Rates last checked: 10 October 2026. The GST Council's 56th meeting recommended a two-rate structure of 5% and 18%, plus a special 40% rate on a small set of goods and services. The changes took effect on 22 September 2025. Sources are listed at the end of this page.
Current GST slabs
| Rate | What it is |
|---|---|
| 0% | Nil-rated and exempt supplies |
| 5% | Merit rate |
| 18% | Standard rate |
| 40% | Special de-merit rate for a select few goods and services |
The rate for a product or service depends on its HSN or SAC code. Look up the exact rate on the CBIC site before you invoice. A few goods have special rates outside these slabs. Use Custom for those, or for the old 12% and 28% rates on invoices dated before 22 September 2025.
Tobacco and pan masala moved to the new structure on 1 February 2026. Pan masala, cigarettes, tobacco and similar products now carry 40% GST and biris carry 18%. The compensation cess on them was replaced by an additional excise duty on tobacco and a Health and National Security Cess on pan masala, both charged on top of GST. This calculator works out GST only, not those levies.
What changed on 22 September 2025
For everything except tobacco and pan masala, the 12% and 28% slabs were removed. Most goods in those slabs moved down to 5% or 18%. Some examples from the GST Council's list:
| Goods or service | Before | From 22 Sep 2025 |
|---|---|---|
| Small cars (petrol, LPG or CNG up to 1,200 cc, diesel up to 1,500 cc, and up to 4,000 mm long) | 28% | 18% |
| Motorcycles up to 350 cc, three-wheelers | 28% | 18% |
| Air conditioners, dishwashers, cement | 28% | 18% |
| TVs and monitors larger than 32 inches | 28% | 18% |
| Hair oil, shampoo, toothpaste, toilet soap bars | 18% | 5% |
| Butter, ghee, cheese | 12% | 5% |
| Hotel rooms up to ₹7,500 a night | 12% | 5% (no input tax credit) |
| Gyms, salons, barbers, yoga centres | 18% | 5% (no input tax credit) |
| Individual life and health insurance | 18% | Exempt |
Cars above the small-car limits in the table and motorcycles over 350 cc now carry 40%, with no compensation cess.
Freelancers and agencies. Software, design, consulting and most other professional services were not on the Council's list of service rate changes. They stay at the 18% standard rate. Check the SAC code for your service on the CBIC site if you are not sure.
Working out a new MRP. A toothpaste with an old MRP of ₹249.00 including 18% GST has a price before GST of ₹211.02. At the new 5% rate, the same price before GST gives an MRP of ₹221.57. Use Remove GST at the old rate, then Add GST at the new rate.
How GST is calculated
CGST, SGST and IGST
When the seller and buyer are in the same state, the GST is split into two equal halves: CGST for the centre and SGST for the state (UTGST in a union territory). When the sale crosses a state border, the whole amount is charged as IGST. The total tax is the same either way.
Worked examples
Adding GST. A service priced at ₹1,000.00 plus 18% GST, sold within the state: CGST is ₹90.00, SGST is ₹90.00 and the invoice total is ₹1,180.00. Sold to another state, the same sale carries ₹180.00 of IGST.
Removing GST. An item with an MRP of ₹2,499.00 including 5% GST: the price before GST is ₹2,380.00, with ₹59.50 of CGST and ₹59.50 of SGST.
Rounding
When you add GST to a same-state sale, CGST and SGST are each rounded to the nearest paisa on their own, then added. On some amounts this makes the total differ by one paisa from the figure you get without the split. When you remove GST, the total you entered is kept exactly. If the GST inside it does not split evenly, CGST and SGST differ by one paisa.
Sources
- GST Council press release on the 56th meeting (3 September 2025)
- GST Council FAQs on the 56th meeting rate changes (3 September 2025)
- GST Council newsletter: tobacco and pan masala rates from 1 February 2026 (December 2025 issue)
- CBIC tax information portal: GST rates and rate notifications
- All India Radio: Government notifies 1 February 2026 for new levies on tobacco and pan masala (1 January 2026)