GST Rate Slabs Explained
GST's broad rate slabs (Nil, 5%, 12%, 18%, 28%) with representative examples of what typically falls in each, as a starting reference point.
Nil (Exempt)
No GST charged. Typically unprocessed food staples, fresh produce, and specified essential goods and services.
Typical examples: Fresh fruits and vegetables, milk, unbranded cereals, education and healthcare services (within specified conditions), books.
5%
The lowest positive slab, generally applied to essential and mass-consumption goods and select services.
Typical examples: Packaged food items, life-saving drugs, economy air travel, small restaurants (without input tax credit in most cases).
12%
A middle slab covering a mix of processed goods and select services.
Typical examples: Processed foods, business-class air travel, certain construction services, some consumer durables.
18%
The standard slab most goods and services fall into by default.
Typical examples: Most consumer goods and electronics, financial and professional services, restaurants (non-AC threshold cases vary), telecom services, IT services.
28%
The highest standard slab, applied to luxury and non-essential goods, often layered with an additional compensation cess.
Typical examples: Luxury cars, tobacco products, aerated drinks, and select sin/luxury goods (many also carry compensation cess on top).
Important
This shows the broad rate structure, not an exhaustive HSN or SAC code lookup. The exact rate for a specific product or service depends on its precise classification, and the GST Council revises individual item rates periodically. For a specific transaction, confirm the current rate against the official notified rate schedule or with a tax advisor rather than relying on the category examples above. Related term: GST Returns.