GST Rates in India — Slab-wise List
Updated June 2026 · VerifiedWhat Are the Four GST Slabs in India?
The GST Council has prescribed four primary rate slabs. Additionally, certain items are taxed at 0.25%, 1.5%, or 3% (e.g., rough diamonds and gold).
| GST Slab | Category | Common Examples |
|---|---|---|
| 5% | Essential / Mass consumption | Packed food items, economy rail travel, small restaurants (non-AC), footwear below ₹1,000, apparel below ₹1,000, fertilisers, newspapers |
| 12% | Standard (lower) | Processed food, butter, ghee, fruit juices, cell phones, sewing machines, umbrella, business class rail tickets, state lotteries |
| 18% | Standard (higher) | Most goods & services: IT services, financial services, restaurants (AC), steel products, capital goods, telecom, branded garments above ₹1,000, hair oil, toothpaste, soap |
| 28% | Luxury / Demerit | Automobiles, cement, chocolate, aerated drinks, air conditioners, washing machines, TVs, pan masala, tobacco, luxury hotels (tariff > ₹7,500) |
Which Goods and Services Are Nil-Rated or Exempt?
Several essential goods and services attract 0% GST (nil-rated) or are exempt from GST:
| Category | Examples |
|---|---|
| Food grains | Wheat, rice, flour (atta), pulses, fresh vegetables, fresh fruits (unpacked, unbranded) |
| Dairy | Fresh milk, curd, lassi, buttermilk (unpacked) |
| Healthcare | Healthcare services by hospitals and clinics, blood, vaccines |
| Education | Services by educational institutions up to higher secondary |
| Agriculture | Seeds, raw jute, live animals, firewood, charcoal, agricultural services |
| Others | Salt, non-branded natural honey, handloom, Khadi, books, newspapers (print), judicial stamps, postal services (India Post) |
What Are the Special GST Rates?
| Rate | Applicable To |
|---|---|
| 0.25% | Rough diamonds (uncut, unpolished) |
| 1.5% | Cut & polished diamonds |
| 3% | Gold, silver, platinum, gold jewellery, silver jewellery |
| 28% + Cess | Luxury cars (cess 1-22%), aerated drinks (12% cess), tobacco products (cess varies), pan masala, coal (₹400/tonne) |
What Is the Composition Scheme and Its Rates?
The composition scheme is a simplified GST compliance option for small businesses with annual turnover up to ₹1.5 crore (₹75 lakh for special category states). Key features:
- No need to issue tax invoices — bill of supply instead.
- File quarterly returns (CMP-08) instead of monthly GSTR-1 and GSTR-3B.
- Cannot collect GST from customers or claim ITC.
- Cannot make inter-state sales.
| Category | CGST | SGST | Total GST |
|---|---|---|---|
| Manufacturers | 0.5% | 0.5% | 1% |
| Traders (Goods) | 0.5% | 0.5% | 1% |
| Restaurants (no alcohol) | 2.5% | 2.5% | 5% |
| Service providers (turnover up to ₹50 lakh) | 3% | 3% | 6% |
What Is the GST on Services?
| Service | GST Rate |
|---|---|
| Restaurants (non-AC, no ITC) | 5% |
| Restaurants (AC / premises with liquor licence) | 18% (with ITC) or 5% (without ITC) |
| Hotel room (tariff up to ₹1,000) | 12% |
| Hotel room (tariff ₹1,001 – ₹7,500) | 18% |
| Hotel room (tariff above ₹7,500) | 28% |
| Transport — Cab aggregator (auto) | 5% |
| Transport — Cab aggregator (car) | 5% |
| Air travel (economy) | 5% |
| Air travel (business) | 12% |
| IT & Software services | 18% |
| Banking & Financial services | 18% |
| Telecom services | 18% |
| Legal / CA / Consulting services | 18% |
| Freight transport (goods by road) | 5% (no ITC) or 12% (with ITC) |
| Insurance (life / health) | 18% |
Frequently Asked Questions
How many GST slabs are there in India?
There are four main GST slabs: 5%, 12%, 18%, and 28%. Additionally, special rates of 0.25%, 1.5%, and 3% apply to specific items like diamonds and gold. Essential items are nil-rated (0%).
Is GST applicable on food items?
Unpacked and unbranded food grains, fresh fruits, vegetables, milk, curd, and eggs are nil-rated (0% GST). Packed and labelled food items attract 5% GST. Processed foods like chocolates, biscuits, and ready-to-eat meals are taxed at 12% or 18%.
What is the GST rate on gold and jewellery?
Gold, silver, platinum, and their jewellery attract GST at 3%. Making charges on jewellery are taxed at 5%. Rough (uncut) diamonds attract 0.25% GST.
Who can opt for the composition scheme?
Businesses with annual turnover up to ₹1.5 crore (₹75 lakh in special category states) can opt for the composition scheme. Service providers with turnover up to ₹50 lakh are also eligible. Inter-state sellers, e-commerce suppliers, and manufacturers of notified goods (ice cream, pan masala, tobacco) cannot opt in.
What is the compensation cess under GST?
Compensation cess is an additional charge on luxury and demerit goods taxed at 28%. It was introduced to compensate states for revenue loss during GST transition. Items like luxury cars (1-22%), aerated drinks (12%), tobacco products, and coal attract this cess.
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