GST Tax Rate in India — Slabs, HSN/SAC & How Rates Are Decided
India’s GST uses a multi-slab rate structure — different goods and services are taxed at different rates depending on their classification. This guide explains the GST rate slabs, how rates are decided, and how to find the correct rate for your product or service. (The GST Council revises rates from time to time — always confirm the current rate for your HSN/SAC.)
The GST rate slabs
The main GST rates are:
- 0% (Nil): essential items — many unbranded food staples, certain health and education supplies.
- 5%: mass-consumption items and several essentials.
- 12%: standard goods and services in the middle band.
- 18%: the most common rate — most services and a wide range of goods.
- 28%: luxury and “sin”/demerit goods, some with an additional compensation cess.
Special rates apply to a few items (for example, gold and precious stones at concessional rates). Note: the GST rate structure has been periodically rationalised, so the number and level of slabs can change.
Who decides GST rates?
The GST Council — comprising the Union and State Finance Ministers — decides and revises the rates and slabs. Each good is classified by its HSN code and each service by its SAC code, which determines the applicable rate.
How to find the rate for your product/service
- Identify the correct HSN (goods) or SAC (services) classification.
- Check the applicable rate against the current GST rate notification / the official GST rate finder.
- When in doubt on classification, take professional advice — the wrong HSN can mean the wrong rate and compliance risk.
TAXAJ helps with GST registration, classification and returns.
Frequently asked questions
What are the GST rate slabs in India?
The main slabs are 0%, 5%, 12%, 18% and 28% (some items carry an additional cess), with a few special rates. Slabs are periodically rationalised.
Who decides GST rates?
The GST Council decides and revises rates; each item’s rate depends on its HSN/SAC classification.
How do I find the GST rate for my product?
Determine the correct HSN/SAC and check the current GST rate notification or the official rate finder.
Unsure about your GST rate or classification? TAXAJ gets your HSN/SAC and GST right. Get GST help from TAXAJ →
Related guides: GST registration · Find HSN/SAC code · GST returns
