GST Rates

The GST Council is responsible for setting the GST rate slabs. The Council regularly reviews and updates the GST rates for various goods and services. Typically, luxury items attract higher GST rates, while essential goods enjoy lower rates. In India, GST is categorized into four slabs: 5%, 12%, 18%, and 28%.

Since the introduction of the Goods and Services Tax, the GST Council has periodically revised the rates for various products. The latest adjustment in the rates was implemented following the 41st GST Council Meeting on August 27, 2020. Prior to this, several GST Council Meetings had introduced changes in the rates.

According to the Union Budget for 2024-25, there have been no changes to the existing GST rates.

GST Rates in 2024

Below are some of the recent changes made to the GST rates:

Category	Previous GST Rates	Updated GST Rates
Railway Goods and Parts (Chapter 86)	12%	18%
Pens	12%	18%
Metal Concentrates and Ores	5%	18%
Certain Renewable Energy Devices	5%	12%
Recorded Media Reproduction and Printing	12%	18%
Broadcasting, Sound Recordings, and Licensing	12%	18%
Printed Materials	12%	18%
Packing Containers and Boxes	12%	18%
Scrap and Polyurethanes	5%	18%

During the most recent GST Council Meeting on June 22, 2024, the following changes were announced:

Items	Previous Rate	Updated Rate
Uniform Rate for All Milk Cans	–	12%
Uniform IGST for Aircraft Tool Kits Imports	–	5%
Carton Boxes and Cases	18%	12%
All Types of Solar Cookers	5%	12%
Uniform Rate for All Types of Sprinklers	–	12%
Indian Railways – Platform Tickets	–	Exempt
Indian Railways – Retiring Rooms/Waiting Rooms Services	–	Exempt
Indian Railways – Cloak Room Services	–	Exempt
Indian Railways – Transport Services	–	Exempt

Reduction in GST Rates

Category	Previous GST Rates	Revised GST Rate
Vehicles with retrofitting kits for individuals with disabilities	Applicability	5%
Keytruda for treating cancer	12%	5%
IGST on goods sold at the Indo-Bangladesh border	Applicability	NIL

Types of GST Rates and Structures in India

In India, the main GST slabs for regular taxpayers are 0% (nil-rated), 5%, 12%, 18%, and 28%. There are also some rare GST rates, including 3% and 0.25%.

Moreover, taxable composition taxpayers must pay GST at lower rates, such as 1.5%, 5%, or 6% on their turnover. Concepts like TDS and TCS are also applicable under GST, with rates of 2% and 1%, respectively.

The IGST rates are applied for interstate supplies, while the combined CGST and SGST rates are for intrastate supplies. To calculate GST on a tax invoice, multiply the GST rate by the assessable value of the goods or services.

Additionally, a cess is levied on specific products such as cigarettes, tobacco, aerated drinks, gasoline, and motor vehicles, with tax rates ranging from 1% to 204%.

Products	Tax Rates
Milk	0%
Eggs	0%
Curd	0%
Lassi	0%
Kajal	0%
Educational Services	0%
Health Services	0%
Children's Drawing & Coloring Books	0%
Loose Foodgrains	0%
Loose Paneer	0%
Jaggery	0%
Unbranded Honey	0%
Fresh Vegetables	0%
Salt	0%
Loose Atta	0%
Loose Maida	0%
Besan	0%
Prasad	0%
Palmyra Jaggery	0%
Phool Bhari Jhadoo	0%

 

Products	Tax Rates
Sugar	5%
Tea	5%
Packed Paneer	5%
Coal	5%
Edible Oils	5%
Raisin	5%
Domestic LPG	5%
Roasted Coffee Beans	5%
PDS Kerosene	5%
Skimmed Milk Powder	5%
Cashew Nuts	5%
Footwear (< Rs.500)	5%
Milk Food for Babies	5%
Apparels (< Rs.1000)	5%
Fabric	5%
Coir Mats, Matting & Floor Covering	5%
Spices	5%
Agarbatti	5%
Coal	5%
Mishti/Mithai (Indian Sweets)	5%
Life-saving drugs	5%
Coffee (except instant)	5%

 

Products	Tax Rates
Butter	12%
Ghee	12%
Computers	12%
Processed food	12%
Almonds	12%
Mobiles	12%
Fruit Juice	12%
Preparations of Vegetables, Nuts Fruits, or other parts	12%
Packed Coconut Water	12%
Umbrella	12%

 

Products	Tax Rates
Hair Oil	18%
Capital goods	18%
Toothpaste	18%
Industrial Intermediaries	18%
Soap	18%
Ice-cream	18%
Pasta	18%
Toiletries	18%
Corn Flakes	18%
Soups	18%
Computers	18%
Printers	18%

Products	Tax Rates
Small cars (subject to 1% or 3% cess)	28%
High-end motorcycles (additional 15% cess)	28%
Consumer goods like ACs and refrigerators	28%
Beedis are excluded from this list	28%
Luxury and indulgence items like BMWs and cigarettes	28%
Aerated drinks (with an additional 15% cess)	28%

HSN and SAC Classification System

All goods and services traded within the country are categorized under the HSN code or SAC code system as per GST. Goods are classified under the HSN Code, while services fall under the SAC Code.

GST rates are divided into five categories based on the HSN or SAC code, specifically NIL, 5%, 12%, 18%, and 28%.

• HSN Classification

The HSN code, or Harmonized System Nomenclature code, is an internationally recognized system for describing and coding commodities, developed by the World Customs Organization. This system is used by more than 200 countries to structure their customs tariffs.

Currently, over 98% of global trade commodities are categorized using the HSN code. To standardize GST classifications, the Government of India adopted the HSN code for GST levy purposes.

The most recent version used in international transactions is the HSN Code 2017 Edition. Before this, the HSN Code 2012 Edition was in use. The HSN codes are arranged into sections and chapters, each containing specific six-digit codes within the Harmonized System.

• SAC Classification

The SAC Code, or Services Accounting Code, was introduced by the Service Tax Department of India for classifying services. GST rates for services are divided into five categories using the SAC code: 0%, 5%, 12%, 18%, and 28%. In cases where no GST exemption or rate is specified for a service, the default rate of 18% will apply.