GST Rates for Various Goods and Services in India in 2025 – Categories, Rates, and Updates
Understanding GST slab rates is essential for entrepreneurs since they can influence the costs of products and services. The rates in India are regularly updated, which impacts the prices of different goods and services across the nation. In this article, we will examine the current situation. In 2025, you may utilize common goods and services. We provide a robust resource for obtaining the most recent GST rates for goods and services in India for 2025, along with HSN and SAC codes for more than 20,000 items.
Goods and Services Tax
GST, or Goods and Services Tax is an indirect tax applied to the provision of goods and services. Launched on July 1, 2017, Goods and Services Tax (GST) unified various indirect taxes in India, streamlining the tax structure. It was established by the Central Government during the 2017 Budget Session and received parliamentary approval on March 29, 2017. GST combined several taxes, including Central Excise Duty, Value Added Tax (VAT), and Entry Tax, and established different GST rates for different types of products and services.This all-encompassing tax is applied to the production, sale, and consumption of goods and services across the country. Both small and large businesses are required to acquire a GST Identification Number to register under the GST framework. For sales within the same state, Central GST and State GST are imposed, while Integrated GST applies to transactions between different states.
GST Rates in India
In India, the GST rates for 2025 represent the percentage of tax imposed on different goods and services provided within the country. The existing GST system in India includes four different types of GST:
- State Goods and Services Tax (SGST): SGST is imposed by each state and union territory on transactions taking place within their own areas. The SGST rate remains uniform throughout the state or union territory.
- Central Goods and Services Tax (CGST): CGST is levied by the Central Government on transactions that occur within a state. Similar to SGST, CGST has a consistent rate applied nationwide.
- Integrated Goods and Services Tax (IGST): IGST is applicable to transactions that involve the transfer of goods and services between states or union territories. It is computed as the total of CGST and SGST or UTGST. IGST provides a smooth tax process for inter-state transactions.
- Union Territory Goods and Services Tax (UTGST): UTGST functions similarly to SGST, but it is specifically implemented in union territories. In contrast to SGST and CGST, UTGST maintains a uniform rate throughout the union territory.
In summary, GST slab rates in India Include these four elements, each intended to regulate particular kinds of transactions and guarantee a uniform tax system across the country.
The Importance of GST Tiered Rates
In India, the Goods and Services Tax (GST) has simplified various indirect taxes by implementing a consistent GST rate throughout the country. There are several important benefits that highlight the significance of having uniform GST rates for goods and services across India:
- Elimination of Tax-on-Tax: The single-tax system of GST removes the complications associated with tax-on-tax, which could lower the total expenses of goods and services for consumers.
- Simplified Compliance: With the implementation of GST, multiple indirect taxes have been combined into one tax, simplifying the compliance process for both businesses and individuals.
- Increased Tax Collection: GST has the ability to enhance tax revenue, which can aid in the development and fortification of the nation’s economy.
- Addressing Tax Evasion and Corruption:The integrated GST system reduces the likelihood of tax fraud and corruption by fostering transparency and accountability.
- Supporting Small Enterprises:GST motivates small and unorganized businesses to comply with the tax regulations established by the Indian government, promoting a more structured business environment.
Overall, GST’s advantages bring advantages to both traders and service providers.
Updated GST Tax Rates for Goods in India
In India, the updated GST rates are organized into categories of 0% (nil rated), 5%, 12%, 18%, and 28%, which are the most prevalent rates. There are also infrequently utilized rates of 0.25% and 3% applied to specific products. The GST composition scheme offers slightly lower tax rates of 1.5%, 5%, or 6%. However, it is crucial to understand that the adjustments to GST rates occurring in 2025 are determined by the revenue generated by the GST-registered business, rather than the particular goods it supplies.
Common products in India that are subject to a nil or 0% GST rate.
In India, many everyday necessities are subject to a nil rate or 0% GST, helping to keep these essential items affordable. Below are some typical examples of products that fall under this category. 0% GST rate according to the updated GST slab rates in India:
- Unprocessed Milk and Pasteurized Milk
- Unlabeled or unpackaged rice
- Newly sourced meat (instead of pre-packaged) and eggs
- Fresh curd and paneer (not store-bought).
- Fresh Fruits and Vegetables
- Natural Honey (unbranded or unpackaged)
These exemptions are designed to improve the accessibility of essential items for the general public. Examples of Products in India with a 5% GST Rate In India, numerous common items are categorized under the 5% GST slab. Below are a few examples:
- Sugar and Tea
- Milk food items for babies
- Indian sweets
- Hearing aids
- Radio/App-based Taxis
- Economy-class airplane tickets and railway fares.
These goods are subject to a 5% GST rate as per revised GST slab rates in India , resulting in lower prices for consumers.
Common Goods subject to a 12% GST rate in India
Many common everyday items in India are subjected to a 12% GST rate . Here are some examples:
- Computers and Mobile phones
- Packaged Ghee
- Tickets for business class flights.
- Drinks made from fruit juices or fruit pulp.
- Canned or stored fruits and vegetables.
- Condensed Milk
These products are categorized under the 12% GST slab rate, which influences consumer prices.
Examples of products and services with an 18% tax.
Many goods and services in India are subject to a GST rate. 18% GST rate . Here are some examples:
- Mineral Water (either natural or synthetic)
- Pasta
- Life Insurance and Health Insurance
- Cornflakes
- Toothpaste
- Computer Monitors
These goods and services are classified within the 18% GST slab category based on the updated GST rates in India, which influences consumer prices.
Items in India that are subject to the highest GST rate of 28%.
Many luxury and high-end products in India are subject to the highest GST rate of 28% Along with this adjustment in the GST rate, a Compensation cess may be imposed on specific products like cigarettes and passenger vehicles. Below are examples of items that are categorized under the highest GST rate:
- Caffeinated Beverages
- Cigars and cigarettes (made from tobacco).
- Pan Masala
- Passenger Cars
- Portland, Slag, and Aluminous Cement
- Air Conditioners
- Dish Washing Machines
Kindly be aware that the list mentioned above contains examples of items that fall under the highest GST slab rate, but it is not complete. Now, let’s explore the GST on services in India for the year 2025.
Goods and Services Tax (GST) on Services in India for 2025
The GST council has established a four-tier tax framework for services, similar to that used for goods. The GST rates for these services are 5%, 12%, 18%, and 28%, and each rate has specific effects on consumers.Importantly, healthcare and educational services are not subject to GST. Below is an overview of GST on services in India as of 2025:
- 5% for services such as train travel and travel agencies.
- 12% for services, which encompass rail freight and air travel not classified as economy.
- 18% for services such as restaurants that serve alcohol and ticketed events.
- 28% for activities such as theme parks.
The GST on services structure in India for 2025 makes tax calculations easier for both businesses and consumers. Along with a modification in the GST rate, the slab rates for consultancy, professional, courier, education, and IT services have been standardized for greater clarity.
GST Slab Rates Summary
In the table below, we have summarized the GST rates for goods and services and organized the products according to their GST rates.
GST Slab Rates | ||
GST Rate | Products | |
0% | Milk, kajal, eggs, educational services, curd, lassi, health services, coloring books for children, unpackaged food grains, unbranded flour (atta/maida), unpackaged paneer, jaggery, gram flour (besan), unbranded natural honey, fresh vegetables, salt, offerings (prasad), palmyra jaggery, and flower-filled brooms. | |
5% | Sugar, packaged paneer, tea, coal, edible oils, raisins, domestic LPG, roasted coffee beans, kerosene from the Public Distribution System (PDS), skimmed milk powder, cashew nuts, footwear priced under Rs. 500, baby milk food, clothing priced under Rs. 1,000, fabric, coir mats, matting and floor coverings, spices, incense sticks, Indian sweets (mishti/mithai), essential medicines, and coffee (excluding instant varieties). | |
12% | Butter, ghee, processed foods, almonds, mobile phones, fruit juice, vegetable preparations, fruits, nuts, and various plant parts (such as pickles and murabba), chutneys, jams, jellies, packaged coconut water, and umbrellas. | |
18% | Hair oil, capital goods, toothpaste, industrial intermediaries, soap, ice cream, pasta, personal care products, corn flakes, soups, printers, and computers. | |
28% | Small cars will have an increase of 1% with an additional 3% cess, while high-end motorcycles will see a 15% cess. Consumer durables, such as air conditioners and refrigerators, along with luxury and indulgent items like BMWs, as well as cigarettes and carbonated beverages, will also incur a 15% cess. | |
3% | Imitation jewelry, items made from precious metals or metals coated with precious metals, natural or cultured pearls (whether unprocessed or graded), diamonds (excluding non-industrial types), precious stones (besides diamonds), semi-precious stones, silver, gold, and waste or scrap of precious metals. | |
0.25% | Non-industrial diamonds, unprocessed precious or semi-precious stones, and synthetic or reconstructed precious or semi-precious stones. |
How to Calculate GST Rates?
Calculating Goods and Services Tax (GST) in India is crucial for businesses to maintain compliance and make precise tax payments. The GST rates for goods and services are based on their selling price, which ultimately influences the amount consumers pay. Here’s a guide on how to calculate GST:
- Monthly GST Returns: Businesses must submit GST returns every month and remit the calculated GST amounts to the government. When determining GST, it is important to take into account different factors, such as exempt supplies and both eligible and ineligible items.Input Tax Credit (ITC) , and inter-state sales.
- Avoiding Interest Charges: Correctly calculating Goods and Services Tax (GST) rates is crucial to prevent penalties. Failing to pay the correct amount of GST can lead to an interest charge of 18% on the underpaid amount, making accurate GST calculations essential.
- Online GST Calculator: To make things easier, you can utilize an online GST calculator to determine your GST obligations. These calculators enable you to enter details like your current ledger balance, the month for filing returns, tax liability, and more.
- Timely Payment: Prompt payment of GST is essential to prevent legal repercussions. Companies that adhere to GST rules can safeguard themselves from incurring financial losses and penalties.
GST Calculation Formula
The amount for Goods and Services Tax is calculated by multiplying the original price by the current GST rate and then dividing the result by 100. Calculate the net price by adding the GST amount to the original price of the product or service. If a product or service is priced at Rs. 1000 and has a GST rate of 12%, the total price you would pay is 1000 + (1000 X 0.12) = 1120. By applying this formula, you can effortlessly calculate the GST tax amount for different transactions and guarantee precise tax compliance.
GST calculator
A GST calculator is a useful online tool that allows users to compute the Goods and Services Tax (GST) owed for a particular timeframe, such as a month or a quarter. It serves as an essential resource for various individuals, including consumers, producers, distributors, and companies, to accurately assess their GST obligations.
Discover the most recent GST rates for goods and services with us.
We offer valuable support in keeping you informed about the latest developments. In 2025, information will be readily available for a diverse array of products and services. You can easily find details on changes in GST rates, GST slab rates, HSN codes, and SAC codes for more than 20,000 items. The GST applied to goods and services is based on their specific HSN or SAC codes. We provide you with precise and up-to-date information to ensure seamless compliance. We provide complete support for all your needs.GST related requirements. Whether you need GST registration to begin, prompt GST return filing for compliance, or GST cancellation in certain situations, our knowledgeable team is ready to streamline the entire process for you