Indirect tax · Reference
GST Tariff Rates
India moved to a simplified GST 2.0 slab structure from 22 September 2025 (56th GST Council meeting), collapsing the old five-tier system into essentially four rates.
| Slab | Applies to |
|---|---|
| 0% (Nil) | Essential food staples, select life-saving drugs (33 items), educational materials, individual health & life insurance |
| 5% | Daily essentials — soap, shampoo, butter, ghee, namkeen, packaged food, agricultural inputs, healthcare equipment |
| 18% | Default / standard rate — most goods and services, electronics, appliances, small cars, most B2B services |
| 40% | Sin & luxury goods — pan masala, aerated/caffeinated beverages, large cars, motorcycles >350cc, casinos (tobacco items deferred to a later date) |
| 0.25% / 3% | Niche rates retained for rough diamonds (0.25%) and gold/silver/precious stones (3%) |
What changed under GST 2.0
| Before 22 Sep 2025 | After 22 Sep 2025 |
|---|---|
| 0% / 5% / 12% / 18% / 28% | 0% / 5% / 18% / 40% |
| Most 12% items | Moved to 5% or 18% |
| Most 28% items | Moved to 18%; sin/luxury goods to 40% |
| Compensation cess (autos, ACs, tobacco) | Rolled into the consolidated 40% slab |
| Individual health & life insurance — 18% | Exempted (0%) |
Composition scheme & TDS/TCS rates
| Composition — traders/manufacturers | 1% |
| Composition — restaurants (non-alcohol) | 5% |
| Composition — services | 6% |
| TDS under GST | 2% |
| TCS under GST (e-commerce operators) | 0.5% |
Look up an exact HSN/SAC rate. This page covers the slab structure, not every HSN code. For item-wise classification, use the official CBIC GST rate finder.
Source. 56th GST Council meeting decisions (3 September 2025), Notifications 09/2025-CTR to 17/2025-CTR dated 17 September 2025, effective 22 September 2025. Tobacco/pan masala transition to 40% follows a separate, later effective date. Verify item-specific classification against the current CBIC notification before billing.
