GST Rates in India 2025:GST Rates for Different Goods and Services in India
GST or the Goods and Services Tax, has been one of the biggest tax reforms in India. It has attempted to bring uniformity in the tax structure which had previously been quite complicated for the general population as well as the government and businesses. It is important for the entrepreneurs to be aware of the GST rates.
The GST tax rates have been revised from time to time as per the decisions of the GST Council. Several state legislatures and industrial authorities have maintained their rights to put forth their opinions to revise tax rates. Presently, GST has been structured in such a way that basic essential items have lower tax brackets than luxury services and products. The rate list and the tax slabs shall be discussed in this article. This article discusses the GST rates in India, types of GST, exempted items under GST, etc.
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GST Rates in India
The GST Council reviews rate slabs for goods and services regularly. GST rates are typically higher for luxury items and lower for necessities.
Current GST Slabs: 5%, 12%, 18%, 28%
(Latest changes notified in the 41st GST Council Meeting, August 27, 2020) -
Types of GST
- CGST (Central GST) – Levied on goods and services under central taxation. Revenue goes to the Central Government.
- SGST (State GST) – Levied under state authority. Revenue goes to the State Government.
- IGST (Integrated GST) – Levied on inter-state supply of goods/services. Revenue goes to Government of India.
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GST Rate Changes in 2025 (55th GST Council Meeting)
Effective Dates: 16th January 2025 & 1st April 2025
Key Notifications:
- CGST 1/2025: Fortified Rice Kernel (HSN 1904) → 5% GST
- CGST 2/2025: Gene Therapy → Exempted
- CGST 3/2025: Food for free distribution to weaker sections → Conditional 5% GST
- CGST 4/2025: Sale of used EVs → 18% GST (marginal value basis)
- CGST 5/2025: New definition for ‘Specified Premises’ in hotels > ₹7,500/unit/day
- CGST 6/2025: NSDC-approved skill training partners → Exempted; Motor Vehicle Accident Fund insurance → Exempted
- CGST 7/2025: Reverse Charge Mechanism (RCM) limited to individuals/unincorporated entities
- CGST 8/2025: ‘Specified premises’ definition updated
Recommended Rate Changes (Summary):
Goods/Services HSN/SAC Current Rate New Rate Fortified Rice Kernels 1904 18% 5% Gene Therapy – Taxable Exempted Food for weaker sections – Higher Rate 5% ACC Blocks (>50% fly ash) 6815 5% 12% Black Pepper/Raisins (Agriculturist) 0904 5% No GST Approved NSDC Training Partners 9992 18% Exempted Used EVs (Individuals) – Higher Rate 5% Used EVs (Business Refurbished) – 12% 18% (on profit) LRSAM Software Sub-systems 9023 Taxable Exempted Bank/NBFC Penal Charges – Taxable Exempted -
Common GST Rates by Goods/Services
Nil or 0% GST: Fresh milk, pasteurised milk, rice (unlabelled), fresh meat, eggs, curd, paneer (unpackaged), fresh fruits & vegetables, natural honey (unbranded)
5% GST: Sugar, tea, baby milk food, Indian sweets, hearing aids, economy-class flight & railway tickets, radio/app-based taxis
12% GST: Computers, mobile phones, packaged ghee, business-class flight tickets, fruit juices, preserved fruits/vegetables
18% GST: Mineral water, pasta, toothpaste, cornflakes, life & health insurance, computer monitors, personal care items
28% GST: Luxury cars, ACs, dishwashers, cigarettes, caffeinated beverages, high-end motorcycles, portland/slags/aluminous cement
GST Cess:
- Cigarettes & tobacco: up to 204%
- Aerated water, motor vehicles, petrol: 1–22%
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GST Rates under Composition Scheme
Turnover limit: ₹1.5 Crores
Business Type CGST SGST Total Manufacturing & Traders 0.5% 0.5% 1% Restaurants (no alcohol) 2.5% 2.5% 5% Service Providers 3% 3% 6% -
GST Tax Rates on Common Items
Goods
- 0%: Milk, unbranded atta/maida, eggs, curd, lassi, fresh vegetables, natural honey, child drawing books, prasad
- 5%: Edible oil, sugar, tea, spices, packed paneer, milk powder, footwear ≤ ₹500, Indian sweets, life-saving drugs
- 12%: Computers, mobile phones, processed food items, fruit juices, packaged coconut water, almonds, butter & ghee
- 18%: Personal care items, industrial intermediates, ice creams, pasta, cornflakes, soups
- 28%: Small cars, ACs, refrigerators, luxury cars, cigarettes, aerated drinks (+15% cess), high-end motorcycles (+15% cess)
Services
- 0%: Education, health services
- 5%: Railways, AC contract or radio taxis, air travel for pilgrimage, tour operator services, printing of newspapers
- 12%: Air travel excluding economy, restaurant food without AC/liquor, renting accommodation ₹1,000–₹2,500/day
- 18%: Restaurant food with AC/liquor, outdoor catering, renting ₹2,500–₹5,000/day, movie tickets > ₹100
- 28%: Amusement parks, casinos, AC 5-star hotel food/drinks, 5-star hotel accommodation
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Exemptions under GST
Goods: Live animals, fresh/frozen meat, fish, milk, eggs, honey, fresh vegetables/fruits, grains, flour, seeds, tea, coffee, sugar, baked goods, fertilizers, electrical energy, drugs & pharmaceuticals, bindi/kajal, municipal waste, printed books/newspapers, fabrics, handicrafts
Services: Agricultural services, government services, transportation, judicial services, education, medical services, exhibition/tour services, GSTN services, admission fees to small events
Tax Pal Solutions can assist with GST registration, GST return filing, and compliance to ensure your business stays fully GST-compliant.
