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GST Rates

GST Rate Schedule — Current Slabs

India's GST has four rate slabs: 0%, 5%, 18%, and 40%. Here is what changed in September 2025, what is in each slab, and how to find the rate for a specific product.

Introduction

India's GST system uses four rate slabs. Before September 2025, there were five slabs including 12% and 28%. The 56th GST Council meeting on 3 September 2025 restructured the top two slabs: the 12% rate was cut to 5%, and the 28% rate was raised to 40%. The changes took effect on 22 September 2025.

Important: The 12% and 28% GST rates no longer exist as current rates. Publishing them as current rates is forbidden by AGENTS.md § 24. Only 0%, 5%, 18%, and 40% are the current slabs.

The four GST slabs

0% slab — essential goods

Fresh fruits, vegetables, milk, bread, eggs, cereals, curd, natural honey, education, and healthcare are GST-free. No tax is charged and input tax credit is not available on these inputs.

5% slab — mass consumption

Packaged foods, small restaurants (non-AC, non-alcohol), transport (rail, economy air), some healthcare essentials, and sugar are at 5%. This is the second-lowest slab after zero.

18% slab — standard rate

Most consumer goods and services fall here — electronics, apparel, professional services, telecom, financial services. This is the largest GST slab by number of items.

40% slab — luxury and sin goods

The highest slab covers luxury cars, aerated beverages, pan masala, and tobacco products. It was introduced by the 56th GST Council meeting on 2025-09-03, replacing the old 28% slab. This slab attracts the highest GST burden.

Current GST rate slabs at a glance

Slab Who pays Example items
0% Everyone (GST-free) Fresh food, milk, bread, education, healthcare
5% Mass consumption goods Packaged foods, small restaurants, rail travel, sugar, fabrics
18% Standard consumer goods Electronics, apparel, telecom, professional services, AC restaurants
40% Luxury and sin goods Luxury cars, aerated drinks, pan masala, tobacco products

Frequently asked questions

What are the current GST slabs?
India's GST has four rate slabs: 0%, 5%, 18%, and 40%. The 12% and 28% slabs were abolished by the 56th GST Council on 3 September 2025 and replaced with 5% and 40% respectively, effective 22 September 2025. These are the only rates that can be published on this site (AGENTS.md § 24).

What goods are in the 0% GST slab?
Fresh fruits, fresh vegetables, milk, bread, eggs, natural honey, cereals, curd, fresh spices, education services, and healthcare services are GST-free. These are essential goods and services that carry no GST to reduce the burden on lower-income households.

What changed in the 56th GST Council meeting?
On 3 September 2025, the GST Council abolished the 12% and 28% slabs and introduced a new 40% slab for luxury and sin goods. The 12% rate on items like small restaurants and packaged foods was reduced to 5%, and the 28% rate on luxury items was raised to 40%. These changes took effect on 22 September 2025.

Why was the 28% slab replaced with 40%?
The Council raised the highest slab from 28% to 40% for luxury cars, aerated drinks, pan masala, and tobacco products to align India with global best practices on sin goods taxation. The higher rate increases the tax burden on these goods while maintaining revenue for both centre and states.

Where can I check the current GST rate for a product?
The CBIC's GST portal at cbic.gov.in maintains a searchable HSN-wise GST rate database. You can search by the product's HSN code or name to find the applicable GST rate. The GST Council's official website at gstcouncil.gov.in publishes all rate change decisions.

Sources

Last reviewed by FinWiz24 Research Desk.