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GST Tax Rate List India 2026 — Overview of Slabs

Published on April 25, 2026 • 9 min read
In short: The Indian Goods and Services Tax (GST) system features four primary tax slabs: 5%, 12%, 18%, and 28%, along with a 0% (exempt) category for essential items. The standard rate for most professional services and software is 18%. Applying the correct rate on your tax invoice is mandatory for compliance.

Understanding GST Slabs in India

India's GST council adopted a multi-tiered tax structure to balance revenue generation with inflation control and social equity. Essential goods are taxed at lower rates or exempted entirely, while luxury items and "demerit" goods attract the highest rates. When generating a tax invoice, you must identify the correct GST percentage based on the HSN (goods) or SAC (services) code of your offering.

The 5 Primary GST Categories

1. Exempt / Nil Rate (0%)

This category includes essential daily consumption items and basic services to protect lower-income groups.

  • Goods: Unpacked food grains, fresh fruits and vegetables, unbranded milk, eggs, salt, bread, books, newspapers, jute.
  • Services: Specified educational services, basic healthcare services, public libraries, certain agricultural services.

2. 5% Slab

Covers items of mass consumption that require processing.

  • Goods: Packaged food items (branded), tea, coffee (except instant), edible oils, sugar, spices, life-saving drugs, footwear (below ₹1,000), apparel (below ₹1,000).
  • Services: Transport of goods by rail/vessel, standalone restaurants, economy class air travel, tour operator services.

3. 12% Slab

Standard rate for widely used goods and services.

  • Goods: Butter, cheese, ghee, fruit juices, packaged drinking water, apparel (above ₹1,000), umbrellas, cell phones, sewing machines.
  • Services: Business class air travel, state-run lotteries, non-AC restaurants.

4. 18% Slab (Standard Rate)

This is the default rate for most manufactured goods and the vast majority of services.

  • Goods: Hair oil, soap, toothpaste, capital goods, industrial intermediaries, footwear (above ₹1,000), computers, monitors.
  • Services: IT services, freelance consulting, telecom services, financial services, branded garments, AC restaurants in five-star hotels, outdoor catering.

5. 28% Slab

Applies to luxury items and goods discouraged by the government.

  • Goods: Automobiles, motorcycles, aerated drinks, air conditioners, refrigerators, tobacco products, pan masala, cement.
  • Services: Five-star hotel stays (above certain tariffs), racing club services, gambling, entertainment events.

Note: Certain items in the 28% slab also attract a Compensation Cess over and above the GST rate.

Special GST Rates

Besides the primary slabs, there are a few special rates for specific sectors:

  • 3% Rate: Gold, silver, platinum, and other precious metals, imitation jewellery.
  • 0.25% Rate: Rough industrial diamonds, unworked precious and semi-precious stones.
  • Composition Scheme Rates: 1% for traders and manufacturers, 5% for restaurants (without ITC), and 6% for service providers (up to ₹50 lakh turnover).

How to Apply the Correct Rate on Your Invoice

When invoicing a client, you must clearly state the GST rate and calculate the amounts accurately. If it is an intra-state supply (supplier and buyer in the same state), the GST rate is split equally into CGST (Central GST) and SGST (State GST). If it is an inter-state supply, the full rate is applied as IGST (Integrated GST).

For example, for a ₹10,000 IT consulting service (18% GST):
- Intra-state: CGST ₹900 (9%) + SGST ₹900 (9%) = ₹1,800
- Inter-state: IGST ₹1,800 (18%)

Auto-calculate CGST, SGST, and IGST effortlessly

Frequently Asked Questions

What are the current GST slabs in India?

India follows a multi-tiered GST structure with four primary tax slabs: 5%, 12%, 18%, and 28%. There is also a 0% (exempt) category for essential items, and special rates like 3% for gold and 0.25% for rough precious stones.

Which GST rate applies to most services?

The standard GST rate for most services, including IT services, consulting, professional fees, and freelance work, is 18%. However, some services like certain transport and restaurant services may fall under the 5% slab.

What items fall under the 28% GST slab?

The 28% slab generally applies to luxury items and 'sin' goods. This includes automobiles, aerated drinks, tobacco products, pan masala, and certain high-end consumer durables.

How do I find the exact GST rate for my product?

To find the exact GST rate, you need to identify the HSN (Harmonized System of Nomenclature) code for your product or the SAC (Services Accounting Code) for your service, and then check the official CBIC rate notifications for that specific code.

Related Guides

What is an HSN Code? How to Make a GST Compliant Invoice GST Invoice Format Download
⚖️ Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, financial, or professional advice. While we strive to keep the information accurate and up-to-date, BillBanao makes no guarantees about the completeness, accuracy, or reliability of the content. GST rates are subject to frequent changes by the GST Council and CBIC. Always verify the current rates and consult a qualified Chartered Accountant (CA) or tax professional for advice specific to your business. BillBanao is an invoice formatting tool and is not a registered tax service provider.