This is a comprehensive reference of GST rates for common goods and services in India, updated for 2025 following the recommendations of the 53rd GST Council meeting. Rates are subject to change based on subsequent GST Council decisions. Always verify with the official CBIC notification before filing returns.
GST Rate Slabs
- 0% (Exempt / Nil rated): Fresh produce, milk, eggs, bread, education, and healthcare services
- 5%: Packed food items, economy air travel, life-saving drugs, fertilisers, and handloom items
- 12%: Computers, processed food, business class air travel, and hotels below Rs. 7,500 per night
- 18%: IT services, consulting, banking, electronics, restaurants (air-conditioned), telecom
- 28%: Luxury cars, tobacco, aerated drinks, cement, and large air conditioners
GST Rates for Common Goods
| Item | HSN Code | GST Rate |
|---|---|---|
| Fresh vegetables and fruits | 07, 08 | 0% (Exempt) |
| Milk, curd, paneer (unpackaged) | 0401-0406 | 0% (Exempt) |
| Branded cereals and flour (packed) | 1001-1102 | 5% |
| Sugar | 1701 | 5% |
| Edible oil (branded) | 1507-1516 | 5% |
| Tea and coffee | 0901, 0902 | 5% |
| Mobile phones | 8517 | 12% |
| Computers and laptops | 8471 | 18% |
| Cement | 2523 | 28% |
| Passenger cars (below 1200cc petrol, below 1500cc diesel) | 8703 | 28% + 1% Cess |
| Luxury cars (above 1500cc) | 8703 | 28% + 15 to 22% Cess |
| Cigarettes and tobacco | 24 | 28% + High Cess |
| Gold and silver | 7108, 7106 | 3% |
| Diamonds | 7102 | 1.5% |
| Life-saving medicines (listed) | 3004 | 5% or Exempt |
GST Rates for Common Services (SAC Codes)
| Service | SAC Code | GST Rate |
|---|---|---|
| Restaurants (non-AC, no liquor licence) | 996331 | 5% (no ITC) |
| Restaurants (AC or hotel dining) | 996331 | 18% |
| Hotel rooms below Rs. 1,000 per night | 996311 | 0% (Exempt) |
| Hotel rooms Rs. 1,001 to Rs. 7,500 per night | 996311 | 12% |
| Hotel rooms above Rs. 7,500 per night | 996311 | 18% |
| IT and software services | 998314 | 18% |
| Consulting and professional services | 998311 | 18% |
| Banking and financial services | 9971 | 18% |
| Medical services (hospitals) | 9993 | 0% (Exempt) |
| Education (school / college) | 9992 | 0% (Exempt) |
| Air travel – economy class | 996311 | 5% |
| Air travel – business class | 996311 | 12% |
| Goods transport by road (GTA) | 9965 | 5% (RCM) or 12% (FCM) |
| Legal services (to businesses) | 9982 | 18% (RCM on individual advocates) |
| Online gaming (real money) | 998439 | 28% on face value |
Composition Scheme Rates
| Business Type | Turnover Limit | Composition Rate |
|---|---|---|
| Manufacturers and traders (goods) | Up to Rs. 1.5 crore | 1% (0.5% CGST + 0.5% SGST) |
| Restaurants (food services, no liquor) | Up to Rs. 1.5 crore | 5% (2.5% CGST + 2.5% SGST) |
| Service providers | Up to Rs. 50 lakhs | 6% (3% CGST + 3% SGST) |
Frequently Asked Questions
Where can I find official GST rate notifications?
Official GST rates are published in the CGST (Rate) Notification and IGST (Rate) Notification on the CBIC website (cbic.gov.in). These are updated after each GST Council meeting.
What happens if I charge the wrong GST rate?
You are liable to pay the correct tax regardless of what was charged to the customer. If you undercharged, you must pay the difference from your own funds. If you overcharged, the customer can claim a refund.
How do I find the GST rate for a specific product?
Use the HSN (Harmonised System of Nomenclature) code of your product to identify the applicable rate. The CBIC has a rate search tool on its website. Dealintax provides written HSN classification opinions for complex cases.
Also See
Frequently Asked Questions About GST Rates in India
Clear answers on GST rates, HSN codes, exemptions, and recent changes — from Dealintax’s GST compliance team.
What are the current GST tax slabs in India?
India’s GST rate structure has six slabs: 0% (exempt — essential goods like unprocessed food, vegetables, milk, eggs, unbranded grains), 5% (basic necessities — packed food, coffee, tea, medicines, economy class air travel), 12% (standard goods and services — processed food, butter, business class air travel, work contracts), 18% (most goods and services — IT services, restaurant meals, hotel accommodation below ₹7,500/night, telecom, financial services), 28% (luxury and demerit goods — cars, motorcycles, cigarettes, aerated drinks, high-end hotels). Gold, silver, and diamonds attract a special 3% GST rate.
What is an HSN code and why do I need it on invoices?
HSN (Harmonised System of Nomenclature) is an internationally standardised 8-digit code system for classifying goods. In GST, HSN codes are mandatory on tax invoices above certain thresholds: businesses with turnover above ₹5 crore must use 6-digit HSN codes; businesses between ₹1.5 crore and ₹5 crore must use 4-digit HSN codes; businesses below ₹1.5 crore are exempt from HSN codes on invoices. The HSN code determines the applicable GST rate for each product. Using an incorrect HSN code can result in paying the wrong GST rate, leading to underpayment liability or excess tax payment.
What is an SAC code and when does it apply?
SAC (Services Accounting Code) is the equivalent of HSN for services — a 6-digit code that classifies every type of service under GST. SAC codes are mandatory on invoices for all GST-registered service providers. For example: SAC 9983 covers legal services, 9984 covers telecommunications, 9985 covers support services, and 9986 covers agriculture support services. Like HSN codes, the SAC code determines the applicable GST rate for the service. Mixing up SAC codes — especially between 18% and 12% service categories — is a common compliance error that Dealintax’s CA team helps businesses avoid.
Which goods and services are exempt from GST in India?
Major GST-exempt categories include: fresh fruits and vegetables (unprocessed), milk, eggs, unbranded flour and pulses, books, newspapers and periodicals, healthcare services, educational services (pre-school to higher secondary), religious services, funeral and burial services, agricultural and fishing activities, services provided by the government, and residential renting (commercial rentals are taxable at 18%). Exempt supplies are different from zero-rated supplies — zero-rated supplies (exports) allow ITC claims, while exempt supplies do not.
How do I find the GST rate for my specific product?
The most reliable way to find the correct GST rate for your product is: (1) search the GST HSN rate lookup tool on the GST portal (gst.gov.in → Services → User Services → Search HSN Code), (2) cross-reference with the GST Rate Schedule notifications issued by the GST Council, or (3) consult Dealintax’s GST team for a formal HSN code and rate confirmation for your product category. Self-determination of GST rates without expert verification is the primary cause of GST notices for short payment. Dealintax provides HSN/SAC code advisory as part of its GST registration and compliance packages.
What is the GST rate on services provided by a Chartered Accountant or lawyer?
Professional services provided by a Chartered Accountant (CA), Company Secretary, Cost Accountant, or lawyer to a business attract GST at 18% (SAC code 9982 for legal services, 9983 for CA and advisory services). For legal services provided by an individual advocate to a business entity, the Reverse Charge Mechanism (RCM) applies — the business receiving the service pays the 18% GST directly to the government rather than the advocate. For CA services, the normal forward charge applies — the CA charges 18% GST on their professional fees.
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