GST (Goods and Services Tax) in India is divided into different rate slabs based on the type of goods or services. These rates are decided by the GST Council and are updated from time to time.
In this post, we’ll explain the current GST rate slabs, provide examples, and help you understand how it affects your business or daily spending.
🔢 What Are the GST Rate Slabs?
There are five main GST slabs in India (as of 2025):
| GST Rate | Type of Goods/Services |
|---|---|
| 0% | Essential goods and services |
| 5% | Common-use items |
| 12% | Standard items |
| 18% | Most goods and services |
| 28% | Luxury items and sin goods |
✅ 0% GST – Tax-Free Items
These are mostly essential goods and services.
Examples:
- Fresh fruits and vegetables
- Milk, curd, eggs
- Salt, atta, maida, besan
- Books
- Bangles (non-precious)
- Educational and health services
🟡 5% GST – Essential But Taxed Items
These are items used by most households but not tax-free.
Examples:
- Sugar, tea, coffee (not branded)
- Edible oils
- Footwear under ₹1,000
- Medicines (life-saving)
- Railways and public transport
- Economy class air tickets
🟠 12% GST – Standard Rate
Applies to processed foods and general-use goods.
Examples:
- Packaged food like sauces, dry fruits
- Butter, ghee
- Toothpaste, hair oil
- Sewing machines
- Business class train travel
- Restaurant services (non-AC)
🔵 18% GST – Widely Applied Rate
This is the most common GST rate in India, applied to many goods and services.
Examples:
- Mobile phones
- Refrigerators, washing machines
- Instant food items (e.g., noodles, chocolates)
- AC restaurants
- Software and IT services
- Online platforms (e.g., Netflix, Spotify)
🔴 28% GST – Luxury and Sin Goods
Highest slab. Mostly for non-essential, luxury, or harmful goods.
Examples:
- Air conditioners
- Luxury cars
- Cigarettes, pan masala
- Paints, varnishes
- High-end electronics and appliances
- Betting, casinos, race club betting
⚠️ Additional Cess on Some Goods
In addition to 28% GST, cess is also applied on:
- Tobacco products
- Aerated drinks
- Luxury cars
This cess goes into a separate fund to compensate states.
📊 GST Rates Summary Table (2025)
| GST Rate | Examples |
|---|---|
| 0% | Fresh vegetables, milk, books, public education |
| 5% | Edible oil, tea, rail tickets, medicines |
| 12% | Packaged food, ghee, toothpaste, business train class |
| 18% | Mobiles, AC restaurant food, IT services |
| 28% | Cigarettes, cars, air conditioners, pan masala |
📝 Recent Updates by GST Council (Up to 2025)
- Online gaming & betting now taxed at 28% with effect from Oct 2023.
- Unbranded packaged food items kept under 5%.
- Some essential medical equipment and services continue to enjoy exemption or reduced rates.
Note: The GST Council revises rates from time to time. You can always check the official GST website or consult a tax expert for latest updates.
🧮 How GST Rates Affect You
- Consumers: Prices can vary based on tax rate.
- Businesses: Must apply the correct rate on invoices and collect/remit GST.
- Exporters: Most exports are zero-rated, meaning no GST is paid, and refunds can be claimed.
✅ Final Words
Understanding GST slabs helps you stay compliant, charge correct tax, and manage pricing better. Whether you’re a shopkeeper, manufacturer, freelancer, or customer — knowing the rate structure is important.
📞 Need Help With GST Rates, Billing or Filing?
If you are facing any difficulties related to rate classification, GST billing, return filing, business setup, or planning,
please contact us:
🧾 Taxeasy Solution
📍 Supaul Bazar, Biraul,
Darbhanga, Bihar – 847203
📞 Mob: 6289187606
📧 Email: jhajp96@gmail.com
