Detailed Breakdown of Indian GST Rate Slabs (2026-27)
Every product and service has a designated classification code (HSN for goods, SAC for services). If you are not sure where your item belongs, check our HSN / SAC Code Directory. Here is what typically falls under each bracket:
0% (Nil / Exempt Rate Slab) - The Essentials
The government deliberately keeps basic, unbranded food items and healthcare exempt from tax so that everyday living expenses remain affordable for common households:
- Fresh vegetables and fruits directly from farmers, unpasteurized milk, curd, lassi, and buttermilk.
- Unpackaged, loose grains (atta, maida, besan, rice), pulses, and salt.
- Fresh meat, fish, eggs, and natural unprocessed honey.
- Printed books, newspapers, raw silk, handlooms, and judicial stamp papers.
Special 3% Precious Metals & Jewelry Slab with GST Calculator
Gold and precious jewelry don't fit well into the regular slabs. If gold were taxed at 18%, it would drive the market underground; if it were 0%, the state would lose substantial revenue. A dedicated 3% slab balances both needs. Keep in mind: making charges on jewelry carry a separate 5% rate with Input Tax Credit (ITC). You can test jewelry invoices right inside our online GST calculator.
5% (Merit / Everyday Essentials Rate)
Covers packaged food staples, essential medicines, and common public transport:
- Packaged and labelled food grains, edible cooking oils, sugar, tea, and roasted coffee beans.
- Life-saving medicines (like insulin, essential formulations) and diagnostic test kits.
- Footwear priced under ₹1,000 and readymade clothing under ₹1,000.
- Domestic LPG cylinders, economy flight tickets, and Indian Railways passenger AC tickets.
- Goods Transport Agency (GTA) freight when opting for the 5% scheme.
How to Apply Rate Slabs in a GST Calculator (12% Tier)
The 12% tier generally includes processed foods, agricultural machinery, and standard business hardware:
- Business computers, desktop laptops, printers, and external storage drives.
- Packaged butter, ghee, cheese, fruit purees, fruit juices, and frozen meat products.
- Apparel and garments with a retail selling price above ₹1,000.
- Hotel stays with room tariffs between ₹1,001 and ₹7,500 per night.
18% (Standard General Slab - Where Most Business Happens)
This is the most common rate in India. If you provide professional services, build software, or sell electronics, this is likely your slab:
- IT consulting, software development, SaaS subscriptions, telecom, banking, insurance, and marketing.
- Smartphones, monitors, electronic gadgets, and industrial machinery parts.
- Everyday toiletries like hair oil, soaps, toothpaste, and household chemicals.
- Hotel accommodations above ₹7,500 per night, outdoor event catering, and restaurants in luxury hotels.
Compensation Cess on Luxury & Demerit Goods (28% Slab)
Reserved for luxury vehicles and de-merit items like tobacco. On top of the 28% GST, the government levies a variable GST Compensation Cess:
- Passenger cars and SUVs (cess ranges from 1% on small cars up to 22% on large SUVs).
- Air conditioners, high-end refrigerators, dishwashers, and cooling compressors.
- Aerated soft drinks and caffeinated beverages (subject to an extra 12% cess).
- Cigarettes, cigars, pan masala, and tobacco products (with cess climbing up to 290%).
- Real-money online gaming, racecourses, and casinos (full 28% on the face value of the bet).
