India’s GST structure changed significantly under the GST 2.0 reform, effective 22 September 2025. If you’re still working from the old five-slab system, here’s what actually changed and what the current rate list looks like.
The old structure — 0%, 5%, 12%, 18%, and 28% — has been simplified to essentially two main rates:
So today, GST runs on four core slabs: 0%, 5%, 18%, and 40%, plus a few retained niche rates for precious metals and stones.
Unbranded food staples, fresh produce, milk, books, individual health and life insurance, lifesaving medicines, and educational materials/stationery.
Daily essentials, packaged staples, agricultural goods, healthcare equipment, public transport, and most medicines that previously sat at 12%.
This is now the default rate for most goods and services that don’t fall into a specific lower or higher category — including electronics (mobile phones fall under HSN 8517 at 18%), cement, small cars, motorcycles up to 350cc, home appliances, IT and software services, and most professional services.
Luxury vehicles, motorcycles above 350cc, aircraft for personal use, pan masala, aerated and caffeinated beverages, and other sin/luxury goods.
A few categories people search for specifically:
Since GST rates attach to specific HSN (goods) or SAC (services) codes rather than general product names, the safest approach for invoicing is:
Use our free GST Invoice Generator — it has a built-in HSN/SAC field and automatically calculates CGST, SGST, or IGST based on the rate you select, already updated for the current GST 2.0 slabs.
If you’re still generating invoices with 12% or 28% as an option, they’re likely outdated — those slabs no longer apply to most goods. Using an old rate isn’t just a formatting issue; it can create real problems:
What are the current GST slabs in 2026? Four main slabs: 0% (exempt), 5%, 18%, and 40%, plus retained niche rates of 3% for gold/silver and 0.25–1.5% for diamonds and precious stones.
What happened to the 12% and 28% GST slabs? They were merged into the new structure under GST 2.0, effective 22 September 2025 — most 12% items moved to 5%, and most 28% items moved to 18%, with a narrow set of luxury/sin goods moved to the new 40% slab instead.
How do I find the GST rate for a specific product? Identify the exact HSN (for goods) or SAC (for services) code for your item, then check the current rate against the official GST portal or CBIC notification — general category guides like this one are a starting point, not a substitute for the exact code-level rate.
Is GST the same for online and offline purchases? Yes — the applicable GST rate depends on the product’s HSN classification, not the sales channel.
Do I need to update my invoicing software after the GST 2.0 change? Yes, if it still has 12% or 28% as selectable rates. Any invoice generated with an outdated rate can cause downstream issues for both you and your customer’s return filing.
