Understanding India’s 5 GST Tax Slabs

The GST Council has structured India’s indirect taxation into a 4-tier progressive tax rate system (plus a 0% Nil-rate category). This structure ensures that life essentials remain affordable for common citizens, while non-essential and luxury goods contribute higher tax revenues to the state.

0% Nil Rate
0% Slab — Nil / Exempted Goods & Services
Covers unbranded food staples, raw agricultural products, educational services, and basic healthcare essential for daily survival.
Key Items: Fresh vegetables, fruits, unbranded milk, curd, eggs, salt, newspapers, clinical health services, education.
5% Relief Rate
5% Slab — Household Necessities & Transport
Applies to packaged essentials, economy transport services, life-saving pharmaceuticals, and green energy items.
Key Items: Sugar, tea, coffee beans, edible oils, medicines, domestic LPG, economy flight tickets, railways, cab aggregators.
12% Standard Low
12% Slab — Processed Foods & Business Items
Applied to processed food products, diagnostic equipment, business hotel rooms, and select manufacturing hardware.
Key Items: Butter, cheese, fruit juices, non-AC restaurants, diagnostic kits, tooth powder, apparel priced > ₹1,000.
18% Most Common
18% Slab — Standard Services & Consumer Goods
The primary default GST slab covering the majority of manufactured goods, professional IT/B2B services, and capital equipment.
Key Items: IT & software consulting, mobile phones, laptops, telecom, banking, AC restaurants, personal care, capital goods.
28% Peak Rate
28% Slab — Luxury, Sin & Demerit Goods
The highest statutory tax rate reserved for luxury lifestyle goods, private automobiles, consumer durables, and demerit items (many of which also attract additional GST Compensation Cess).
Key Items: Motor vehicles & SUVs, motorcycles > 350cc, aerated sweetened drinks, air conditioners, pan masala, casino, online gaming.

Searchable GST Rate List 2026 (Item-Wise Chart)

Search by item name or HSN/SAC code, or filter by tax slab below to view the official GST rate and intra-state CGST + SGST tax split:

Item / Service Description Category HSN / SAC Code GST Rate Intra-State Split
Fresh Vegetables & Fruits Agricultural Goods 0701 - 0810 0% 0% CGST + 0% SGST
Milk, Curd, Paneer (Unpackaged/Unbranded) Dairy Products 0401 - 0406 0% 0% CGST + 0% SGST
Education Services (Schools & Colleges) Education 9992 0% 0% CGST + 0% SGST
Clinical Healthcare & Medical Consultations Healthcare 9993 0% 0% CGST + 0% SGST
Newspapers, Journals & Periodicals Print Media 4902 0% 0% CGST + 0% SGST
Sugar, Tea & Roasted Coffee Beans Food & Beverages 0901, 0902, 1701 5% 2.5% CGST + 2.5% SGST
Edible Vegetable Oils (Mustard, Sunflower, Soy) Kitchen Staples 1507 - 1515 5% 2.5% CGST + 2.5% SGST
Life-Saving Drugs, Formulations & Vaccines Pharmaceuticals 3004 5% 2.5% CGST + 2.5% SGST
Domestic LPG Cylinders Fuel & Energy 2711 5% 2.5% CGST + 2.5% SGST
Economy Air Travel & Railways Transport Passenger Transport 9964 5% 2.5% CGST + 2.5% SGST
Apparel & Footwear (Priced ≤ ₹1,000) Clothing 6101 - 6405 5% 2.5% CGST + 2.5% SGST
Butter, Cheese & Ghee Dairy Goods 0405 12% 6% CGST + 6% SGST
Fruit Juices & Packed Processed Foods Packaged Food 2009 12% 6% CGST + 6% SGST
Medical Diagnostic Kits & Surgical Gloves Medical Devices 3822, 4015 12% 6% CGST + 6% SGST
Hotel Accommodation (₹1,001 to ₹7,500/night) Hospitality 9963 12% 6% CGST + 6% SGST
Apparel & Footwear (Priced > ₹1,000) Textiles & Shoes 6101 - 6405 12% 6% CGST + 6% SGST
IT Software & Consulting Services Information Tech 998314 18% 9% CGST + 9% SGST
Mobile Phones & Smartphones Electronics 8517 18% 9% CGST + 9% SGST
Laptops, Desktops & Computer Monitors Hardware 8471 18% 9% CGST + 9% SGST
Telecom & Internet Broadband Services Telecommunications 9984 18% 9% CGST + 9% SGST
Banking, Financial & Insurance Services BFSI 9971 18% 9% CGST + 9% SGST
Restaurants (Air-Conditioned / Licensed) Hospitality 9963 18% 9% CGST + 9% SGST
Soaps, Toothpastes & Hair Oils Personal Care / FMCG 3305, 3401 18% 9% CGST + 9% SGST
Motor Cars & Automobiles (Petrol / Diesel / Hybrid) Automotive 8703 28% 14% CGST + 14% SGST (+ Cess)
Motorcycles & Two-Wheelers (> 350cc) Automotive 8711 28% 14% CGST + 14% SGST (+ Cess)
Air Conditioners & Refrigerators Consumer Electronics 8415, 8418 28% 14% CGST + 14% SGST
Aerated Sweetened Soft Drinks Beverages 2202 28% 14% CGST + 14% SGST (+ 12% Cess)
Online Money Gaming, Casinos & Horse Racing Entertainment / Gaming 9996 28% 14% CGST + 14% SGST
Gold, Silver & Platinum Jewelry Precious Metals 7113 3% 1.5% CGST + 1.5% SGST
Rough Diamonds & Uncut Precious Stones Gems & Stones 7102 0.25% 0.125% CGST + 0.125% SGST
Affordable Housing Residential Construction Real Estate 9954 1% 0.5% CGST + 0.5% SGST (No ITC)

Special GST Rates in India

Apart from the standard 5 slabs, the GST Council created special concessional rates for specific industries where standard rates would severely disrupt liquidity or exports:

Gold, Silver & Platinum 3%

Applied to precious bullion and finished jewelry (HSN 7113). Making charges are taxed separately at 5% with full Input Tax Credit benefit for jewelers.

Rough Diamonds & Stones 0.25%

Uncut and rough diamonds (HSN 7102) are taxed at an ultra-low rate of 0.25% to protect India’s global gem cutting and polishing dominance in Surat.

Affordable Housing Projects 1%

Under the Pradhan Mantri Awas Yojana (PMAY), residential flats up to 60 sq.m (metro) or 90 sq.m (non-metro) priced up to ₹45 Lakh attract 1% GST without Input Tax Credit.

Non-Affordable Residential Real Estate 5%

Under-construction residential apartments not qualifying as affordable housing are taxed at 5% effective GST without Input Tax Credit eligibility.

GST Compensation Cess (Luxury & Demerit Goods)

Under the Goods and Services Tax (Compensation to States) Act, 2017, an additional Compensation Cess is levied on specified sin, demerit, and luxury commodities on top of the peak 28% GST rate:

  • Motor Vehicles & Luxury SUVs: Small petrol cars (< 1,200cc) attract 1% cess; small diesel cars (< 1,500cc) attract 3% cess; mid-segment cars attract 15% cess; and large luxury SUVs attract 22% cess (total effective tax = 28% + 22% = 50%).
  • Cigarettes & Tobacco Products: Attract 28% GST plus specific ad valorem cess ranging from 5% to 290% plus fixed rupee levies per thousand sticks.
  • Aerated Drinks with Added Sugar: Attract 28% GST plus 12% Compensation Cess (effective 40%).
  • Coal, Lignite & Peat: Attract 5% GST plus a flat cess of ₹400 per metric tonne.
Important ITC Rule on Cess: Input Tax Credit (ITC) of Compensation Cess paid on inward supplies can ONLY be utilized to pay output Compensation Cess liability. It can never be set off against CGST, SGST, or IGST!

Invoicing Best Practices: Rule 46 Compliance

When creating a tax invoice, you must ensure your tax calculation matches the statutory slab. For intra-state transactions, split the rate equally into CGST and SGST columns. For inter-state sales, apply the full rate as IGST.

Need to calculate taxes instantly? Use our Free GST Calculator Online or create complete Rule 46 compliant bills with our Free GST Invoice Generator.

Frequently Asked Questions (FAQs)

The primary GST tax slabs in India are 0% (Nil / Exempt for unbranded staples, fresh food, education, healthcare), 5% (household essentials, transport, basic medicines), 12% (processed foods, business hotels, hardware), 18% (standard rate for IT services, commercial goods, restaurants), and 28% (luxury items, automobiles, aerated drinks, online gaming).
Gold, silver, platinum, and precious jewelry attract a special GST rate of 3%. In addition, making charges on jewelry attract 5% GST with Input Tax Credit eligibility.
Mobile phones (HSN 8517) and laptops/computers (HSN 8471) attract a standard GST rate of 18%.
Completely exempt items include fresh vegetables, unbranded milk, curd, paneer, eggs, fresh meat and fish, grains/flour not pre-packaged or labeled, salt, natural honey, newspapers, educational services provided by schools and colleges, and healthcare services by clinical establishments.
GST Compensation Cess is an additional levy under the Goods and Services Tax (Compensation to States) Act, 2017. It is applied exclusively to demerit and luxury goods such as cigarettes, tobacco products, pan masala, coal, and motor vehicles (SUVs and luxury cars) on top of the 28% peak GST rate.
For intra-state transactions (within the same state), the total GST rate is divided equally between CGST and SGST. For example: 5% = 2.5% CGST + 2.5% SGST; 12% = 6% CGST + 6% SGST; 18% = 9% CGST + 9% SGST; 28% = 14% CGST + 14% SGST. For inter-state transactions, the full rate is charged as IGST.

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