What are GST Rates in India?
GST (Goods and Services Tax) rates in India are the tax percentages applied to different goods and services under the unified indirect tax system. Introduced on July 1, 2017, GST replaced multiple central and state taxes with a single tax structure across India. The rates are decided by the GST Council, which meets periodically to review and revise them.
Every product and service in India falls into one of the defined GST slabs. The rate you pay depends on the classification of the item under the HSN code (for goods) or SAC code (for services). Restaurant owners, in particular, deal with multiple GST rates daily since raw ingredients, equipment, packaging, and food services all attract different rates.
- India has four main GST slabs: 5%, 12%, 18%, and 28%, plus an exempt category (0%)
- For intra-state sales, GST splits equally into CGST (Central) and SGST (State). For inter-state, IGST applies
- Some items attract additional cess over the 28% slab, such as aerated drinks (12% cess) and tobacco products