GST Rate Chart India 2026 - Complete Reference

GST in India follows a multi-tier structure. Essential items like unprocessed food, healthcare, and education are exempt (0%). Basic necessities like packaged food, medicines, and economy travel fall under 5%. Processed goods and standard items are at 12%. Most services and manufactured goods attract 18%. This is the standard rate covering the majority of transactions. Luxury and demerit goods are taxed at 28%, with some attracting additional compensation cess.

The 18% slab is where most businesses operate. If you are a service provider (IT, consulting, legal, financial), your services are almost certainly at 18%. For goods, the rate depends on the specific product and its HSN code. When creating GST invoices, selecting the correct rate is crucial for proper tax calculation.

Step 1: Identify the HSN code for your product. The Harmonized System of Nomenclature (HSN) is an internationally standardized classification system. In India, 4-digit HSN codes are used for businesses with turnover up to Rs. 5 crore, and 6-digit codes for larger businesses.

Step 2: Look up the rate in the GST rate schedule. The official schedule is available on the CBIC website. You can also search on the GST portal (gst.gov.in) under the HSN/SAC code search feature.

Step 3: Apply the rate correctly on your invoice. For intra-state supply (buyer and seller in the same state), split the rate equally into CGST and SGST. For inter-state supply, charge the full rate as IGST.