Scope and assumptions
GST India rates as revised by the GST Council (56th meeting, effective 22 Sep 2025): two main slabs of 5% and 18%, a 40% demerit/luxury slab, and 0% exempt. CGST+SGST apply intra-state, IGST inter-state; the consumer-facing rate is the combined figure.
Quick navigation
- How to calculate GST → calculate-gst-india
- What falls in each slab → gst-slabs-india
- What GST is → what-is-gst-india
- The calculator → Percentage Calculator
Why the percentage keeps changing
"GST India percentage" isn't a fixed number — it's a set of slabs the GST Council resets. The big change came on 22 September 2025, when the old 12% and 28% slabs were scrapped and replaced by a cleaner 5 / 18 / 40 plus 0% structure. If a site still shows 12% or 28%, it's pre-reform and wrong. This page keeps the current numbers straight.
1. GST India percentage at a glance
Since the 22 September 2025 reform ("GST 2.0"), India has three positive slabs plus an exempt band:
| Slab | Rate | Typical coverage |
|---|---|---|
| Exempt | 0% | Milk, eggs, fresh fruit/vegetables, healthcare, education |
| Standard-low | 5% | Packaged food, sugar, tea, footwear & apparel under ₹1,000 |
| Standard | 18% | Most goods & services — electronics, AC restaurants, telecom, IT, capital goods |
| Demerit / luxury | 40% | Tobacco, cigarettes, aerated drinks, large/luxury cars, casinos |
The headline rate most businesses meet is 18%.
2. The 2025 reform (what changed)
Before Sep 2025, GST had four slabs: 5%, 12%, 18%, 28%. The 56th GST Council meeting simplified this:
- The 12% slab was removed — items mostly moved to 5% or 18%.
- The 28% slab was removed — most goods moved to 18%, while genuine sin/luxury items moved to a new 40% slab.
- Result: 5% / 18% / 40%, with 0% retained for essentials.
Key idea: Any page still showing "12% and 28%" is out of date after 22 Sep 2025. The current consumer-facing rates are 0 / 5 / 18 / 40%.
3. How the tax is split (CGST + SGST / IGST)
Although the consumer pays one combined rate, it is collected as:
- Intra-state sale: split into CGST (central) + SGST (state) — e.g., 18% = 9% CGST + 9% SGST.
- Inter-state sale: collected as IGST (integrated) at the full rate.
The total percentage charged to the buyer is unchanged; only the destination of the revenue differs.
4. Worked examples
| Price | Slab | GST | Total |
|---|---|---|---|
| ₹1,000 | 18% | ₹180 | ₹1,180 |
| ₹500 | 5% | ₹25 | ₹525 |
| ₹100 | 0% | ₹0 | ₹100 |
| ₹20,00,000 | 40% | ₹8,00,000 | ₹28,00,000 |
Check: ₹1,000 × 0.18 = ₹180; × 1.18 = ₹1,180. ✓
5. Common mistakes
- Using the old 12%/28% slabs — removed on 22 Sep 2025.
- Quoting CGST or SGST alone as "the GST" — the combined rate is what the customer pays.
- Treating 0% as "no record" — exempt goods are still filed, just at 0%.
- Forgetting the 40% demerit slab — tobacco and luxury cars are not 18%.
- Mixing GST with the old VAT — GST replaced state VAT/service tax on 1 Jul 2017.
Rate-by-rate worked example
| Price | Slab | GST | Total |
|---|---|---|---|
| ₹1,000 | 18% | ₹180 | ₹1,180 |
| ₹500 | 5% | ₹25 | ₹525 |
| ₹100 | 0% | ₹0 | ₹100 |
| ₹20,00,000 | 40% | ₹8,00,000 | ₹28,00,000 |
Before vs after the 2025 reform
| Old (pre-Sep 2025) | New (post-Sep 2025) |
|---|---|
| 5% | 5% (kept) |
| 12% | moved to 5% / 18% |
| 18% | 18% (kept) |
| 28% | moved to 18% / 40% |
Quick reference
| You want to… | Rate to use |
|---|---|
| Most goods/services | 18% standard |
| Essentials | 0% exempt |
| Packaged/low-value | 5% |
| Sin / luxury | 40% |
FAQ
Q: What is the GST percentage in India in 2026? Three positive slabs — 5%, 18%, and 40% (demerit/luxury) — plus 0% exempt, after the Sep 2025 reform.
Q: What happened to the 12% and 28% slabs? Removed on 22 Sep 2025; most 12% goods moved to 5%/18% and 28% goods to 18%, with sin goods going to 40%.
Q: What is the main GST rate? 18% for most goods and services.
Q: What is taxed at 40%? Tobacco, cigarettes, aerated drinks, large/luxury cars, and similar demerit or luxury items.
Q: What is 0% GST? Essentials such as milk, eggs, fresh produce, healthcare, and education.
Q: Is GST split between central and state? Yes — CGST + SGST intra-state, IGST inter-state; the combined rate is what the buyer pays.
Q: Where do I confirm the current rates? CBIC (https://cbic-gst.gov.in/) and the GST Council (https://gstcouncil.gov.in/).
Q: When did GST start in India? 1 July 2017, replacing state VAT and service tax.
Sources: CBIC / GST India (https://cbic-gst.gov.in/); GST Council (https://gstcouncil.gov.in/); 2025 simplification per PIB India press note (effective 22 Sep 2025).
Disclaimer: GST rates, slabs, and the 2025 reform are set by the GST Council and can change. This page is informational, not tax advice. Confirm the current rate on the official CBIC / GST Council sites or with a tax professional.
Sources and references
- CBIC / GST Indiahttps://cbic-gst.gov.in/
- GST Councilhttps://gstcouncil.gov.in/