GST Rates in India — Complete Rate List for All Goods and Services 2025

India's Goods and Services Tax (GST) operates on a four-tier rate structure designed to balance revenue requirements with the principle of taxing necessities at low rates and luxuries at higher rates. The four main slabs are 5%, 12%, 18%, and 28%. In addition, a 0% rate (complete exemption) applies to essential goods and services, and special rates of 0.25%, 1.5%, and 3% apply to specific categories like diamonds, airline tickets, and gold respectively.nnThe GST framework also includes a compensation cess over and above the 28% rate on certain demerit goods — automobiles (1% to 22% depending on category), tobacco products, aerated drinks, and coal. This cess was originally introduced to compensate states for revenue loss during GST transition, and while the compensation period ended, the cess continues as a revenue measure. The combined incidence on a luxury car can therefore reach 43% to 50% when the 28% GST rate and maximum cess are combined.nnDetermining the correct GST rate for any specific goods or services requires identifying the Harmonized System of Nomenclature (HSN) code for goods or the Services Accounting Code (SAC) for services. The Central Board of Indirect Taxes and Customs (CBIC) publishes the complete rate schedule through notifications under the CGST Act 2017. The GST portal at gst.gov.in provides a search tool for finding rates by HSN or SAC code. When a taxpayer charges the wrong rate on an invoice, it constitutes short-payment of tax and can attract penalty and interest.

The 0% or NIL GST rate applies to items that are either fully exempt from GST or are outside the GST net. These broadly cover essential commodities that the government has chosen not to tax to protect lower-income households. Fresh and unprocessed food items form the largest category of exempt goods — fresh vegetables and fruits, unbranded cereals and pulses, fresh milk, eggs, meat (non-processed), and fish. Agricultural produce such as raw cotton, jute, and silk yarn in their natural form are also exempt.nnKey services exempt from GST include: healthcare services provided by hospitals, clinics, and medical professionals; educational services from schools, colleges, and universities (up to higher secondary level); services by the Reserve Bank of India; services by foreign diplomatic missions; agriculture-related services including farm labour, warehousing of farm produce, and transportation of agricultural produce; and residential rental by individuals. Public transportation services including metro rail, local trains, and state road transport buses are also exempt.nnIt is important to distinguish between exempt supply (NIL rate) and zero-rated supply (also 0% tax but with the right to claim Input Tax Credit). Exports and supplies to Special Economic Zones are zero-rated — the supplier charges no GST but can claim ITC on inputs. Exempt supplies carry no GST and the supplier cannot claim ITC on inputs used for exempt supplies. A business making both taxable and exempt supplies must apportion ITC under Rule 42 of the CGST Rules.

The 5% slab is designed for goods and services that are essential but not fully exempt — items that need to remain affordable while still generating some revenue. This slab covers a significant volume of food and daily household items as well as several important services.nnIn the food category: packaged and labelled cereals, pulses, and flour attract 5% GST. Sugar, tea, and coffee (not in instant premix form) are at 5%. Spices and condiments in packaged form attract 5%. Edible oils in packaged form — mustard oil, sunflower oil, coconut oil — are at 5%. Frozen vegetables (other than fresh) and packaged fruits are at 5%.nnFor services: restaurant services (standalone restaurants not in hotels with room tariff above Rs.7,500) attract 5% GST with no Input Tax Credit available. Passenger transport by air economy class is at 5%. Transport by rail in air-conditioned coaches is at 5%. Works contract services for affordable housing projects (units up to Rs.45 lakh in metro cities) are at 5%. Healthcare services provided through clinical establishments with room rent above Rs.5,000 per day attract 5% GST on the room charges.

The 12% slab applies to a range of processed food products, construction materials, and specific services. Processed or packaged food items that go beyond basic cereals and pulses — biscuits, namkeen, pastries, ice cream mix, and similar processed snacks — attract 12% GST. Butter, cheese, and ghee are at 12%. Frozen meat products and non-vegetarian processed foods are typically at 12%. In the services sector, business class air travel, non-AC hotel restaurant services (where room rent is below Rs.7,500), and construction services for commercial projects are at 12%.nnThe 18% slab is the largest in terms of revenue and covers most services and a wide range of manufactured goods. All professional services — CA fees, legal services, IT consulting, engineering services, management consulting — attract 18% GST. Financial services including banking fees, insurance (health and general), and stock broking attract 18%. Telecom services, internet services, and cable television services are at 18%. Software products, IT-enabled services, and digital services are at 18%.nnIn the goods category: most electronics (mobile phones, laptops, cameras, refrigerators), all types of steel and iron products, paints and varnishes, plastic products, and most chemical products attract 18% GST. Footwear above Rs.1,000 MRP is at 18%. Clothing above Rs.1,000 per unit is at 12% (below Rs.1,000 is 5%). Understanding the 12% vs 18% distinction is particularly important for manufacturers and traders dealing in clothing, footwear, and processed foods where the rate changes at specific price thresholds.

The 28% slab applies to luxury goods, demerit goods, and items where high taxation is used as a policy instrument. Air conditioners and their parts are at 28%. All types of automobiles except electric vehicles attract 28% GST plus compensation cess ranging from 1% (small petrol cars below 1200cc) to 22% (large luxury cars and SUVs above 1500cc with certain engine specifications). Tobacco products, pan masala, and cigarettes are at 28% with very high compensation cess. Aerated drinks are at 28% with 12% cess. Washing machines, vacuum cleaners, and other white goods are at 28%.nnGold and precious metals attract a special rate of 3% GST — significantly lower than the standard rates. Gold jewellery making charges attract 5% GST in addition to the 3% on the gold value. Silver and platinum are also at 3%. Diamonds and precious stones attract 0.25% GST reflecting the government's policy to keep the gems and jewellery sector competitive in global markets.nnReal estate has a nuanced GST structure. Under-construction residential properties for affordable housing (units priced up to Rs.45 lakh in metropolitan cities) attract 5% GST without ITC. Other under-construction residential properties attract 12% GST without ITC (reduced from 18% with ITC to encourage adoption). Ready-to-move-in properties where Occupancy Certificate has been issued are outside GST altogether — only stamp duty and registration charges apply. Commercial property under construction attracts 18% GST with ITC available to the developer.

Finding the correct GST rate requires identifying the HSN (Harmonized System of Nomenclature) code for goods or SAC (Services Accounting Code) for services. The HSN code is an internationally standardised 8-digit numeric code — in India, 4-digit HSN is used on invoices for businesses with turnover below Rs.5 crore, and 8-digit HSN for businesses with turnover above Rs.5 crore. SAC is a 6-digit code specific to services.nnThe most reliable method to find the correct rate is using the CBIC GST Rate Finder tool at cbic-gst.gov.in or the GST portal rate search at gst.gov.in. Enter the HSN code or a description of the product — the tool returns the applicable CGST and SGST (or IGST) rate. For services, entering the SAC code or a description of the service type returns the applicable rate.nnWhen no specific HSN code entry covers a product, the residual entry under the relevant chapter is applied — typically at 18% for goods not specifically listed elsewhere. For services, any service not specifically listed or exempt falls under the residual entry attracting 18% GST. Common mistakes include: applying the rate for the raw material to the processed product (they can differ significantly), using the wrong HSN for similar but different products, and not accounting for rate changes notified through GST Council recommendations. Businesses should review their HSN classifications annually against CBIC notifications to ensure continued compliance.

The GST framework has specific provisions for cross-border trade. Imports of goods into India are subject to IGST (Integrated GST) at the applicable rate in addition to basic customs duty and other levies. IGST on imports is computed on the customs value plus basic customs duty — the importer pays IGST and can claim it as ITC against output GST liability. This mechanism ensures imported goods face the same tax burden as domestically produced goods.nnExports of goods and services are zero-rated under Section 16 of the IGST Act. Zero-rating means the exporter supplies goods or services at 0% GST but can claim full ITC on inputs used in producing those exports. The ITC credit is then refunded by the government either as a cash refund or as ITC carryover. Exporters can either export under Bond or Letter of Undertaking (LUT) without paying IGST and claim ITC refund, or export after paying IGST and claim the paid IGST as a refund.nnSupplies to Special Economic Zones (SEZs) are also zero-rated, treated on par with physical exports. Businesses supplying to SEZ units must follow similar LUT and refund procedures as physical exporters. The zero-rating treatment for exports and SEZ supplies is a significant competitive advantage for Indian exporters, ensuring they can offer globally competitive prices by removing the embedded tax cost on inputs.