GST in India uses a multi-slab structure so that essential items are taxed lightly and luxury or 'sin' goods more heavily. Knowing the correct slab is essential for pricing and invoicing.
This guide explains the GST rate slabs, the role of cess, and how to find the rate for a given product or service.
What is GST Rates and Slabs in India explained?
GST rates are set by the GST Council and applied based on the HSN code (goods) or SAC (services). The main slabs are 0% (exempt/nil), 5%, 12%, 18% and 28%, with a compensation cess on select items like tobacco and luxury cars.
Some goods (e.g. precious metals) attract special low rates.
| Nil / 0% | Essential items, many unbranded foods |
|---|---|
| 5% | Mass-consumption items, transport |
| 12% / 18% | Standard rates for most goods and services |
| 28% + cess | Luxury and demerit goods |
Frequently asked questions
How do I find the GST rate for my product?
Identify the correct HSN code for the product and look up the notified rate for that HSN on the CBIC/GST rate finder.
Who decides GST rates?
The GST Council, a constitutional body of the centre and states, recommends GST rates and changes.