GST Rates in India 2025 - Check List of Latest Goods and Service Tax Rates

Replacing various indirect taxes, including VAT, excise duty, and service tax, GST – a unified tax system came into existence on July 1st, 2017. GST operates on many levels of rate structure, catering to diverse goods and services. In this blog, we will look into the various GST rates in India and their impact on businesses and consumers.

Kinds of GST Rates and Structures in India

The basic GST slabs for taxpayers are 0%, 5%, 12%, 18%, and 28%. There are also specific categories with 3% GST on low-value items under special schemes and 0.25% for rough diamonds.

In addition to these GST rates, the law imposes a cess on the sale of certain items, including cigarettes, tobacco, aerated drinks, motor vehicles, and others, with cess rates ranging from 1% to 200%, depending on the item.

Recent GST Reforms in 2025

In 2025, several key GST reforms were introduced to simplify processes and enhance compliance. The GST slabs for processed food items and medical devices were reduced from 18% to 12%, making them more affordable. E-invoicing became mandatory for businesses with turnover above INR 10 crore, and GST refunds for exporters were streamlined for quicker processing. Online sellers now must comply with TCS provisions, boosting e-commerce tax compliance. Penalties for late returns were increased, while the Composition Scheme threshold for small businesses was raised to INR 2 crore. Additionally, GST on renewable energy projects was reduced to 5% to support clean energy initiatives.

HSN and SAC System

GST rates are set in five primary slabs — 0%, 5%, 12%, 18%, and 28% — based on the HSN or SAC code. The 0% GST rate applies to specific essential goods such as food items and other basic necessities.

The following tables talk about specific lists of items that come under 0%, 5%, 12%, 18%, and 28% categories. Let us look at them one by one.

List of the Items Under 0% GST

Category	Tax Rates
Fresh Milk and Cream	0%
Curd, Lassi, Butter Milk	0%
Chena or Paneer	0%
Eggs	0%
Natural Honey	0%
Fruits and Vegetables	0%
Dates and Nuts	0%
Coffee Beans	0%
Unprocessed green leaves of tea	0%
Rice, wheat, maize and other grains	0%
Jaggery, Khandsari Sugar, Rab	0%
Firewood or fuel wood	0%
Handloom	0%
Indigenous handmade musical instruments	0%
Puja Samagri	0%

List of Items Under 5% GST

Category	Tax Rates
Food and Beverages in Cinema Halls	5%
Uncooked, Unfried, and Extruded Snack Palettes	5%
Imitation Zari Thread or Yarn	5%
Fish Soluble Paste	5%
LD Slag	5%
Natural gums	5%
Mehendi paste in cones	5%
Edible Oil	5%
Cocoa Beans	5%
Pizza bread	5%
Namkeens,bhujia and mixture	5%
Natural graphite	5%
Building stone	5%
Fly ash, Bio gas	5%
Natural rubber	5%
Silk yarn	5%
Cotton sewing thread	5%
Coir mats	5%
Carriages for disabled persons	5%
Fishing vessels	5%
Aircraft MRO services	5%

List of Items Under 12% GST

Category	Tax Rates
Condensed milk	12%
Dried Nuts	12%
Wool grease	12%
Roasted chicory	12%
Soya milk drinks	12%
Granite blocks	12%
Surgical rubber gloves	12%
Idols of wood	12%
Bamboo flooring	12%
Household articles of aluminium	12%
Nozzles for drip irrigation equipment	12%
Bicycles	12%
Contact lenses,Spectacle lenses and Frames	12%
Umbrellas	12%

List of Items Under 18% GST

Category	Tax Rates
TV upto 27 inches	18%
Mobile phones	18%
Washing Machine	18%
Refrigerator	18%
Geyser, Cooler and Fan	18%
Electric Appliances	18%
LPG Stoves	18%
Vacuum Vessels and Flasks	18%
Static Converters	18%
Vegetable waxes	18%
Cocoa butter, fat and oil	18%
Chocolates and other food preparations	18%
cakes, biscuits and bakers’ wares	18%
Ice cream and other edible ice	18%
Non-alcoholic beverage	18%
Metal ores and Concentrates	18%
Tar distilled from coal	18%
Beauty or make-up preparations	18%
Shaving Preparations, soaps & deodorants	18%
Polishes and creams	18%
Toilet paper and similar paper	18%
Cigarette Filter rods	18%
Electronic Toys	18%
Bearings	18%

List of Items Under 28% GST

Category	Tax Rates
Online Gaming	28%
Molasses	28%
Caffeinated Beverages	28%
Carbonated Beverages	28%
Cigars, cheroots, and cigarillos	28%
Pumps for dispensing fuel	28%
Air-conditioning machines	28%
Aircrafts for personal use	28%
Smoking pipes	28%
Tobacco leaves	28%

Why Understanding GST Rates is Important?

For Businesses: Accurate knowledge of GST helps ensure compliance with regulations, avoiding penalties and facilitating smoother operations.
For Consumers: GST transparency helps in understanding the final pricing of products and services, ensuring no hidden costs.
For Government: GST collections contribute to public infrastructure, healthcare, education, and more.

Difference Between GST Rates in India and Other Countries

The GST in India differs from the GST in other countries in several ways. Here are some of the key differences:

Dual GST Structure: India follows a dual GST structure, which means that both the central and state governments have the power to impose GST. This is completely different from other countries like Australia, Canada, and Singapore. For instance, In Canada, the federal government takes the responsibility for administering and collecting GST, while the provinces impose separate provincial sales taxes.
Multiple GST Rates: India’s multi-tiered GST rate structure has five main slabs (0%, 5%, 12%, 18%, and 28%), many other countries have a single GST rate or a few rates. For instance, in Australia, the GST rate is a flat 10%, while in Singapore, it is 9%.
Petroleum Products: In India, certain petroleum products do not come under the GST system, including petrol, diesel, and aviation turbine fuel are not included in the GST system. Other countries have a different structure. For example, in Australia, GST is levied on petrol and diesel.
Threshold for GST Registration: In India, businesses with a turnover of under INR 20 lakhs (INR 10 lakhs for special category states) are exempt from GST registration. In comparison, other countries such as Canada and Australia have higher thresholds for exemption (CAD 30,000 in Canada and AUD 75,000 in Australia).
Input Tax Credit: India differs from other nations in terms of the availability and use of the Input Tax Credit (ITC). Businesses in India are eligible to claim the Input Tax Credit (ITC) on GST paid on goods and services used for business. However, firms face difficulties in complying with the complicated and tight criteria for claiming ITC. On the other hand, ITC regulations are more lenient in other nations such as Canada.
Compliance Burden: Compliance requirements for GST in India are considered to be more complex and burdensome compared to other countries. In India, businesses are required to file monthly or quarterly GST returns, depending on their turnover, and comply with various other compliance requirements.

Conclusion:

India’s GST rate structure, which has several slabs and categories, reflects the country’s varied economic environment and the need to strike a balance between affordability and revenue generation. Although the tiered system guarantees fair taxes on necessities, luxuries, and inferior goods, it also introduces complexity in contrast to other nations’ more straightforward systems.