Table of Contents
- Updated on : February 6, 2026
GST Rates in India 2025 - Complete List of Goods and Service Tax Rates, Slabs & Latest Revisions
🔍 Find Exact GST Rate for Any Product
Search from 1,195+ HSN codes and get precise GST rates instantly
🚀 Use HSN Rate Finder ToolThe Goods and Services Tax (GST) rates in India have undergone a revolutionary transformation with the implementation of GST 2.0 effective September 22, 2025. This comprehensive guide provides detailed information about the latest GST rates, classifications, compliance requirements, and their impact on businesses and consumers across India.
Understanding GST rates is essential for every stakeholder in the Indian economy - from large corporations to small businesses, traders, service providers, and consumers. The new simplified rate structure under GST 2.0 aims to reduce compliance burden, eliminate tax cascading, and promote economic growth while maintaining revenue sustainability.
🚀 Breaking News: GST 2.0 Implementation EFFECTIVE TODAY
September 22, 2025 - Historic GST 2.0 Launch
India's tax landscape has been transformed with the launch of Next-Generation GST reforms. The GST structure has evolved from the complex four-slab system (5%, 12%, 18%, 28%) to a simplified dual-tier structure comprising primarily 5% and 18% rates, with a special 40% rate for luxury and sin goods.
Key Highlights of GST 2.0:
- ✅ Simplified rate structure reducing compliance complexity
- ✅ Automated return filing and input tax credit processing
- ✅ Real-time GST validation and fraud prevention
- ✅ Enhanced digitization with AI-powered tax administration
- ✅ Estimated ₹48,000 crore revenue impact with taxpayer relief
📊 Comprehensive GST Rate Structure 2025
The GST 2.0 framework introduces a scientifically designed rate structure based on economic principles, consumption patterns, and social priorities:
🟢 0% - Nil Rated Items
- Essential food items (milk, vegetables, grains)
- Healthcare services and life-saving drugs
- Educational services
- Basic necessities for common people
🔵 5% - Merit Goods
- Daily essentials (sugar, tea, spices)
- Agricultural inputs and equipment
- Basic clothing and footwear
- Healthcare equipment and medicines
🟡 18% - Standard Rate
- Consumer durables and electronics
- Automobiles and two-wheelers
- Most services and industrial goods
- IT products and telecommunications
🔴 40% - Demerit Goods
- Tobacco and pan masala products
- Aerated drinks and caffeinated beverages
- Luxury cars above ₹40 lakhs
- Sin goods affecting public health
🏛️ Understanding GST Rate Fundamentals
What are GST Rates?
GST rates represent the percentage of tax levied on the transaction value of goods or services. Under the GST system, these rates are uniformly applied across India, eliminating the complexity of multiple state taxes that existed earlier.
GST Rate Calculation Formula:
Total Invoice Value = Taxable Value + GST Amount
CGST, SGST, and IGST Distribution
The GST system operates through three components:
| Transaction Type | CGST (Central) | SGST (State) | IGST (Inter-state) | Example (18% GST) |
|---|---|---|---|---|
| Intra-state Supply | 9% | 9% | 0% | CGST 9% + SGST 9% = 18% |
| Inter-state Supply | 0% | 0% | 18% | IGST 18% |
| Import of Goods | 0% | 0% | 18% | IGST 18% + Customs Duty |
📋 Detailed GST Rate Tables
🟢 Items at 0% GST Rate (Exempted/Nil Rated)
| Category | Products/Services | HSN/SAC Range | Conditions/Notes |
|---|---|---|---|
| Food & Agriculture | Fresh milk, curd, lassi, buttermilk | 0401-0403 | Unprocessed, natural state |
| Vegetables | Fresh vegetables, fruits | 0701-0714 | Unprocessed, not frozen |
| Grains | Rice, wheat, bajra, maize | 1001-1008 | Unbranded, loose |
| Healthcare | Hospital treatment, medical services | 9941 | Charitable hospitals included |
| Education | School, college education services | 9992 | Recognized institutions |
| Life Insurance | Individual life insurance policies | 9981 | Excluding group policies |
| Basic Food | Salt, jaggery, unbranded honey | 2501, 1702 | Natural, unprocessed |
| Essential Medicines | 33 life-saving drugs | 3001-3006 | As per government notification |
🔵 Items at 5% GST Rate (Merit Rate)
| Category | Products/Services | HSN/SAC Range | Key Features |
|---|---|---|---|
| Essential Food | Sugar, tea, coffee (not instant) | 1701, 0902, 0901 | Daily consumption items |
| Edible Oils | Mustard, sunflower, coconut oil | 1507-1518 | Essential cooking medium |
| Spices | Turmeric, coriander, cumin | 0904-0910 | Basic cooking ingredients |
| Dairy Products | Packed paneer, cheese | 0406 | Processed dairy items |
| LPG & Energy | Domestic LPG, kerosene (PDS) | 2711 | Subsidized fuel for cooking |
| Clothing | Readymade garments below ₹1,000 | 6101-6117 | Affordable clothing |
| Footwear | Footwear below ₹500 | 6401-6405 | Basic footwear needs |
| Healthcare | Diagnostic kits, medical devices | 9018-9022 | Essential healthcare equipment |
| Agriculture | Tractors below 40 HP, farming tools | 8701, 8201 | Supporting farmer community |
| Books & Media | Printed books, newspapers | 4901-4903 | Knowledge and information |
🟡 Items at 18% GST Rate (Standard Rate)
| Category | Products/Services | HSN/SAC Range | Market Impact |
|---|---|---|---|
| Automobiles | Cars, motorcycles ≤350cc | 8703, 8711 | Reduced from 28% under GST 2.0 |
| Electronics | Mobile phones, computers, laptops | 8517, 8471 | Technology accessibility |
| Home Appliances | TV, refrigerator, washing machine | 8528, 8418, 8450 | Reduced from 28% |
| Personal Care | Soaps, shampoos, toothpaste | 3401, 3305 | Daily hygiene products |
| Services | Restaurants, hotels, telecom | 9963, 9964, 9957 | Service sector standard rate |
| Industrial Goods | Machinery, capital goods | 8401-8487 | Manufacturing support |
| Textiles | Fabrics, garments above ₹1,000 | 5201-5212 | Textile industry standard |
| Financial Services | Banking, insurance (other than life) | 9961, 9981 | Financial sector services |
🔴 Items at 40% GST Rate (Demerit/Sin Goods)
| Category | Products | HSN Code | Additional Cess | Total Tax Impact |
|---|---|---|---|---|
| Tobacco Products | Cigarettes, bidis, hookah | 2402-2403 | Up to 204% | 40% + Cess |
| Pan Masala | Gutka, pan masala | 2106 | 60-204% | 40% + Cess |
| Aerated Drinks | Coca-Cola, Pepsi, energy drinks | 2202 | 12% | 52% total |
| Luxury Cars | Cars above ₹40 lakh | 8703 | 22% | 62% total |
| Caffeinated Beverages | Carbonated drinks with caffeine | 2202 | 12% | 52% total |
| Premium Motorcycles | Motorcycles above 350cc | 8711 | 15% | 55% total |
💎 Special GST Rates
3% GST Rate Items:
| Items | HSN Code | Special Conditions |
|---|---|---|
| Gold, Silver | 7108, 7106 | Precious metals trading |
| Diamond (Non-industrial) | 7102 | Gem and jewelry industry |
| Imitation Jewelry | 7117 | Artificial jewelry items |
0.25% GST Rate Items:
| Items | HSN Code | Specific Use |
|---|---|---|
| Industrial Diamonds | 7102 | Manufacturing and cutting tools |
| Rough Precious Stones | 7103 | Raw material for gem processing |
📈 GST 2.0 Implementation Timeline
GST Launch: Original GST implementation with four tax slabs (5%, 12%, 18%, 28%)
Pre-announcement: FM signals GST rate rationalization in final stages
56th GST Council Meeting: Historic approval of GST 2.0 reforms after 10.5-hour session
GST 2.0 Launch: Implementation of simplified rate structure and automated systems
🔧 GST Compliance Under New Structure
Key Compliance Changes in GST 2.0
Automated Return Processing
AI-powered system automatically validates and processes GST returns, reducing manual intervention and errors.
Real-time ITC Validation
Input Tax Credit verification happens in real-time, preventing fraudulent claims and ensuring genuine credit availability.
Simplified Rate Determination
With reduced rate slabs, businesses can easily determine applicable GST rates without complex classification issues.
Enhanced Digital Integration
Seamless integration with accounting software and ERP systems for automatic GST calculation and filing.
Penalty Rationalization
Reduced penalties for minor compliance issues with focus on education rather than punishment.
GST Registration and Compliance Requirements
| Business Type | Turnover Threshold | GST Registration | Return Filing Frequency |
|---|---|---|---|
| Regular Business | ₹40 lakh (₹20 lakh for NE states) | Mandatory | Monthly |
| Service Provider | ₹20 lakh (₹10 lakh for NE states) | Mandatory | Monthly |
| Composition Dealer | Up to ₹1.5 crore | Optional | Quarterly |
| E-commerce Operator | Any turnover | Mandatory | Monthly |
🧮 GST Calculation Methods
GST Calculator Tool
Calculate GST for your transactions using the standard formulas:
GST Calculation Formulas
GST Amount = Base Price × GST Rate ÷ 100
Total Price = Base Price + GST Amount
Base Price = Total Price ÷ (1 + GST Rate ÷ 100)
GST Amount = Total Price - Base Price
🏭 Industry-Specific GST Impact
Manufacturing Sector
Benefits of GST 2.0 for Manufacturers:
- ✅ Simplified input tax credit mechanism
- ✅ Reduced rate on capital goods (18% vs previous 28%)
- ✅ Elimination of cascading tax effects
- ✅ Seamless inter-state movement of goods
Service Sector
Service Sector Changes:
- 🔹 Standard 18% rate for most services
- 🔹 Exemptions for essential services (healthcare, education)
- 🔹 Simplified compliance for small service providers
- 🔹 Enhanced digital service delivery
Retail and E-commerce
Retail Sector Considerations:
- ⚠️ Mandatory registration for e-commerce operators
- ⚠️ TDS compliance for marketplace operators
- ⚠️ State-wise registration requirements
- ⚠️ Complex return filing for multi-state operations
🌍 Economic Impact of GST 2.0
📊 Expected Economic Benefits
Revenue Impact
₹48,000 crore estimated fiscal impact with improved collection efficiency
Compliance Reduction
40% reduction in compliance burden through simplified processes
Economic Growth
1.5-2% additional GDP growth expected from reduced tax friction
Price Reduction
5-15% price reduction on essential goods and consumer durables
📚 GST Rates by HSN Chapters - Complete Guide
Explore detailed GST rates for all product categories organized by HSN chapters. Our comprehensive database covers all 1,195+ HSN codes with current rates:
🌾 Food & Agricultural Products (Chapters 1-24):
Chapter 1: Live Animals, Animal Products Chapter 2: Meat and Edible Animal Offal Chapter 3: Fish, Crustaceans, Molluscs Chapter 4: Dairy Produce, Eggs, Honey Chapter 5: Other Animal Products Chapter 6: Live Trees and Plants Chapter 7: Edible Vegetables Chapter 8: Edible Fruit and Nuts Chapter 9: Coffee, Tea, Mate and Spices Chapter 10: Cereals Chapter 11: Products of Milling Industry Chapter 12: Oil Seeds and Oleaginous Fruits🏭 Chemicals & Industrial Materials (Chapters 25-40):
Chapter 25: Salt, Sulphur, Earths and Stone Chapter 26: Ores, Slag and Ash Chapter 27: Mineral Fuels and Oils Chapter 28: Inorganic Chemicals Chapter 29: Organic Chemicals Chapter 30: Pharmaceutical Products Chapter 31: Fertilizers Chapter 32: Tanning/Dyeing Extracts Chapter 33: Essential Oils and Cosmetics Chapter 34: Soap, Organic Waxes Chapter 39: Plastics and Articles Chapter 40: Rubber and Articles🧵 Textiles & Leather (Chapters 41-67):
Chapter 41: Raw Hides and Skins Chapter 42: Articles of Leather Chapter 50: Silk Chapter 61: Articles of Apparel (Knitted) Chapter 64: Footwear⚙️ Machinery & Equipment (Chapters 84-90):
Chapter 84: Nuclear Reactors, Boilers Chapter 85: Electrical Machinery Chapter 87: Vehicles Other Than Railway Chapter 90: Optical, Photographic Instruments❓ Frequently Asked Questions (FAQs)
Q1: What is the difference between GST 1.0 and GST 2.0?
Answer: GST 2.0 simplifies the rate structure from four slabs (5%, 12%, 18%, 28%) to primarily two slabs (5%, 18%) plus 0% and 40%, introduces automated compliance systems, and reduces overall tax burden on essential goods.
Q2: How do I find the GST rate for a specific product?
Answer: Use our HSN Rate Finder tool which contains 1,195+ HSN codes with current GST rates, or refer to the HSN chapter guides above.
Q3: Are there any exemptions under GST 2.0?
Answer: Yes, essential items like basic food products (milk, vegetables, grains), healthcare services, educational services, and life-saving drugs remain exempt (0% GST) under GST 2.0.
Q4: How is cess calculated on demerit goods?
Answer: Cess is calculated as a percentage of the transaction value in addition to GST. For example, cigarettes attract 40% GST + additional cess ranging from 36% to 204%, making the total tax burden very high.
🔮 Future of GST in India
Upcoming Developments in GST System:
- 🚀 AI-Powered Compliance: Machine learning algorithms for automatic fraud detection and compliance monitoring
- 🌐 Blockchain Integration: Tamper-proof transaction records and real-time tax tracking
- 📱 Mobile-First Approach: Complete GST compliance through mobile applications
- 🤖 Automated Audits: AI-driven risk assessment and targeted audit selection
- 🌍 Global Integration: Cross-border tax compliance and international trade facilitation
🎯 Key Takeaways
GST 2.0 represents a paradigm shift in India's indirect taxation system, focusing on simplification, digitization, and taxpayer convenience. The reduced rate slabs, automated processes, and emphasis on essential goods make it a taxpayer-friendly reform while maintaining revenue sustainability.
For Businesses: Prepare for simplified compliance, reduced costs, and improved cash flows. Invest in GST-compliant software and train your teams on new procedures.
For Consumers: Expect lower prices on daily essentials and consumer durables, with transparent tax structure and better service delivery.
Remember: Always use our HSN Rate Finder Tool for the most current and accurate GST rates for any product or service.