GST Rates List India 2026: Item-Wise 0%, 5%, 18% and 40% Slabs
Since GST 2.0 took effect on 22 September 2025, India runs on four main rate slabs: 0%, 5%, 18% and 40%. The old 12% and 28% slabs are gone. This is the item-wise reference list most people actually search for: which everyday goods and services sit in each slab after the reform, category by category.
If you want the high-level story of why the slabs were collapsed, read our GST 2.0 rate structure guide. This article is the lookup table you keep open while updating your item master.
Rates here are indicative by category, not a substitute for HSN/SAC classification. GST is levied on the specific HSN code of a good or the SAC code of a service, and some categories split across slabs based on price, packaging or branding. Before you invoice or amend a return, confirm the exact rate against the current CBIC notification for your product's HSN/SAC. See our HSN and SAC code guide.
The Four Slabs at a Glance
Tax Rate Chart
GST 2.0 Slab Structure (Effective 22 September 2025)
Four main rates replaced the old five-tier 0/5/12/18/28% system
Nil rate : most unbranded food staples, individual health and life insurance, lifesaving medicines, educational stationery
Expanded under GST 2.0
Merit rate : essentials and mass consumption, packaged food, general medicines, medical devices
Absorbed roughly 99% of old 12% items
Standard rate : most goods and services, electronics, small cars, professional and IT services
Absorbed roughly 90% of old 28% items
Luxury and sin rate : aerated drinks, luxury cars, high-cc bikes, tobacco, pan masala, gaming
Narrow, all-inclusive rate
Source: GST 2.0 reform effective 22 September 2025; CBIC rate schedules
Two ideas explain almost every movement:
- The 12% slab was eliminated. Roughly 99% of items that sat at 12% moved down to 5% (dairy, personal care, packaged snacks, many medical devices). The remainder moved up to 18% (for example, textiles priced above ₹2,500 and a few select services).
- The 28% slab was restructured. Around 90% of its items moved down to 18% (air conditioners, televisions, small cars). Only luxury and sin goods were pushed up to the new 40% slab.
The net effect is that most mainstream goods became cheaper, while a narrow band of luxury and sin categories became more expensive.
0% (Nil-Rated): What You Pay No GST On
The nil slab was widened under GST 2.0. The headline change is that individual health and life insurance premiums, previously taxed at 18%, are now exempt.
| Category | Examples |
|---|---|
| Individual insurance | Individual health insurance premiums, individual life insurance premiums (moved from 18%) |
| Lifesaving medicines | 33 specified lifesaving medicines (moved from 12% to nil) |
| Unbranded food staples | Most unbranded and unpackaged food staples |
| Education inputs | Educational stationery items |
The insurance exemption applies to individual health and life cover. The exemption of the 33 lifesaving medicines and the widening of nil-rated staples are among the most consumer-visible parts of the reform. Where a food item is branded or pre-packaged, it can shift from nil into the 5% band, so packaging status matters.
5% (Merit Rate): Essentials and Mass Consumption
The 5% slab is where most of the eliminated 12% items landed, alongside the existing essentials. Treat this as the "daily necessities" band.
| Category | Examples |
|---|---|
| Packaged food staples | Common packaged food staples |
| Dairy | Dairy products (categories moved down from 12%) |
| Medicines | General medicines (not the specific nil-rated lifesaving list) |
| Medical devices | Medical devices moved down from 12% |
| Footwear and apparel | Footwear and apparel below the applicable price threshold |
| Personal care | Common personal care items moved down from 12% |
Because footwear, apparel and some food categories split by price or packaging, treat the 5% classification as the starting point and confirm the threshold that applies to your specific item.
18% (Standard Rate): Most Goods and Services
The 18% slab is now the default rate for the economy. If a good or service is neither an essential nor a luxury/sin item, it almost certainly sits here. This band absorbed roughly 90% of the old 28% slab.
| Category | Examples |
|---|---|
| Consumer electronics and appliances | Air conditioners, televisions, refrigerators (moved down from 28%) |
| Automobiles | Small cars (moved down from 28%) |
| IT and software | IT and software services |
| Professional services | Professional and consulting services |
| General goods and services | Most goods and services not otherwise specified |
| Select former-12% items | A minority of old 12% items that moved up rather than down, such as textiles priced above ₹2,500 |
For big-ticket consumer durables such as air conditioners, televisions and small cars, the move from 28% to 18% is a 10-percentage-point reduction. If you sell these, the rate cut is expected to be passed on to the customer, so audit your price tags as well as your tax master.
40% (Luxury and Sin Rate): The Narrow Top Band
The 40% slab is deliberately small. It captures items the GST Council wanted to tax more heavily, whether for revenue or public-health reasons. It is an all-inclusive rate for these categories.
| Category | Examples |
|---|---|
| Sugary and aerated beverages | Aerated and sugary drinks |
| Luxury vehicles | Luxury cars |
| High-capacity motorcycles | Motorcycles above 350cc |
| Tobacco and related | Tobacco, cigars, pan masala |
| Gaming and betting | Casino, betting and online gaming admissions |
If your business is not in one of these categories, you will not see 40% on an invoice. For everyone else in these sectors, note that this is the total GST rate for the item, not a base rate to which something else is added.
Services After GST 2.0
Services largely follow the same logic as goods. The standard position is 18%, with specific categories mapped down to 5% or nil, and a narrow set of admissions (casino, betting, online gaming) at 40%. IT, software and professional services remain in the standard 18% band. Because services are classified by SAC code rather than HSN, the classification discipline is the same: identify the correct SAC, then read the rate off the current schedule.
How to Use This List Correctly
The single most common invoicing error after a rate reform is applying a category-level rate to a product that splits within the category. A few practical rules:
- Start from HSN/SAC, not from the product name. The rate attaches to the code, not the marketing description.
- Watch price and packaging thresholds. Footwear, apparel and certain food items change slab based on price or whether they are branded and pre-packaged.
- Update the item master, not just the invoice template. A stale rate in your accounting software will keep re-appearing on new invoices and create GSTR-2B mismatches for your buyers.
- If you are registering a new business, map your product catalogue to slabs before your first invoice. Our GST registration process guide walks through the steps.
Frequently Asked Questions
How many GST slabs are there in 2026?
Four main slabs after GST 2.0: 0%, 5%, 18% and 40%, effective 22 September 2025. The earlier five-tier system of 0%, 5%, 12%, 18% and 28% was collapsed into these four.
What happened to the 12% GST slab?
It was eliminated. Roughly 99% of items that were at 12% moved down to 5%, including dairy, personal care, packaged snacks and many medical devices. The remainder moved up to 18%, such as textiles priced above ₹2,500 and a few select services.
What happened to the 28% GST slab?
It was restructured. About 90% of its items, including air conditioners, televisions and small cars, moved down to 18%. Only luxury and sin goods were moved up to the new 40% slab.
Is health insurance still taxed at 18%?
No. Individual health and life insurance premiums, which were taxed at 18%, are now nil-rated under GST 2.0.
Which items are taxed at 40%?
A narrow list of luxury and sin goods: aerated and sugary drinks, luxury cars, motorcycles above 350cc, tobacco, cigars, pan masala, and casino, betting and online gaming admissions.
Are these rates final for every product?
Treat them as indicative by category. GST is charged on the specific HSN or SAC code, and some categories split across slabs by price, packaging or branding. Confirm the exact rate against the current CBIC notification for your product's code before invoicing.
Where to Go Next
If your catalogue spans several of these bands, the practical work is mapping each SKU to its HSN or SAC code, confirming the slab, and locking it into your accounting software before the next filing cycle. Get that right once and your monthly GST return filing becomes a reconciliation exercise rather than a classification scramble.
This guide reflects the GST 2.0 reform effective 22 September 2025, which replaced the five-tier 0/5/12/18/28% structure with the 0/5/18/40% slabs described above. Slab movements and category mappings are drawn from GST Council decisions and CBIC rate schedules. Because rates attach to specific HSN and SAC codes and several categories split by price, packaging or branding, confirm the exact rate for any individual item against the current CBIC notification before issuing invoices or amending returns.
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