GST Rate Slabs in India — Complete List
GST Rate Structure Overview
India's Goods and Services Tax follows a multi-tier rate structure, with most goods and services falling into one of five slabs: 0% (exempt/nil-rated), 5%, 12%, 18%, and 28%. A small set of goods (luxury and sin goods) also attracts GST Compensation Cess on top of the 28% slab.
0% (Nil-Rated / Exempt)
- Fresh fruits and vegetables, unbranded food grains, milk, curd, fresh meat and fish
- Educational services provided by recognised institutions
- Healthcare services by clinical establishments and doctors
- Books, newspapers, and printed periodicals
- Unprocessed agricultural produce
5% Slab
- Packaged food items — branded cereals, tea, coffee, edible oils, sugar
- Life-saving drugs and specific pharmaceutical items
- Economy-class air travel and rail transport
- Footwear and apparel below ₹1,000
- Coal
12% Slab
- Processed food items, butter, ghee, cheese
- Mobile phones and accessories (as of recent revisions)
- Business-class air travel
- Ayurvedic medicines
- Umbrellas, sewing machines
18% Slab (Most Common)
This is the default rate for the majority of goods and services not specifically classified elsewhere:
- Most professional and consulting services — legal, accounting, IT services
- Restaurants (non-AC and AC, with some variation by category and input credit eligibility)
- Financial services, insurance premiums
- Electronics — computers, printers, most household appliances
- Telecom services
- Construction services (with abatement rules for real estate)
28% Slab (Luxury and Sin Goods)
- Automobiles (with additional Compensation Cess ranging from 1% to 22% depending on engine size and type)
- Tobacco products, pan masala, aerated drinks (all with substantial Compensation Cess)
- Air conditioners, large-screen televisions, dishwashers
- Casino, race club betting, and gambling services
Special Rates
- Gold, silver, and precious stones: 3% (with 5% making charges for gold jewellery in some cases)
- Rough diamonds: 0.25%
- Composition scheme taxpayers: 1% (traders), 5% (restaurants without alcohol), 6% (service providers under the composition scheme) — paid on turnover, not itemised by rate slab
How to Find the Correct GST Rate for Your Product or Service
The applicable rate depends on the specific HSN code (goods) or SAC code (services) classification, not just the general category — many product categories span multiple rate slabs depending on specifications (for example, footwear above vs below ₹1,000, or AC vs non-AC restaurant services). Misclassification is one of the most common triggers for a GST scrutiny notice.
If you're unsure which rate applies to your specific product or service — especially for new product lines or borderline classifications — our CA team can confirm the correct HSN/SAC classification before you start invoicing, which is far cheaper than correcting it after a department notice.