Tokkucal
GST Rates in India 2026: Full List of Slabs After the GST 2.0 Reform
Last updated: 03 September 2026
India's GST rate structure changed significantly under the GST 2.0 reform, effective 22 September 2025. The old five-slab system (0%, 5%, 12%, 18%, 28%) was simplified to mainly two main rates — 5% and 18% — with a new 40% slab for luxury and "sin" goods. If you've seen older articles quoting 12% or 28% as standard GST rates, they're describing the pre-reform structure.
Current GST Slabs (from 22 September 2025)
| Rate | Typically applies to |
|---|---|
| 0% | Essential, nil-rated and exempt goods and services |
| 5% | Everyday essentials, and most items that were previously taxed at 12% |
| 18% | The standard rate — most goods and services, including most items previously taxed at 28% |
| 40% | Luxury and "sin" goods — tobacco, pan masala, aerated/caffeinated drinks, large vehicles, big-engine motorcycles, yachts, personal aircraft, casinos, online money gaming, betting and lottery |
| 3% | Gold and jewellery (unchanged by the reform — kept at 3% on metal value; making charges are taxed separately at 5%) |
| 0.25% | Rough diamonds (unchanged) |
What Moved Where
The 12% and 28% slabs were removed entirely, not just renamed:
- Most goods and services previously at 12% moved down to 5% — this includes many packaged foods, personal care items and household goods.
- Most goods previously at 28% moved down to 18% — this includes most consumer electronics and appliances.
- A smaller set of luxury and demerit goods moved from 28% up to the new 40% slab instead of down to 18%.
Calculating GST at the New Rates
The GST formula itself didn't change — only the rates did:
GST = Amount × Rate ÷ 100
Total = Amount + GST
Use our GST Calculator to work this out instantly for any rate, in either direction (adding GST to a base price, or extracting it from a GST-inclusive total).
Frequently Asked Questions
When did the new GST rates come into effect?
The GST 2.0 rate reform took effect on 22 September 2025, following the 56th GST Council meeting.
Is the 12% GST slab completely gone?
Yes, as a general slab. Items that were taxed at 12% have moved to either 5% or 18% depending on the category.
What is the GST rate on gold jewellery now?
Gold and jewellery continue at 3% on the metal value, unchanged by the reform, with making charges taxed separately at 5%.
Why is there a 40% GST slab?
It was introduced specifically for luxury and 'sin' goods — items like tobacco, pan masala, large vehicles and online money gaming — that previously sat at 28% plus additional compensation cess.
Need to calculate GST on an amount?
Use the GST Calculator for any rate, in either direction.