GST Rate Slabs in India 2024 — Which Rate Applies to You?
India's GST framework places every product and service into one of six rate categories. Knowing which slab applies to your transaction is the single most important step in any GST calculation.
- India has six GST rate slabs: 0%, 3%, 5%, 12%, 18%, and 28% — plus special rates of 0.25% and 1.5% for diamonds.
- The 18% slab is the default rate and covers most goods and services where no special rate is prescribed.
- 0% GST applies to essentials like fresh produce, milk, eggs, books, and education and healthcare services.
- The 28% slab covers luxury and demerit goods such as cars and tobacco, often with an additional GST Cess.
- Every product's rate is determined by its HSN code, and every service by its SAC code — not by the product's common name.
- Businesses above ₹5 crore turnover must show the full 8-digit HSN code on invoices.
This guide breaks down every GST rate slab with real-world product examples, so you can identify the correct rate quickly. It also explains how HSN and SAC codes connect products and services to their applicable rates.
What Are the GST Rate Slabs in India?
India's GST Council established six standard rate bands: 0%, 3%, 5%, 12%, 18%, and 28%. A small number of goods attract special rates of 0.25% (rough diamonds) and 1.5% (cut and polished diamonds). The majority of everyday goods and most services fall under the 5%, 12%, or 18% slabs.
0% GST — Zero-Rated and Exempt Goods
The 0% slab covers essential items that the government wants to keep affordable. There is an important distinction between zero-rated and exempt goods — one that matters significantly for input tax credit claims.
Zero-rated supplies (like exports and supplies to SEZs) allow businesses to claim ITC on inputs even though output tax is zero. Exempt supplies do not attract GST and also do not qualify for ITC on inputs.
Fresh fruits and vegetables, milk and dairy (unprocessed), eggs, meat and fish (unprocessed), cereals and pulses (unbranded), salt, water (non-bottled), fresh bread, books and newspapers, educational services, healthcare services.
5% GST Slab — Merit Goods and Basic Necessities
The 5% slab covers goods and services that are widely used but not considered bare essentials. Many agricultural inputs fall here to support the farming sector.
Food: Packaged and branded food items, edible oils, sugar, tea, coffee, frozen vegetables, fish (processed).
Medicines: Life-saving drugs, basic medicines, vaccines.
Services: Railways (AC class), economy class air travel, small restaurants (without AC).
Other: Coal, fertilisers, agro machinery, renewable energy devices.
12% GST Slab — Processed and Standard Goods
The 12% slab covers a wide range of processed goods and some services. Many manufactured goods that have been through significant processing fall here.
Food: Ghee, butter, cheese, frozen meat products, fruit juices, namkeen and snacks.
Electronics: Mobile phones (verify current rates — revised periodically).
Textiles: Apparel above ₹1,000, readymade garments.
Services: Work contracts for non-residential construction, business class air travel.
18% GST Slab — The Most Common Rate
The 18% slab is the most widely applicable rate in India. The majority of manufactured goods, most professional services, and most consumer products fall here. It is the default rate for services where no specific rate is prescribed.
Electronics: Computers, laptops, televisions, refrigerators, washing machines, air conditioners.
Services: IT services, financial services, telecom, insurance, consulting, marketing, restaurants (with AC).
Building materials: Cement, steel, paint, tiles, plywood.
Other: FMCG products (shampoo, toothpaste, soap), packaged drinking water above 20 litres, cameras.
28% GST Slab — Luxury and Demerit Goods
The 28% slab is reserved for luxury items and goods the government specifically wishes to discourage through taxation. Many items in this slab also attract an additional GST Cess on top of the 28% rate. The effective tax rate on premium cars and tobacco products can exceed 40%.
Vehicles: Passenger cars (with additional cess of 1–22% depending on engine size and type).
Tobacco: Cigarettes, cigars, pan masala, gutka (with additional cess).
Luxury goods: Premium cosmetics (above a certain price), aircrafts for personal use.
Construction: Premium residential construction projects in certain categories.
How to Find the GST Rate for Any Product — HSN and SAC Codes
Every product in India has an HSN (Harmonised System of Nomenclature) code — an internationally recognised classification number. The GST rate for any product is determined by its HSN code, not its common name.
Similarly, every service has a SAC (Services Accounting Code). Businesses with turnover above ₹5 crore must include the full 8-digit HSN code on all invoices. Businesses below this threshold may use 4-digit codes.
How do you quickly look up an HSN code?
The official GST portal at gst.gov.in provides a comprehensive HSN code search tool. The CBIC website maintains the master GST rate schedule. Most GST accounting software packages include built-in HSN lookup functionality.
For the calculation method at each of these slabs, see our step-by-step guide on how to calculate GST in India. If you are unsure whether to use CGST/SGST or IGST, read our article on CGST vs SGST vs IGST differences.
GST Portal — HSN/SAC code and rate search
CBIC — GST rate schedule notifications
GST Rate Slabs — Frequently Asked Questions
How many GST rate slabs are there in India?
India has six standard GST rate slabs — 0%, 3%, 5%, 12%, 18%, and 28% — plus two special rates of 0.25% and 1.5% that apply only to diamonds.
Which GST slab applies to most goods and services?
The 18% slab is the most widely applicable rate and is the default for services and goods where no specific rate has been prescribed.
How do I find the GST rate for a specific product?
Look up the product's HSN code (for goods) or SAC code (for services) on the GST portal or CBIC rate schedule — the rate is tied to this code, not the product's common name.
Is the 28% GST slab the highest tax a product can attract?
28% is the highest standard slab, but luxury and sin goods like premium cars, cigarettes, and pan masala can attract an additional GST Cess on top of 28%, pushing the effective rate above 40%.
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