GST rates in India today
Since 22 September 2025 (“GST 2.0”, decided at the 56th GST Council meeting on 3 September 2025) most goods and services fall into two main slabs, 5% and 18%, with a special 40% rate for a short list of luxury and “sin” goods. The 12% and 28% slabs were removed. The 57th GST Council meeting on 8 October 2026 left the rates unchanged.
| Rate | Used for (examples) |
|---|---|
| 0% / exempt | Fresh milk, UHT milk, paneer, Indian breads (roti, paratha), individual life and health insurance, many life-saving drugs |
| 5% | Soap, toothpaste, shampoo, butter, ghee, namkeen, packaged food items, most medicines, many textiles |
| 18% | Most other goods and services: small cars, motorcycles up to 350 cc, ACs, TVs, cement, restaurants in hotels above the tariff limit, mobile phones, professional services |
| 40% | Mid-size and large cars, motorcycles above 350 cc, aerated and caffeinated drinks, yachts and private aircraft, pan masala and tobacco (tobacco keeps compensation cess until the cess loans are repaid) |
| 3% | Gold, silver, jewellery (making charges are taxed separately) |
| 0.25% | Rough (uncut) diamonds |
How the calculator works
Adding GST: GST = price × rate ÷ 100, and the bill is price + GST. ₹10,000 at 18% gives GST of ₹1,800 and a bill of ₹11,800.
Removing GST from a price that already includes it: price before GST = inclusive price × 100 ÷ (100 + rate). ₹11,800 at 18% gives ₹10,000 before GST, so the GST inside is ₹1,800. Do not simply take 18% off ₹11,800 — that gives the wrong answer (₹9,676).
CGST, SGST and IGST
For a sale within one state the GST is shared half and half between the Centre (CGST) and the state (SGST, or UTGST in a Union Territory). At 18% that is 9% + 9%. For a sale to another state, or an import, the whole 18% is charged as IGST. The buyer pays the same total either way.
FAQ
How do I calculate 18% GST on ₹10,000?
₹10,000 × 18 ÷ 100 = ₹1,800 GST, so the total is ₹11,800. Within one state that is ₹900 CGST + ₹900 SGST.
How do I remove GST from a GST-inclusive price?
Divide by (1 + rate). For ₹11,800 at 18%: ₹11,800 ÷ 1.18 = ₹10,000, so the GST included is ₹1,800.
What are the GST slabs in 2026?
0% (exempt), 5%, 18% and a special 40% rate, plus 3% for gold and silver and 0.25% for rough diamonds. The old 12% and 28% slabs ended on 22 September 2025.
Is GST on a car 18% or 40%?
Small cars (petrol up to 1,200 cc or diesel up to 1,500 cc, and under 4 metres long) pay 18%. Larger cars and SUVs pay 40%, with no extra compensation cess.
Sources (checked 5 November 2026): CBIC notification No. 9/2025-Central Tax (Rate) and related rate notifications, effective 22 September 2025; PIB release on the 56th GST Council meeting (3 September 2025); press briefing after the 57th GST Council meeting, New Delhi, 8 October 2026 (no rate changes, reported by Business Today and Upstox); CGST Act 2017 s.9 and IGST Act 2017 s.5.