GST Rates 2026 — Complete Tax Rate Chart for Goods and Services
By Parul Singh, GST Practitioner · GST Rates · Updated June 2026
Table of Contents
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GST Rate Slabs in India
I get 20+ calls every week from Delhi business owners asking about GST rates. This comprehensive rate chart is what I send them. Bookmark this page. India has 5 main GST rate slabs: 0%, 5%, 12%, 18%, and 28%, plus a special compensation cess on some 28% items.
Official Reference: The GST rates are decided by the GST Council under Article 279A of the Constitution. The Council has met 53+ times since 2016 and made numerous rate changes. The latest rates are effective as per notifications issued under Section 9(1) of the CGST Act and corresponding SGST provisions.
| Rate Slab | Approximate Share of Total Items |
|---|---|
| 0% (Nil rated) | ~7% |
| 5% | ~17% |
| 12% | ~15% |
| 18% | ~43% |
| 28% | ~18% |
0% Rate (Nil-Rated) Items
These items attract zero GST -- no tax at all. Important for essential goods and services:
- Food grains: Rice, wheat, flour, dal, fresh fruits and vegetables
- Milk and dairy: Fresh milk, curd, paneer (unsold in packaged form)
- Eggs, meat, fish (fresh, not processed)
- Education: School/college fees, vocational training
- Healthcare: Hospital services, doctor consultations
- Transport: Public transport (bus, metro, local train)
📍 Real Example -- Chandni Chowk Grain Trader
A grain wholesaler in Chandni Chowk sells wheat and rice -- both 0% GST. But when he sells packaged branded wheat flour (like Aashirvaad), it attracts 5% GST. He must carefully classify: loose grain = 0%, packaged branded = 5%. Wrong classification means either losing customers (charging 5% instead of 0%) or facing demand notices (charging 0% instead of 5%).
5% Rate Items
- Packaged food items (branded atta, maida, besan)
- Restaurant services (non-AC, non-alcohol)
- Transport (railways, economy air travel)
- Textiles (below ₹1,000 per piece)
- Footwear (below ₹1,000 per pair)
- Life insurance, health insurance services
12% Rate Items
- Processed foods (butter, cheese, ghee, dry fruits)
- Textiles (above ₹1,000 per piece)
- Footwear (above ₹1,000 per pair)
- Business class air travel
- Hotel rooms (₹1,000-7,500 per night)
- Mobile phones (above ₹10,000)
18% Rate Items
This is the most common slab -- covering about 43% of all goods and services:
- All types of industrial goods
- IT and software services
- Telecom services
- Financial services (banking, insurance above ₹5 lakh)
- Hotel rooms (above ₹7,500 per night)
- AC restaurants with alcohol license
- Cosmetics, perfumes, hair oil
- Capital goods, machinery
📍 Real Example -- Okhla Software Company
A software development company in Okhla provides IT services to a Delhi-based client. The service attracts 18% GST: CGST ₹9% + SGST ₹9%. On a ₹5 lakh invoice, GST = ₹90,000. If the client is in Bangalore, IGST 18% = ₹90,000. Same rate, different split.
28% Rate Items
- Luxury cars, SUVs
- Aerated drinks, cigarettes, tobacco
- Cement, paint
- Air conditioners, washing machines
- Hotel rooms above ₹7,500
- 5-star hotel event services
⚠️ Common Mistake: Cars attract 28% GST + compensation cess (1-22% depending on type). A ₹15 lakh SUV in Delhi costs: 28% GST + 15% cess = 47.15% effective tax (including cess). That is ₹7.07 lakh in taxes alone!
Recent GST Rate Changes
The GST Council regularly reviews and changes rates. Here are key recent changes:
- Textile rate rationalization: Several textile items moved from 12% to 5%
- Restaurant services: 5% without ITC (most restaurants)
- Online gaming: 28% on full face value (not just platform fee)
- EV charging: Reduced to 5% to promote electric vehicles
💡 Pro Tip from Parul: GST rates change frequently. Always verify the current rate using the CBIC website (cbic-gst.gov.in) or the GST rate finder on gst.gov.in before invoicing. A wrong rate on your invoice can lead to demand notices or loss of ITC for your buyers. When in doubt, call me: +91 95401 04776
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Frequently Asked Questions
What is the GST rate on restaurant services?
5% without ITC for most restaurants. AC restaurants with alcohol license charge 18% with ITC. Delivery through platforms like Swiggy/Zomato: 5% charged by restaurant + 5% TCS collected by platform.
What is the highest GST rate in India?
28% is the highest GST slab, applicable to luxury items and sin goods like cars, aerated drinks, tobacco, and cement. Additionally, compensation cess of up to 22% applies on some 28% items, making the effective rate up to 50%.
Are there any items with special GST rates?
Yes. Gold attracts 3% GST, precious stones 0.25%, semi-precious stones 0.25%, rough diamonds 0.25%. These are special rates outside the main slab structure, decided by the GST Council considering the unique nature of these goods.
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