GST 2.0, effective 22 September 2025, simplified India's rate structure. Knowing which slab applies helps you quote prices and invoice correctly.
This guide explains the current slabs and what changed.
The GST 2.0 slabs
- 0% — essentials, life-saving drugs, and individual health & life insurance
- 5% (merit) — common-use goods and many daily services
- 18% (standard) — most goods and services
- 40% (de-merit) — select luxury and sin goods
- 3% — a retained niche rate for precious metals like gold and silver
What happened to 12% and 28%?
The earlier 12% and 28% slabs were largely removed. Most 12% items moved to 5% or 18%, and most 28% items moved to 18% — while a few luxury and sin goods moved up to the new 40% rate.
Finding the rate for a specific item
The rate follows the item's HSN/SAC classification. Use the GST rate finder to search by product, then apply CGST + SGST for intra-state sales or IGST for inter-state sales.
Key takeaways
- GST 2.0 slabs: 0%, 5%, 18%, 40% (plus 3% for precious metals).
- 12% and 28% were largely merged into 5%/18% and 18%/40%.
- The rate depends on the HSN/SAC classification of the item.
- Verify the exact rate on the GST portal before invoicing.
This guide is general information, not tax advice. GST rules and rates can change with GST Council notifications — verify specifics on the official GST portal or with your CA.
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