GST Slab Rates in India, Explained (with Examples)

India's GST started with four main slabs (5%, 12%, 18%, 28%). The September 2025 rate rationalisation collapsed that into a much simpler structure built around two main rates. Here is what applies now, with examples.

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The slab structure after September 2025

The GST Council's 2025 reform moved most items into two rates:

0% (exempt/nil) — unbranded food staples, many healthcare and education services, and individual life and health insurance premiums.
5% (merit rate) — everyday mass-consumption items, many packaged foods, footwear and apparel in lower price bands, and other essentials.
18% (standard rate) — the default for most goods and services: electronics, professional and IT services, restaurants outside composition, financial services and more.
40% (demerit rate) — tobacco products, pan masala, aerated/sugary drinks and luxury vehicles.

What happened to 12% and 28%?

They were largely abolished: most 12% items moved down to 5% and most 28% items moved to 18%, with demerit goods moving up to the new 40% rate. You will still encounter 12% and 28% on invoices issued before the change, and a handful of transitional cases — which is why GST calculators (including ours) still support those rates.

How the rate splits into CGST and SGST

For a sale within one state, whatever the slab, the rate splits equally between centre and state:

5% → 2.5% CGST + 2.5% SGST
18% → 9% CGST + 9% SGST
40% → 20% CGST + 20% SGST
Inter-state sales charge the full rate as IGST instead.

How to find the rate for your product or service

Every product has an HSN code and every service a SAC code, and the GST rate is fixed per code. Search the official CBIC rate finder (cbic-gst.gov.in) or check your supplier's invoice, which must state the HSN/SAC and the rate. When in doubt for services, 18% is the safest working assumption.

Frequently asked questions

What are the main GST slabs now?

Two main rates — 5% and 18% — plus 0% for exempt essentials and a 40% demerit rate for goods like tobacco and luxury cars, following the September 2025 rationalisation.

Is there still a 28% GST slab?

Mostly no. The 28% slab was dismantled in the 2025 reform: most items moved to 18%, while demerit goods moved to the new 40% rate. Legacy invoices may still show 28%.

What GST rate applies to IT and professional services?

18% — they sit in the standard slab. Exported services are zero-rated if you file a Letter of Undertaking (LUT).