GST Rate Slabs in 2026: 0%, 5%, 18% and 40% Explained
Since GST 2.0 came into force on 22 September 2025, India's GST slabs are 0%, 5%, 18% and 40%, replacing the older structure that also included 12% and 28%. Most items that sat in those two removed slabs have moved into a neighbouring one. Always confirm the current rate for a specific item on the official GST portal rather than assuming based on an old bill.
Since GST 2.0 came into force on 22 September 2025, India's GST slabs are 0%, 5%, 18% and 40%. This replaced the older structure that also included 12% and 28%, with most items that used to sit in those two slabs moved into a neighbouring one. Always confirm the current rate for a specific item on the official GST portal rather than assuming based on an older bill or listing.
The four current slabs
| Slab | General idea | Calculator example (on a Rs 1,000 base price) |
|---|---|---|
| 0% | Exempt or nil-rated goods and services | GST amount: Rs 0. Final price: Rs 1,000 |
| 5% | Essential and mass-consumption items | GST amount: Rs 50. Final price: Rs 1,050 |
| 18% | The standard, most widely used slab | GST amount: Rs 180. Final price: Rs 1,180 |
| 40% | A smaller set of specific goods and services, generally where a higher rate applied even under the previous structure | GST amount: Rs 400. Final price: Rs 1,400 |
Source: GST Council announcements around GST 2.0 and the official GST and CBIC portals (checked September 2026). This table shows the general slab structure and a calculator example for each rate; it deliberately does not list which specific products fall into which slab, since item-by-item classification is exactly the kind of detail that should be confirmed on the official portal rather than taken from a general explainer.
Use the GST calculator to add or remove GST at any of these slabs and see the CGST/SGST or IGST split for your own numbers.
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Why 12% and 28% were removed
The 56th GST Council meeting (3 September 2025) replaced the four-tier structure with a standard rate of 18%, a merit rate of 5% and a special de-merit rate of 40% for a select few goods and services. Most items moved down: for example, many food items such as butter, ghee, namkeens and instant noodles went from 12% or 18% to 5%, and air conditioners, TVs, dishwashers, small cars and motorcycles up to 350cc went from 28% to 18%. Some bigger cars moved from 28% to 40%.
Do not assume every item that used to be at 12% moved to 5%, or every 28% item moved to 18%. The actual mapping varies by product category, so check the current rate for your specific item on the GST portal rather than guessing based on the old slab it used to sit in.
How to check the current rate for a specific item
- Open the CBIC GST site, cbic-gst.gov.in, and go to the GST rates section, or read the rate annexures in the PIB release on the 56th GST Council meeting.
- Search for the specific good or service, or its HSN/SAC code if you know it, since GST rates are classified by these codes rather than everyday product names.
- Note the rate against that code, and cross-check with a recent invoice from a supplier or ask a GST practitioner if the classification is unclear.
- Use that confirmed rate in the GST calculator for your actual pricing or billing.
What this means for everyday shopping and billing
For most everyday purchases, the practical effect of GST 2.0 is that the tax line on your bill should now show one of 0%, 5%, 18% or 40%, and if you see a 12% or 28% figure on a bill dated after 22 September 2025, it is worth asking the seller whether their billing system has been updated. The one planned exception: the Council kept pan masala, gutkha, cigarettes, chewing tobacco, unmanufactured tobacco and bidi at their old GST and compensation cess rates until the compensation cess loans were paid off, so tobacco bills followed a separate timeline.
Using the slab structure with the GST calculation formulas
Once you know the correct current slab for an item, the same forward and reverse GST formulas apply regardless of which of the four rates you are using. See the GST calculation formula for adding GST to a base price, or reverse GST for pulling the tax amount back out of a price that already includes it.
Goods and services changed on different footing
New rates on services and on all goods except the tobacco and pan masala list took effect on 22 September 2025. From the same reform, GST on pan masala, gutkha, cigarettes and chewing tobacco is charged on the retail sale price rather than the transaction value. If you deal in these items, follow the CBIC notifications for your product rather than the general slab table.
What businesses need to update
If you run a business that bills customers or files GST returns, GST 2.0 means checking every product or service you sell against the new slab structure, updating billing software and price lists accordingly, and training staff who prepare invoices manually to use the new rates rather than the old ones. This is a one-time but important piece of work right after a rate change like this, since continuing to use an old rate on new invoices can create compliance problems down the line, not just a wrong number on a receipt.
Common mistakes
- Assuming an item's old 12% or 28% rate automatically became a specific new slab without checking.
- Using a pre-GST 2.0 price list or invoice template that still shows an old rate.
- Treating this general explainer as the source for a specific item's exact rate, rather than checking the official portal.
- Confusing a rate change with a price change; a lower GST rate does not automatically mean the seller reduces the base price by the same margin.
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Frequently asked questions
What are the current GST slabs in India?
Since GST 2.0 came into force on 22 September 2025, the slabs are 0%, 5%, 18% and 40%. The earlier 12% and 28% slabs were removed, with tobacco and pan masala kept on their old rates and cess for a transition period.
Did every item that was at 12% GST move to 5%?
Not necessarily. The mapping from the old slabs to the new ones varies by product category, so check the current rate for your specific item on the GST portal rather than assuming.
Why does my old invoice show 12% or 28% GST?
That invoice was likely issued before 22 September 2025, when the old slab structure was still in effect. A bill dated after that should use one of the current 0%, 5%, 18% or 40% rates.
Where can I check the exact GST rate for a specific product?
On the CBIC GST site, cbic-gst.gov.in, in its GST rates section, or in the rate annexures of the PIB release on the 56th GST Council meeting. Search by the HSN code for goods or the SAC code for services.
Does a lower GST slab mean the final price is automatically lower?
Not necessarily. The final price depends on both the base price the seller sets and the GST rate applied, so a lower rate does not guarantee a lower final price if the base price also changes.
Sources
- PIB: Recommendations of the 56th GST Council meeting (3 Sep 2025) (checked 2026-09)
- CBIC GST: goods and services rate schedules (checked 2026-09)
Rules and limits change. Always check the latest official notification or portal before you submit a form.