GST Rate Slabs in India
India's GST has five main rate slabs: 0% (essential goods), 5% (basic necessities like food, medicine), 12% (standard rate for many goods), 18% (most goods and services), and 28% (luxury goods and services). Additionally, some goods attract cess on top of GST rates.
0% GST Rate Items
Common 0% GST items include: unbranded/unpackaged food grains (rice, wheat, pulses), fresh vegetables and fruits, milk and curd, eggs, salt, newspapers, books and printed material, healthcare services by registered practitioners, and education services by recognized institutions.
5% GST Rate Items
5% GST applies to: packed food items (branded rice, pulses), medicines and drugs (most), transport services (rail and road), household items (sugar, edible oil, tea, coffee), footwear under ₹1,000, garments under ₹1,000, restaurant food (non-AC), and some agricultural products.
12% GST Rate Items
12% GST includes: packaged food, mobiles and smartphones, butter, ghee, cheese, notebooks and stationery, umbrella, sewing machine, watches (under ₹10,000), ayurvedic medicines, and most processed food items.
18% GST Rate Items
18% GST (the most common rate) includes: electronics (TV, AC, washing machine), computers and laptops, most services (banking, insurance, telecom, IT), AC restaurant food, hotels (₹2,500-₹7,500/night), most manufactured goods, paints, cement, pipes, toothpaste, soap, and shampoo.
28% GST Rate Items
28% GST applies to luxury and sin goods: cars, motorcycles, tobacco products, aerated drinks, pan masala, caffeinated beverages, AC hotels above ₹7,500/night, 5-star restaurants, and premium electronics/appliances.