GST resources
GST Rates: The Current Slabs with Shop Examples
Since 22 September 2025 most goods and services sit in two slabs, 5% and 18%, with nil for essentials and 40% for a short list of luxury and sin goods. Here is what that means for the items on your shelf.
The slabs today
| Rate | What it covers |
|---|---|
| Nil | Unprocessed food, fresh fruit and vegetables, milk including UHT milk, packaged paneer, Indian breads, exercise books, pencils and erasers |
| 5% | Most packaged food, household essentials, most medicines and medical devices, clothes and footwear up to ₹2,500, restaurant service |
| 18% | The standard rate: electronics and appliances, cement, most other manufactured goods and most services |
| 40% | Aerated drinks, pan masala, tobacco products, high-end cars and similar luxury and sin goods |
A few goods such as gold, silver and precious stones have their own special rates. Always check the rate for the exact HSN code.
What changed in September 2025
The GST Council, at its 56th meeting on 3 September 2025, replaced the four main slabs of 5%, 12%, 18% and 28% with two main slabs of 5% and 18%, plus a special 40% rate. The new rates came into force on 22 September 2025 through Notification No. 9/2025-Central Tax (Rate). Most items that were at 12% moved to 5%, and most items at 28% moved to 18%.
Tobacco and pan masala moved to the 40% rate from 1 February 2026, when the GST compensation cess on them ended. At its 57th meeting in October 2026 the Council made no rate changes and said rate decisions will in future be taken once a year, taking effect from the start of the next financial year.
Rates for common shop items
| Item | Before 22 Sep 2025 | Now |
|---|---|---|
| Biscuits, cakes, pastry | 18% | 5% |
| Namkeen, bhujia, mixture | 12% | 5% |
| Chocolates | 18% | 5% |
| Ice cream | 18% | 5% |
| Jams, fruit juices, pasta | 12% | 5% |
| UHT milk | 5% | Nil |
| Soap, shampoo, toothpaste, toothbrush | 18% or 12% | 5% |
| Most medicines | 12% | 5% (36 life-saving drugs nil) |
| Clothes and footwear up to ₹2,500 a piece or pair | 5% or 12% | 5% |
| Clothes and footwear above ₹2,500 | 12% or 18% | 18% |
| Mobile phones | 18% | 18% |
| TVs, air conditioners, cement | 28% | 18% |
| Aerated drinks | 28% plus cess | 40% |
Summary of the official announcements; rates depend on the exact description and HSN code in the notification.
Worked example: one bill, two rates
Sri Lakshmi Stores in Mysuru sells a customer a packet of biscuits for ₹100 and a ₹200 shampoo bottle (both prices before tax) and a ₹500 bag of loose rice, which is nil-rated. Both taxed items are now at 5%, so the bill shows a taxable value of ₹300, CGST 2.5% of ₹7.50 and SGST 2.5% of ₹7.50, plus ₹500 of nil-rated rice. The total is ₹815.
Before 22 September 2025 the same shampoo was at 18% and biscuits at 18%, so the tax on ₹300 would have been ₹54 instead of ₹15. If that customer returns a shampoo bought in August 2025, the credit note must reverse tax at the old 18%, because the original invoice charged 18%.
Common mistakes after a rate change
- Leaving old rates on items in the billing software
- Pricing an MRP item without recalculating the tax inside it
- Issuing credit notes for old invoices at the new rate
- Charging 5% on a garment priced above ₹2,500 after discount, or 18% on one priced at or below it — the value per piece decides
- Applying the restaurant 5% rate to packaged goods sold over the counter
How rates show up on invoices and returns
Each invoice line shows the rate and the tax amount, split into CGST and SGST for sales within the state or shown as IGST for sales to another state. GSTR-1 reports B2C sales rate-wise and the HSN summary by rate, so wrong rates on the shelf turn into wrong figures in your return.
How TripleBill helps
Set the GST rate and HSN code on each item once; TripleBill applies it on every bill, splits CGST and SGST or charges IGST, and keeps old invoices at the rate they were issued with. The GST calculator works without an account.
This page is general information about GST in India, not tax advice. Rates, thresholds and rules change; confirm with the GST portal or a chartered accountant before acting.
Last reviewed and sources
Last reviewed: November 2026. Facts on this page were checked against:
- Notification No. 9/2025-Central Tax (Rate), 17 September 2025, effective 22 September 2025
- PIB release on the 56th GST Council recommendations (3 September 2025) and Ministry of Food Processing Industries release, 8 September 2025
- Government notifications ending compensation cess on tobacco and pan masala from 1 February 2026
- GST Council, 57th meeting outcome (October 2026)
Frequently asked questions
What are the GST slabs now?
Nil, 5%, 18% and 40%, with a few special rates for items such as precious metals. The 12% and 28% slabs no longer apply to most goods.
Is GST on mobile phones still 18%?
Yes. Mobile phones stayed at 18% in the September 2025 changes.
What is the GST rate on clothes?
5% for clothes up to ₹2,500 per piece and 18% above ₹2,500 per piece. Footwear follows the same ₹2,500 per pair test.
Do I charge the new rate on an invoice dated before 22 September 2025?
No. The rate in force when the supply was made applies. Returns and credit notes for old invoices use the old rate.
Is there still compensation cess?
The compensation cess on tobacco and pan masala ended on 1 February 2026, when those goods moved to the 40% rate with separate duties outside GST. Check the current position for any other item before billing cess.
Where do I find the rate for my item?
Find the item's HSN code, then look it up in the rate schedules notified by CBIC or the GST portal's HSN search. Your supplier's invoice is a good starting point.
Will the rates change again soon?
The GST Council said in October 2026 that rate changes will be considered once a year and take effect from the start of the next financial year. Check before 1 April each year.
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