GST Rates in India: Definition, Meaning & Guide for Indian Businesses

After the GST 2.0 reform (effective 22 September 2025) India has four main GST slabs: 0%, 5%, 18%, and 40%. Gold is at 3%. The earlier 12% and 28% slabs were removed.

What is GST Rates in India?

The GST 2.0 reform, effective 22 September 2025, simplified GST to four main slabs. 0% (exempt) covers fresh food, notebooks, pencils, many life-saving drugs, healthcare and education. 5% covers most food and packaged staples, medicines, apparel and footwear up to ₹2,500 per piece, metal utensils, bicycles and solar equipment. 18% is the most common slab, covering most goods and services, electronics, air conditioners, TVs, cement, and small cars. 40% applies to sin and luxury goods like aerated drinks, tobacco, pan masala, luxury vehicles and online gaming. Gold and silver attract 3% and rough diamonds 0.25%. The earlier 12% and 28% slabs no longer exist; most 12% items moved to 5% and most 28% items to 18%. Each HSN/SAC code maps to one specific rate, and using the wrong rate creates GST liability for both buyer and seller.