Types of GST percentage
Types of GST Percentage in India (GST Slabs Explained)
GST in India is divided into different tax slabs based on the type of goods and services. The main GST rates are 0%, 5%, 12%, 18%, and 28%. Apart from these, there are special rates like 0.25% and 3% for items such as diamonds and gold.
The idea is simple. Essential items are either not taxed or taxed at a lower rate, while luxury or non-essential items are taxed at a higher rate.
Key Highlights
- India has 5 main GST percentage slabs
- 18% is the most commonly applied GST rate
- Essential goods fall under 0% or 5%
- Luxury goods attract 28% + cess
- Special rates apply to gold (3%) and diamonds (0.25%)
In this post, we will go through all the types of GST percentages in India, along with examples of items under each slab and how you can check the correct GST rate using HSN codes.
Let’s look at these sections in detail:Â
What are the Types of GST Percentage?
GST percentages in India are the different tax rates charged on goods and services under the GST system. These rates are divided into slabs depending on the type of product, like essential items, regular-use goods, or luxury items.
The main GST slabs are 0%, 5%, 12%, 18%, and 28%. Apart from these, there are special rates such as 0.25% and 3% for items like diamonds and gold.
The idea is simple. Everyday essentials are either tax-free or taxed at a lower rate, while luxury and non-essential items are taxed at higher rates.
List of GST Slabs
| GST Slab | Tax Rate | Category |
| Nil | 0% | Essential goods |
| Low | 5% | Daily-use items |
| Standard | 12% | Processed goods |
| Standard | 18% | Most goods & services |
| High | 28% | Luxury & sin goods |
| Special | 3% | Gold, jewellery |
| Special | 0.25% | Diamonds |
GST Rate Structure in India
1. Standard GST Slabs
These are the most commonly used GST percentages:
- 0% (Nil GST): No tax on essential items
- 5% GST: Basic consumption goods
- 12% GST: Processed and semi-essential goods
- 18% GST: Majority of goods and services
- 28% GST: Luxury and sin goods
2. Special GST Rates
Certain items fall outside the standard slabs:
- 3% GST: Gold, silver, jewellery
- 0.25% GST: Rough diamonds and precious stones
3. GST Cess
GST cess is an additional tax applied on specific items like:
- Tobacco
- Cigarettes
- Aerated drinks
- Luxury cars
 Cess ranges from 1% to 204%, depending on the item.
GST Slab-wise Item List
0% GST Items:
| Products | Tax Rates |
| Fresh milk & cream | 0% |
| Curd, lassi, buttermilk | 0% |
| Chena / Paneer | 0% |
| Eggs | 0% |
| Natural honey (unbranded too) | 0% |
| All fruits & vegetables | 0% |
| Dates & nuts | 0% |
| Coffee beans | 0% |
| Unprocessed green tea leaves | 0% |
| Rice, wheat, maize, and other grains | 0% |
| Jaggery, khandsari sugar, rab | 0% |
| Firewood (fuel wood)Â | 0% |
| Handloom items | 0% |
| Handmade musical instruments (indigenous) | 0% |
| Puja samagri | 0% |
| Besan | 0% |
| Children’s colouring & drawing books | 0% |
| Educational services | 0% |
5% GST Items:
| Products | Tax Rates |
| Sugar | 5% |
| Tea | 5% |
| Packed Paneer | 5% |
| Coal | 5% |
| Edible Oils | 5% |
| Raisin | 5% |
| Domestic LPG | 5% |
| Roasted Coffee Beans | 5% |
| PDS Kerosene | 5% |
| Skimmed Milk Powder | 5% |
| Footwear (< Rs.500) | 5% |
| Milk Food for Babies | 5% |
| Apparels (< Rs.1000) | 5% |
| Fabric | 5% |
| Coir Mats, Matting & Floor Covering | 5% |
| Spices | 5% |
| Agarbatti | 5% |
| Coal | 5% |
| Mishti/Mithai (Indian Sweets) | 5% |
| Life-saving drugs | 5% |
| Coffee (except instant) | 5% |
12% GST Items:
| Products | Tax Rates |
| Butter | 12% |
| Ghee | 12% |
| Computers | 12% |
| Processed food | 12% |
| Almonds | 12% |
| Mobiles | 12% |
| Fruit Juice | 12% |
| Preparations of Vegetables, Nuts Fruits, or other parts | 12% |
| Packed Coconut Water | 12% |
| Umbrella | 12% |
18% GST Items:
| Products | Tax Rates |
| Hair Oil | 18% |
| Capital goods | 18% |
| Toothpaste | 18% |
| Industrial Intermediaries | 18% |
| Soap | 18% |
| Ice-cream | 18% |
| Pasta | 18% |
| Toiletries | 18% |
| Corn Flakes | 18% |
| Soups | 18% |
| Computers | 18% |
| Printers | 18% |
28% GST Items:
| Products | Tax Rates |
| Small cars (+1% or 3% cess) | 28% |
| High-end motorcycles (+15% cess) | 28% |
| Consumer durables such as AC and fridge | 28% |
| Beedis are NOT included here | 28% |
| Luxury & sin items like BMWs, cigarettes | 28% |
| & aerated drinks (+15% cess) | 28% |
3% GST Items:
| Products | GST Rate |
| Imitation jewellery | 3% |
| Articles of precious metal or of metal clad with precious metal | 3% |
| Natural pearls or cultured pearls, whether or not worked or graded but not strung, mounted or set; or temporarily strung for convenience of transport | 3% |
| Diamonds, whether or not worked, but not mounted or set (Excludes non-industrial) | 3% |
| Precious stones (other than diamonds) and semi-precious stones | 3% |
| Silver | 3% |
| Gold | 3% |
| Waste and scrap of precious metal or of metal clad with precious metal | 3% |
0.25% GST Items:
| Products | GST Rate |
|---|---|
| Non-industrial diamonds | 0.25% |
| unworked precious/semi-precious stones | 0.25% |
Synthetic or reconstructed precious or semi-precious stones | 0.25% |
Composition Scheme GST Rates
Small businesses can choose the composition scheme and pay GST at a lower rate:
- 1% or 1.5% – Traders & manufacturers
- 5% – Restaurants
- 6% – Service providers
This scheme is easier to manage with fewer compliances, but you cannot claim input tax credit under it.
How to Check GST Percentage Using HSN Code
Follow these steps:
- First, clearly identify what product or service you are dealing with
- Then, check its HSN code for goods or SAC code for services
- After that, look up the GST rate linked to that code
- If you are unsure, you can use a GST rate finder tool to quickly check it
This is usually how most people figure out the correct GST percentage.
How GST Percentage Applies in Real Life
If you purchase a refrigerator:
- Price = ₹30,000
- GST Rate = 28%
- GST Amount = ₹8,400
Total Cost = ₹38,400
Conclusion
- GST in India is divided into different tax slabs
- 18% is the most commonly used GST rate
- Essential items are taxed less, while luxury items are taxed more
- Gold and diamonds have separate special GST rates
- GST rates are decided based on HSN or SAC codes
GST has made the tax system simpler by bringing different taxes under one system. Once you understand the GST rates and where they apply, it becomes easier to handle pricing, billing and compliance.
Whether you run a business or just want to understand your expenses better, knowing which GST slab applies to different goods and services can help you make more informed decisions.
That brings us to the end of this post. If you have any questions or thoughts, feel free to share them in the comments below. We will be happy to help.
FAQs
1.What are the different GST percentage slabs in India?
GST in India is divided into slabs of 0%, 5%, 12%, 18%, and 28%. Apart from these, there are special rates like 3% for gold and 0.25% for diamonds.
2.Which GST percentage is most commonly used?
The 18% slab is the most commonly used. Most goods and services fall under this category.
3.What is the GST rate for services in India?
In most cases, services are taxed at 18%. Only a few services come under lower or higher rates.
4.Are essential goods taxed under GST?
Basic items like fresh food are either not taxed at all or taxed at a lower rate of 5%.
5.What is the GST rate for gold?
Gold and jewellery are taxed at 3% GST.
6.What is the highest GST percentage in India?
The highest GST rate is 28%. Some items like cigarettes and luxury cars also have extra cess on top of this.
7.How do I find the GST percentage for a product?
You can check the GST rate by finding the HSN code of the product and referring to the GST rate list.
8.What is the difference between GST slabs and GST types?
GST slabs are the different tax rates. GST types are CGST, SGST, and IGST, which show how the tax is divided between central and state governments.
9. What is the GST rate on TV sets?
Currently, the GST charged on television sets is 18% for TVs up to 32 inches. The GST imposed on TVs larger than 32 inches is 28%.
10. What is the GST rate for mobile phones?
Mobile phones are charged at 18% GST under HSN Code 85171219. This applies to both smartphones and basic phones, which cost slightly more. The GST rate was previously 12%, but was raised to improve revenue.
11. How much GST applies to vital commodities?
Essential products typically fall under the 0% or 5% GST brackets. Basic foods such as cereals, vegetables, and milk are either tax-free or taxed at a reduced rate. However, processed and packaged food products may be subject to higher GST rates.
