What are the correct GST slabs of goods and services in India?

Goods and services in India are categorised under different GST slabs. The GST slab for essential items is 0%, 12% for standard goods, 18% for most consumer products and 28% for luxury items.

What is the GST rate for gold in India?

The GST rate for gold in India is 3%. This rate is implied for selling gold as jewellery. Additionally, a 5% GST on making charges of jewellery is applied in India. The GST implementation ensures a uniform tax on gold across India.

Do I need to pay GST if I stay at a hotel?

Yes, you have to pay a set GST amount once you have checked in at a hotel and consumed their services. Hotel authorities add a GST amount ranging between 12% and 18% with the actual tariff per night.

GST Rates in India 2025: Updated Slabs, List of Items & Changes

As of 2025, the GST rates in India are divided into five categories, like, 0% (nil), 5%, 12%, 18% and 28%. These rates play a crucial role for both businesses and individuals, making it essential to stay informed about the latest updates.

Since the inception of the GST structure, the GST Council has revised the GST rates of the products several times. This article provides a comprehensive overview of the updated GST rates for 2025.

What is the Meaning of GST Rates?

GST rates refer to the percentage of tax applied to the taxable value of goods and services. Every GST-registered business generates invoices that include the applicable GST amount, which is calculated based on the prescribed tax rate.

For example, if a business sells goods worth ₹15,000 and the total payable amount, including GST, is ₹17,700, the applicable GST rate is 18%.

New GST Rates List in India

Following are the changes and the new announcement by the government regarding GST rates in India:

Newly Announced GST Rates: In the below table, you will find the newly announced GST rates:

Products	New Rate	Old Rate
Uniform IGST for all imports of toolkits for aircraft	5%	Nil
A uniform GST rate for all kinds of milk can	12%	Nil
Any kind of solar cooker	12%	5%
Carbon cases and boxes	12%	18%
A uniform GST rate for all kinds of sprinklers	12%	Nil
Rate on the waiting or retiring room of Indian Railways	Exempted	Nil
GST on platform tickets of Indian Railways	Exempted	Nil
Indian Railways cloakroom services GST rate	Exempted	Nil
Battery-operated car services of Indian Railways	Exempted	Nil
Hostel accommodation under specific conditions	Exempted	Nil

Changes in GST Rates: The recent changes in the GST rates in India are mentioned below:

Product or Services	New Rate	Old Rate
GST rates of metal ores and concentrates	18%	5%
GST on specific renewable energy devices	12%	5%
Railway parts and goods under Chapter number 86	18%	12%
Pens	18%	12%
Broadcasting, licensing and sound recording	18%	12%
Recorded media, print and reproduction	18%	12%
Packing boxes and containers	18%	12%
Printed materials	18%	12%
Polyurethanes and scraps	18%	5%

Other Kinds of Applicable GST Rates and Structure

In addition to the standard GST rates ranging from 0% to 28% for regular taxpayers, there are other lesser-known rates in India, such as 0.25% and 3%.

Composition scheme taxpayers are subject to a nominal GST rate of 1.5%, 5%, or 6% on their turnover. Additionally, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) under GST are levied at 2% and 0.5%, respectively.

Moreover, certain products, including aerated water, petrol, and tobacco, attract an additional cess alongside GST.

Items with a 0% GST Rate in India (2025)

The government has exempted several essential goods and services from GST. Below is a horizontal layout, grouped by categories:

🥛 Dairy Products: Milk, Curd, Lassi, Unpacked Paneer

🥚 Food Items: Eggs, Unpacked Foodgrains, Natural Honey (Unbranded), Palmyra Jaggery, Gur, Salt, Unbranded Atta and Maida, Besan (Gram Flour)

🎒 Education & Children's Essentials: Health and Education Services, Colouring and Drawing Books for Children

🧹 Household Items: Phool Bhari Jhadoo (Traditional Broomsticks)Items With a 5% GST Rate

List of Items with 5% GST Rate in India (2025)

🍵 Food & Beverages: Tea, Sugar, Unpacked Paneer, Cashew Nuts, Roasted Coffee Beans, Raisins, Edible Oils, Coffee (except instant), Mishti/Mithai, Milk Food for Babies, Skimmed Milk Powder

👗 Apparel & Footwear: Footwear (below ₹500), Apparel (below ₹1,000)

🏠 Household Essentials: Fabric, Coir Mats, Floor-covering Spices, Agarbatti

🩺 Healthcare: Life-saving Drugs

🔥 Fuel & Energy: PDS Kerosene, Domestic LPG

List of Items with 12% GST Rate in India (2025)

The 12% GST slab applies to processed food products, daily-use items, and select consumer goods. Here's the categorized list:

🧈 Food & Beverages: Butter, Ghee, Processed Food, Almonds, Preparations of Vegetables, Nuts, Fruits or Other Parts, Packed Coconut Water, Fruit Juice

📱 Consumer Goods: Mobiles

☂️ Miscellaneous Items: Umbrella

Items With an 18% GST Rate

In 2025, consumables and services that come with 18% added GST are:

Hair oils, soap, toothpaste and toiletries.
Industrial intermediaries, printers and computers
Ice cream, Pasta, cornflakes and soups

Products With 28% GST in India

Luxury items commonly come with 28% added GST rates in India and these include:

Small cars (with cess of +1% to 3%) and high-end motorcycles (with +15% cess).
Different consumer durables like refrigerators and Air conditioners.
Luxury vehicles from manufacturers like BMW, Mercedes and more
Cigarettes (excluding Beedis) and aerated drinks have +15% cess.

List of Items with 0.25% and 3% GST Rate in India (2025)

These GST rates apply primarily to precious metals, gems, and related items. The lower rates are aimed at promoting trade and keeping luxury tax consistent.

💍 Items with 3% GST Rate:
Articles with a Metal Clad of Precious Materials,
Cultured or Natural Pearls (not worked or graded),
Imitation Jewellery,
Diamonds (worked but not set or mounted, excluding non-industrial),
Gold and Silver,
Scrap or Waste of Precious Metals

💠 Items with 0.25% GST Rate:
Diamonds (Non-Industrial),
Unworked Semi-Precious or Precious Stones

🔻 Decrease in GST Rates in India (2025)

The GST Council has announced a reduction in GST rates for the following essential products and services:

Product Category	New GST Rate	Old GST Rate
Vehicles equipped with retrofitting kits for the differently abled	5%	As per applicability
Levied IGST on goods sold at the India-Bangladesh border	NIL	As per applicability
Keytruda (Cancer Medicine)	5%	12%

HSN & SAC for GST Classification in India

The Harmonized System of Nomenclature (HSN) and Service Accounting Code (SAC) are two standardized coding systems used to classify goods and services under GST. The classifications are structured as follows:

HSN Classification- Established by WCO (World Customs Organisation), India adopted HSN in 1986 to name and number traded items in the following way:

HSN consists of 21 sections, 1244 headings, 5224 subheadings and 99 chapters.
Each HSN code consists of 6 digits, with an option to add 2 extra digits for domestic classification.
The first two digits represent the chapter number.
The next two digits indicate the heading number.
The following two digits define the subheading number.
Any additional two digits further specify the sub-classification.
HSN assists in easy classification, identification and description of goods across regions.
Incorrect HSN codes can lead to tax miscalculations, denied tax credits, and penalties.

SAC Classification- The Service Accounting Code (SAC) is a classification system specifically for services under the GST rates in India:

Comprises 99 sections, each with a unique numbering structure.
The first two digits represent the section number.
The next two digits indicate the chapter number.
The following two digits define the heading number.
The last two digits specify the subheading number.
SAC helps standardize, simplify, and streamline service taxation.
It also determines the applicable tax rates for services, making it essential for businesses and tax authorities to use the correct, updated codes.

Final Word

GST rates in India vary across different product and service categories, with periodic revisions by the GST Council. The latest GST rate list updates reflect changes in taxation across various sectors. By simplifying the tax structure and ensuring uniformity, GST has played a crucial role in boosting the Indian economy and streamlining the overall tax system.