GST Rates in India (2025): Find the Latest Tax Rates Slabs & Updates

Stay updated with the latest GST rates for 2025. Find revised tax slabs, exemptions, and industry-wise GST changes for goods & services in India.

GST rates in India for 2025 continue to be categorized into 0%, 5%, 12%, 18%, and 28% tax slabs. Essential items like fresh fruits, vegetables, milk, and unbranded food products remain exempt under the 0% GST rate, ensuring affordability for consumers.

Several industries have seen GST rate revisions, with railway goods, pens, and metal concentrates increasing from 5% or 12% to 18%. Conversely, some savory food items and namkeens have experienced a rate reduction from 18% to 12%, benefiting the food sector.

The GST Council’s decisions aim to streamline tax structures and address industry-specific concerns. Businesses must stay updated on these tax changes to ensure compliance, optimize Input Tax Credit (ITC) claims, and manage financial planning effectively under the latest GST framework.

In this blog, we will explore the updated GST rates for 2025, their impact on industries, and key changes in tax slabs. We will also discuss how businesses and consumers can navigate these changes for better compliance and financial management.

Comparison of Old vs. New GST Rates

The GST rates in India for 2025 are categorised into different slabs based on the nature of goods and services. Below is a summary of the new GST rates for specific goods and services:

Category	Old GST Rate	New GST Rate
Railways Goods and Parts under Chapter 86	12%	18%
Pens	12%	18%
Metal Concentrates and Ores	5%	18%
Certain Renewable Energy Devices	5%	12%
Recorded Media Reproduction and Print	12%	18%
Broadcasting, Sound Recordings, and Licensing	12%	18%
Printed Material	12%	18%
Packing Containers and Boxes	12%	18%
Scrap and Polyurethanes	5%	18%
Namkeens & Extruded/Expanded Savory Food	18%	12%
Certain Cancer Drugs	12%	5%
Car & Motorcycle Seats	18%	28%

Zero Rated Supplies Under GST

• 0% GST Rate Goods

Below is a list of essential goods that are exempt from GST, ensuring affordability for consumers:

List of Goods	HSN Code	GST Rate
Milk	401	0%
Eggs	407	0%
Unpacked Rice	1006	0%
Unpacked Curd	403	0%
Fresh Vegetables	0701 to 0714	0%
Fresh Fruits	0803 to 0810	0%
Unbranded Atta (Flour)	1101 to 1106	0%
Sanitary Napkins	961900	0%

• 0% GST Rate Services

The following services are exempt from GST, promoting accessibility and affordability in essential sectors:

List of Services	HSN Code	GST Rate
Educational Services by Charitable Trusts	9992 or 9963	0%
Health Care Services	9993	0%
Public Transport (Non-AC)	9964	0%
Services by Religious Trusts	–	0%

5 % GST Items

• 5 % GST Rate Goods

The following goods attract a 5% GST rate, making them more affordable while still contributing to tax revenues:

List of Goods	HSN Code	GST Rate
UHT Milk	401	5%
Yoghurt	403	5%
Coal	2701	5%
Edible Oils	1507 to 1518	5%
Cashew Nuts	0801, 0802, 0813	5%
Raisins	806	5%

• 5 % GST Rate Services

List of Services	HSN Code	GST Rate
Restaurant Services	9963	5%
Housekeeping Services	9954	5%
Printing of Newspapers, Books	9988	5%

GST 12 Percent Items List

• 12% GST Rate Goods 

Below is the list of goods that attract a 12% GST rate, including essential dairy products and construction materials:

List of Goods	HSN Code	GST Rate
Condensed Milk	0402 91 10, 0402 99 20	12%
Butter	405	12%
Cheese	406	12%
Marble and Granite Blocks	2515, 1210, 2516	12%

• 12% GST Rate Services 

Below is the list of services taxed at 12% GST, covering construction, hospitality, and air travel:

List of Services	HSN Code	GST Rate
Construction of Apartments	9954	12%
Hotel Accommodation	9963	12%
Transport of Passengers by Air	9964	12%

18 Percent GST Items List

• 18% GST Rate Goods 

Below is the list of goods taxed at 18% GST, including mobile phones, chocolates, and non-alcoholic beverages:

List of Goods	HSN Code	GST Rate
Mobile Phones	8517	18%
Chocolate and Cocoa Products	1804 to 1806	18%
Non-Alcoholic Beverages	2202 91 00, 2202 99 90	18%
Perfumes and Toilet Waters	3303	18%

• 18% GST Rate Services 

Below is the list of services taxed at 18% GST, including construction of commercial apartments, rental services of transport vehicles, and distribution services for electricity, gas, and water:

List of Services	HSN Code	GST Rate
Construction of Commercial Apartments	9954	18%
Rental Services of Transport Vehicles	9966	18%
Electricity, Gas, Water, and Other Distribution Services	9969	18%

Items With 28% GST

28% GST Rates Goods and Services

• 28% GST Rate Goods

The following goods attract a 28% GST rate, reflecting their classification as luxury or sin goods under the GST framework: 

List of Goods	HSN Code	GST Rate
Carbonated Beverages	2202	28%
Tobacco or Tobacco Substitutes	2402	28%
Air-conditioning Machines	8415	28%
Motor Vehicles	8701 to 8704	28%

• 28% GST Rate Services

List of Services	HSN Code	GST Rate
Services Provided by Casinos and Race Clubs	9954	28%
Gambling	9963	28%

GST Rates on Various Goods and Services

Below is a categorized list of GST rates for various products and services in India:

GST on Gold	GST on Labour Charges	GST on Advertisments
GST on Clothes	GST on Furniture	GST on Hotel Rooms
GST on Medicines	GST on Electronics	GST on Flat Purchase
GST on Laptops	GST on Television	GST on Steel
GST on Books and Newspaper	GST on Food	GST on Commercial Vehicles

Additional Components of GST in India

Cess Under GST

Apart from the standard GST rates, certain goods attract an additional cess, primarily to discourage consumption and generate revenue for specific government initiatives. This cess is levied over and above the applicable GST rate and is typically imposed on goods that are considered luxury items or harmful to health.

Goods That Attract GST Cess

Some of the key products subject to GST cess include:

• Cigarettes and Tobacco Products – To discourage consumption due to health risks.
• Luxury Cars – To generate additional revenue from high-end goods.
• Aerated Drinks – Due to their classification as non-essential and potentially unhealthy products.
• Coal – To fund environmental initiatives and sustainable energy projects.

The revenue generated from GST cess is allocated for specific purposes, such as compensating states for revenue losses under the GST regime.

TDS and TCS Under GST

The Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) mechanisms help ensure compliance and improve tax collection efficiency under GST.

• TDS Under GST

  • Applicable to government departments and notified entities making payments to suppliers of taxable goods and services.
  • A 1% deduction (0.5% CGST + 0.5% SGST or 1% IGST) is made on payments exceeding ₹2.5 lakh.
  • Helps track transactions and prevent tax evasion.

• TCS Under GST

  • Applicable to e-commerce operators who collect tax from suppliers selling goods/services on their platform.
  • A 1% TCS (0.5% CGST + 0.5% SGST or 1% IGST) is collected on the transaction value.
  • Ensures accurate tax reporting and compliance for online businesses.

HSN and SAC Code System in GST

To ensure uniform classification of goods and services for taxation, India follows the HSN (Harmonized System Nomenclature) code for goods and the SAC (Services Accounting Code) system for services.

• HSN Code for Goods

  • Developed by the World Customs Organization (WCO), it is an internationally recognized system.
  • Categorizes goods into different sections and sub-sections for trade and taxation purposes.
  • Determines the applicable GST rate (0% to 28%) for specific products.
  • Businesses with an annual turnover above ₹5 crore must use a 6-digit HSN code, while those below ₹5 crore can use a 4-digit HSN code.

• SAC Code for Services

  • Developed by India’s Service Tax Department for classifying services under GST.
  • Ensures consistency in tax rates for various service categories.
  • Like HSN codes, SAC codes determine the applicable GST rates, ensuring uniform tax treatment across services.

What Are the GST Rate Revisions Announced at the 55th GST Council Meeting?

At the 55th GST Council meeting, several items and services underwent GST rate revisions. Key changes include:

• Rice Kernels: Revised GST rates applied.
• Gene Therapy: Changes in GST applicability for this advanced medical treatment.
• ACC Blocks: Adjusted GST rates for these construction materials.
• Bank/NBFC Penal Charges: GST revisions for penal charges on loan defaults.

How to Calculate GST on Goods and Services?

How Is GST Calculated on MRP?

To calculate GST on the Maximum Retail Price (MRP), simply replace the GST-inclusive price in the formula with the MRP. Ensure that the MRP includes the GST component before applying this method.

By understanding whether the price includes GST or not, you can easily calculate the correct tax amount and total price for any goods or services.

Why Are GST Rates Important?

Understanding GST rates helps businesses and consumers by:

• Ensuring correct tax calculation for transactions.
• Avoiding penalties due to incorrect GST application.
• Helping businesses claim Input Tax Credit (ITC) efficiently.
• Providing clarity in pricing across different sectors.

Conclusion on GST Rates

GST rates in India for 2025 continue to be structured into 0%, 5%, 12%, 18%, and 28% slabs, impacting various industries. While essential goods like fresh fruits, milk, and vegetables remain tax-free, items like railway goods, pens, and metal concentrates have seen rate increases to 18%.

The food and hospitality sectors have benefited from GST reductions, with savory snacks and namkeens moving from 18% to 12%. These revisions aim to simplify taxation, ensure fair pricing, and optimize Input Tax Credit (ITC) for businesses under the updated GST framework.

Staying informed about GST rate changes helps businesses ensure compliance, manage tax liabilities, and maximize tax benefits. Understanding these revisions allows consumers to make cost-effective purchases while enabling businesses to adjust pricing strategies and remain competitive in a dynamic tax environment.

For businesses, staying informed about GST regulations is essential for seamless operations. Professional GST registration services can help the complexities of compliance and optimise your tax planning.

FAQs on GST Rates in India

What are the GST rates in India for 2025?

India's GST structure in 2025 includes rates of 0%, 5%, 12%, 18%, and 28%, applied based on the nature of goods and services.

Which items are exempt from GST in India?

Essential items like fresh fruits, vegetables, and educational services are exempt, attracting a 0% GST rate.

What is the GST rate for mobile phones in India?

Mobile phones fall under the 12% GST slab in 2025.

Are there any luxury items that are taxed at the highest GST rate?

Luxury items such as automobiles and cigarettes attract a 28% GST rate.

What recent changes were made to the GST rates by the GST Council in 2025?

Recent changes include reductions and increases in GST rates for specific items like fortified rice kernels and railway goods.

What is the impact of GST on household essentials?

Household essentials like sugar and tea attract a 5% GST rate.

How does the GST rate for educational services work in 2025?

Educational services are exempt from GST, maintaining a 0% rate in 2025.

What are the GST implications for healthcare products in 2025?

Healthcare products like life-saving drugs are taxed at a reduced 5% GST rate.

Where can I find the complete list of goods and services with their respective GST rates?

The official GST portal at cbic-gst.gov.in provides a complete list of GST rates.

What is the GST rate for gold in India?

The GST rate for gold jewelry is 3%, while diamonds attract 1.5% GST.

Is GST applicable on electric vehicles?

Yes, electric vehicles are taxed at a reduced GST rate of 18%, lower than conventional fuel vehicles.