Last updated: 2026-10-21
GST rates after GST 2.0 (from 22 September 2025)
GST was simplified into two main slabs, 5% and 18%, plus a special 40% rate for luxury and "sin" goods. The old 12% and 28% slabs were removed.
| Rate | Examples |
|---|---|
| 0% | Fresh milk, paneer, bread, most fresh food, health and life insurance premiums |
| 5% | Packaged food, soaps and shampoo, many medicines, small hotels, restaurants |
| 18% | Most goods and services: electronics, ACs, small cars, two-wheelers up to 350cc, professional services |
| 40% | Large cars, motorcycles over 350cc, aerated and sugary drinks, tobacco products |
| 3% / 0.25% | Gold and silver jewellery / rough diamonds |
Rates are set item by item. Check the exact rate for your HSN/SAC code on the CBIC website before invoicing.
GST formulas
Adding GST:
GST = Price × Rate ÷ 100
Total = Price + GST
Removing GST from an inclusive price:
Price before GST = Total × 100 ÷ (100 + Rate)
GST = Total − Price before GST
Example: a ₹1,180 bill with 18% GST included has a base price of ₹1,180 × 100 ÷ 118 = ₹1,000, and ₹180 GST.
CGST, SGST and IGST
- Selling within your state: GST is split equally into CGST (central) and SGST (state). 18% becomes 9% + 9%.
- Selling to another state: the full amount is IGST.
Frequently asked questions
Is there still a 12% or 28% GST slab?
No. From 22 September 2025, most items in the 12% slab moved to 5%, and most items in the 28% slab moved to 18%. Luxury and sin goods now attract 40%. Use the custom rate box for any old invoice.
How do I calculate GST from the total amount?
Choose "Price with GST" above and enter the total. The calculator divides it by (1 + rate) to find the base price, and the difference is the GST.
Who needs to register for GST?
Businesses selling goods with yearly turnover above ₹40 lakh (₹20 lakh in some states), or services above ₹20 lakh (₹10 lakh in some states), must register. Some businesses, like online sellers, must register regardless of turnover.