% is the safe assumption — then check for a concessional entry.
GST Rate Chart — 30 Common Goods & Services
Indicative rates after the GST 2.0 rationalisation. Always confirm the exact rate for your HSN/SAC on the official portal before invoicing.
| Item / Category | HSN / SAC | GST Rate | Notes |
|---|---|---|---|
| Fresh vegetables (unprocessed) | 0702–0714 | 0% | Potatoes, tomatoes, onions, etc. |
| Rice / wheat flour (pre-packaged) | 1006 / 1101 | 5% | Loose, unbranded grains: 0% |
| Milk (fresh, not concentrated) | 0401 | 0% | UHT milk also nil |
| Sugar / edible oils | 1701 / 1507–1516 | 5% | Mass-use food items |
| Packaged snacks / namkeen | 2106 | 5% | Cut from 12% under GST 2.0 |
| Readymade garments & footwear | 61–64 | 5% | Concessional merit rate |
| Mobile phones / laptops | 8517 / 8471 | 18% | Consumer electronics |
| TVs & air conditioners | 8528 / 8415 | 18% | Cut from 28% under GST 2.0 |
| Cement | 2523 | 18% | Cut from 28% under GST 2.0 |
| Steel (TMT / flat-rolled) | 7208–7229 | 18% | Construction inputs |
| Small cars (petrol <1200cc) | 8703 | 18% | Cut from 28% + cess |
| Large cars / SUVs | 8703 | 40% | Demerit slab; cess subsumed |
| Electric vehicles (EVs) | 8703 | 5% | Concessional; no cess |
| Health & life insurance premium | SAC 9971 | 0% | Individual policies now nil |
| Life-saving medicines (notified) | 3003–3004 | 0% | 33 drugs nil; others 5% |
| Restaurant services (standalone) | SAC 9963 | 5% | No ITC; specified premises 18% |
| Hotel room ≤ ₹7,500 / night | SAC 9963 | 5% | Above ₹7,500: 18% |
| IT / software & banking services | SAC 9983 / 9971 | 18% | Standard service rate |
| Cigarettes / pan masala / tobacco | 24 | 40% | Demerit slab (sin goods) |
| Aerated / sugary drinks | 2202 | 40% | Demerit slab |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 (12% and 28% slabs removed; 40% demerit band added). SAC/HSN shown is indicative — verify your exact code on gst.gov.in.
Goods & Services Outside GST
A few items remain outside the GST net and are taxed under other laws — GST is not charged on them and no ITC is available.
| Item | Tax Regime | Notes |
|---|---|---|
| Petrol & diesel | State VAT + Central Excise | Not yet brought under GST |
| Alcohol for human consumption | State Excise Duty | Excluded from GST entirely |
| Electricity | State Electricity Duty | Outside GST |
| Stamp duty on property | State Stamp Duty | Property purchase outside GST |
| Natural gas / crude oil | Central Excise + State VAT | Petroleum sector not yet integrated |
Demerit Rate — Luxury & Sin Goods
GST 2.0 replaced the old 28% + compensation-cess structure on most luxury and sin goods with a single 40% demerit slab. This keeps the high effective tax on such goods while simplifying the earlier base-rate-plus-cess calculation.
- Sin goods — cigarettes, tobacco products, pan masala, gutkha.
- Luxury / demerit goods — large cars & SUVs, high-end motorcycles, aerated and sugary drinks.
- The old 12% and 28% slabs no longer exist; those items moved down to 5% / 18% or up to 40%.
Invoices dated on or after 22 September 2025 must use the new GST 2.0 rates. Applying an old 12% or 28% rate after that date is an error — reconcile your rate masters and item HSN mappings before filing GSTR-1.
Same Rate, Different Tax Heads
The total GST rate is identical whether the supply is intra-state or inter-state — only the split changes. An 18% intra-state supply is 9% CGST + 9% SGST; the same supply inter-state is 18% IGST. UTGST replaces SGST in Union Territories.
If the correct rate for your product or service is genuinely uncertain, you can apply for a binding Advance Ruling (AAR) under Section 97 of the CGST Act. CBIC also issues clarificatory circulars, and paying at the higher rate then claiming a refund is a fallback while the position is settled.
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