GST Rates

GST rates in India vary based on the type of product, service, or industry. Different items attract different tax slabs like 0%, 5%, 12%, 18%, or 28%, depending on their usage, category, and classification. To make it easier for you, we’ve created a detailed list of GST rates for various goods and services across sectors. Whether you’re a business owner, trader, or consumer, you can explore the correct GST rate for your specific item here and stay compliant with the latest tax structure.

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    What is the GST Rate?

    GST rate refers to the tax percentages that are applied to goods and services under the Goods and Services Tax (GST) law in India. These rates determine how much tax a person or business has to pay when selling or buying something.

    There are five main GST slabs:

    • 0% – No tax (used for essential items like fresh vegetables, milk, and education services)
    • 5% – Low tax for essential or common use products (like tea, sugar, clothes under ₹1000)
    • 12% – Mid-range tax (like packed foods, mobile phones)
    • 18% – Standard rate (like services, electronic items)
    • 28% – Luxury or sin goods (like cars, cigarettes, air conditioners)

    Some products, like alcohol and petroleum are not covered under GST and follow old tax systems by states.

    How Does the GST Rate Work?

    Let’s keep it simple. Imagine you buy a fridge that costs ₹10,000 and it falls under the 18% GST slab. Here’s what happens:

    • The seller adds ₹1,800 (18% of ₹10,000) as GST.
    • You pay ₹11,800 total.
    • The seller collects the tax and sends it to the government.

    GST is divided into 3 parts depending on where the sale happens:

    • CGST (Central GST): Goes to the Central Government
    • SGST (State GST): Goes to the State Government
    • IGST (Integrated GST): Used for interstate sales and goes to the Centre, then shared with states

    This system helps avoid double taxation and keeps things transparent.

    Why is GST Important?

    GST is important because it:

    • Combining many taxes into one – Replacing VAT, excise, service tax, and other taxes.
    • Makes tax calculation easier – One nation, one tax
    • Promotes transparency – Everything is recorded online
    • Reduces the tax burden – Businesses can claim input tax credits for GST paid on inputs
    • Improves compliance – It’s easier for businesses to file returns

    For common people, it clarifies what tax is paid on products and helps them make better decisions when buying.

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