GST in India is a multi-slab tax — different goods and services are taxed at different rates depending on how essential or how luxurious they are. This overview explains the slab structure as it stands in 2026 and how to find the rate that applies to what you sell.
The main GST slabs
The core rate structure has long rested on these slabs:
| Rate | Broadly applies to |
|---|---|
| 0% (Exempt) | Essential goods — fresh produce, unbranded food grains, milk, salt, books |
| 5% | Mass-consumption items — packaged staples, footwear/apparel up to a value, transport |
| 12% | Processed foods, certain intermediate goods, specified services |
| 18% | The standard rate — most goods and services, electronics, professional services |
| 28% | Luxury and demerit goods — cars, tobacco, aerated drinks, high-end items |
18% is the workhorse rate that covers the majority of goods and services.
Special rates
Beyond the main slabs, GST has a few special rates:
- 0.25% — rough diamonds and certain precious/semi-precious stones
- 1.5% — specified cut and polished diamonds
- 3% — gold, silver, platinum and jewellery
These low rates reflect the high value and specific treatment of bullion and gemstones.
Compensation cess and higher effective rates
On certain demerit and luxury goods — such as tobacco products, aerated drinks, and larger motor vehicles — a compensation cess applies over and above the GST rate. This pushes the effective tax on those items well above the headline slab. The GST Council also periodically rationalises slabs and rates, so the treatment of specific categories can change from year to year.
The rate is the same everywhere
A crucial point that reassures interstate sellers: GST rates are uniform across India. A product taxed at 18% is 18% whether sold in Punjab or Tamil Nadu. What differs is only the split:
- Intra-state (same state): the rate splits into CGST + SGST (e.g. 18% = 9% + 9%)
- Inter-state (different states): the full rate is charged as IGST (e.g. 18% IGST)
The total the customer pays is identical either way.
How the rate is decided: HSN and SAC
Every GST rate is tied to a classification code:
- Goods → HSN code
- Services → SAC code
To find the rate for your product, you first find its correct code, and the rate follows from it. This is why accurate classification matters so much — the wrong code can mean the wrong rate.
How to find your rate
- Decide whether you’re selling goods (HSN) or a service (SAC).
- Look up the description in an HSN & SAC code finder.
- Note the GST rate attached to that code.
- Confirm against the CBIC-GST portal, since rates are revised periodically.
- Apply the correct CGST/SGST or IGST split based on the place of supply.
A quick example
You sell a mix of items:
- Fresh vegetables → 0% (exempt)
- Packaged snacks → 12% (confirm the exact code)
- A laptop → 18%
- Gold jewellery → 3%
Each item’s rate comes from its HSN code — one invoice can legitimately carry several different rates.
The bottom line
India’s GST runs on main slabs of 0%, 5%, 12%, 18% and 28%, with special low rates for gemstones and bullion and additional cess on some demerit goods. 18% is the default for most supplies. Rates are uniform nationwide, differing only in the CGST/SGST vs IGST split — and because the Council revises them periodically, always confirm the current figure for your item.
Calculate GST on any amount, at any slab, instantly with the free GST Calculator.