GST rates in India are categorized into five main slabs, each applicable to different goods and services. These rates are set by the GST Council, which revises them periodically based on the economic needs and feedback from various stakeholders. The current GST rate structure includes the following slabs:
- 0% GST (Nil Rate)
This category includes essential goods and services, which are exempt from GST to make them affordable for the general public.
Examples: Fresh fruits and vegetables, milk, bread, salt, education services, healthcare services.
- 5% GST
This rate is applied to common use items and services that are essential but not as critical as those in the 0% category.
Examples: Household necessities (sugar, tea, edible oil), branded cereals, spices, footwear below ₹1000, small restaurants, transport services (railways, air travel in economy class).
- 12% GST
This rate is applied to processed foods, intermediate goods, and some consumer goods.
Examples: Processed food (packaged dry fruits), cell phones, umbrellas, hotel accommodation costing between ₹1,001 to ₹7,500 per night, business class air travel.
- 18% GST
This is the standard rate applied to most goods and services, considered neither essential nor luxury.
Examples: IT services, financial services, restaurants (other than small restaurants with 5% GST), telecom services, industrial intermediaries, and products like soaps, toothpaste, and refrigerators.
- 28% GST
This rate is applied to luxury items and products deemed non-essential or harmful.
Examples: Luxury cars, high-end motorcycles, aerated drinks, cigarettes, and tobacco products, five-star hotels, AC and large restaurants, entertainment services like movie tickets costing above ₹100.
Special Rates:
- Gold, Jewelry, and Precious Stones: A special rate of 3% is applied.
- Real Estate: GST on under-construction property is 5% without ITC (Input Tax Credit) for residential properties (1% for affordable housing).
Recent Updates:
The GST Council periodically reviews the rates and may introduce changes to balance fiscal policy and inflation control. It is important for businesses to stay updated with the latest notifications from the GST Council regarding rate changes.
| GST Rate | Type of Goods/Services | Examples |
| 0% | Essential goods and services | Fresh fruits, vegetables, milk, healthcare, education |
| 5% | Common use items | Edible oil, tea, small restaurants, economy class travel |
| 12% | Processed foods and some consumer goods | Packaged dry fruits, cell phones, hotel accommodation |
| 18% | Standard goods and services | IT services, financial services, soaps, refrigerators |
| 28% | Luxury and non-essential items | Luxury cars, aerated drinks, five-star hotels |
| 3% | Precious metals and stones | Gold, silver, jewelry |
| 1% to 5% | Composition scheme for small businesses | Manufacturers, traders, small restaurants |