GST rates in India after GST 2.0
Four main slabs since 22 September 2025, plus the special rates that survived.
Last checked 20 September 2026
Since the GST 2.0 rationalisation on 22 September 2025 there are four main slabs: 0%, 5%, 18% and 40%. The old 12% and 28% slabs were removed, with most of those goods moving to 5% or 18%. Special rates of 3% on gold, silver and jewellery and 0.25% on rough precious stones continue.
The slabs
| Rate | Typically applies to |
|---|---|
| 0% | Essentials such as fresh food, and notified items including a list of lifesaving medicines |
| 5% | Merit goods: most medicines, many packaged foods and daily-use goods |
| 18% | The standard rate. Most goods and most services |
| 40% | A short list of luxury and “sin” goods |
| 3% | Gold, silver and jewellery |
| 0.25% | Rough precious and semi-precious stones |
What changed in GST 2.0
The two middle slabs went. Goods that sat at 12% mostly moved down to 5%; goods at 28% mostly moved up or down to 18% or into the new 40% bracket. The stated aim was a simpler structure with fewer classification disputes, since a large share of litigation under GST has been about which slab an item belongs in rather than whether tax is due at all.
Check your own items, do not assume
Slab changes are item by item, by notification, against HSN codes. A category moving "mostly" to 5% tells you nothing certain about the specific thing you sell. Get the current rate for your HSN codes from your accountant, and update your product master before you bill, not after.
The rate follows the code, not the description
What decides your rate is the HSN code for goods or the SAC code for services, not how you describe the product on the bill. Two items that sound similar in ordinary speech can sit in different chapters and attract different rates. See HSN and SAC codes explained.
Compensation cess
Some goods carry a cess on top of GST. Where it applies it is a separate line with its own rate, and it is not interchangeable with GST credit — cess credit can only be used against cess.
Keeping rates right in practice
- Store the HSN code and the rate against each product, not in someone’s head.
- When a notification changes a rate, change the product master on the effective date — not the next time someone notices.
- Invoices already issued keep the rate they were issued with. Correcting an old bill is a credit or debit note, not an edit.
Are the 12% and 28% slabs completely gone?
They were removed in the September 2025 rationalisation. Invoices raised before the effective date still carry the rate that applied then, and you may see those rates in old records for years.
How do I find the rate for my product?
Start from its HSN code and check the rate notified for that code. If the classification itself is uncertain — which is common for kits, combinations and new products — that is a question for a professional, not a search engine.
Does the rate differ between states?
No. GST rates are uniform across India. What differs between states is only whether the tax is collected as CGST + SGST or as IGST.
Sources
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Related reading
What is GST?
One tax on the supply of goods and services, charged at every stage but paid only on the value added.
HSN and SAC codes explained
The code that decides your tax rate, and how many digits you have to print.
CGST, SGST and IGST: which one do I charge?
Inside your state the tax splits in two. Across a state border it stays whole.