Understanding the fundamentals of GST tax rates is crucial for businesses and consumers alike. The Goods and Services Tax (GST) is an indirect tax imposed on the supply of goods and services.
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GST Rates in 2024 – GST Structure & Present Slabs of GST in India
The Central Board of Indirect Tax and Customs (CBIC) divides the present slabs of GST rates in India into five categories: 0%, 5%, 12%, 18%, and 28%. Additionally, some goods and services are subject to a cess, which is a surcharge levied over and above the GST rate. It is levied to compensate the states for any revenue loss due to the implementation of GST rules.
The primary GST slabs applicable to regular taxpayers are 0%, 5%, 12%, 18%, and 28%. There are also less commonly used rates, such as 3% and 0.25%. Additionally, taxable composition persons are required to pay General Service Tax at lower or nominal rates, ranging from 1.5% to 6% on their turnover.
Latest Read: All About 54th GST Council Meeting Highlights and Latest Updates
New GST Rates List in India for 2024
Between 2023 and 2024, GST tax rates changed for many products and services. Below are the details of these changes.
| Category | Old GST Rates |
New GST Rates
|
| Railways Goods and Parts under Chapter 86 | 12% | 18% |
| Pens | 12% | 18% |
| Metal Concentrates and Ores | 5% | 18% |
| Certain Renewable Energy Devices | 5% | 12% |
| Recorded media reproduction and print | 12% | 18% |
| Broadcasting, sound recordings, and licensing | 12% | 18% |
| Printed material | 12% | 18% |
| Packing containers and boxes | 12% | 18% |
| Scrap and polyurethanes | 5% | 18% |
As per Press Information Bureau , Below the GST rate recommendations made at the 53rd GST Council Meeting held in June 2024.
Items |
Old Rate |
New Rate |
| A uniform rate for all types of milk cans | – | 12% |
| A uniform IGST rate applies to imports of aircraft tool kits | – | 5% |
| Carton boxes and cases | 18% | 12% |
| All types of solar cookers | 5% | 12% |
| A uniform rate for all types of sprinklers | – | 12% |
| Indian Railways – Platform tickets | – | Exempt |
| Indian Railways – Facility of retiring rooms/waiting rooms | – | Exempt |
| Indian Railways – Cloak room services | – | Exempt |
| Indian Railways – Battery Operated car services | – | Exempt |
| Hostel accommodation service under certain conditions | – | Exempt |
Latest GST Rate Revision in 53rd GST Council Meeting
The 53rd GST Council meeting was held on 22nd June 2024. The meeting was chaired by Union Finance Minister Nirmala Sitharaman, who announced several recommendations to the existing GST list.
53rd GST Council Meeting Highlights
Below are the highlights of the 53rd GST Council Meeting held in June 2024
- A uniform GST rate of 12% is announced for all milk cans, regardless of the material such as steel, iron, or aluminium.
- A 12% GST rate applies to all solar cookers, whether they use a single or dual energy source.
- A 12% GST rate applies to all solar cookers, whether they use a single or dual energy source.
- A 12% GST rate is applied to all types of sprinklers, including fire and water sprinklers.
- A uniform rate of 5% IGST will be applied to the import of parts, components, testing equipment, tools, and toolkits for aircraft, regardless of their HS classification.
- The 53rd GST Council meeting has exempted certain GST rates on services offered by Indian Railways. These include the sale of platform tickets, access to retiring rooms/waiting rooms, cloakroom services, and battery-operated car services. Additionally, intra-railway transactions are now exempt.
- The GST rate is exempted for hostel accommodation services under certain conditions. Students and working professionals who reside in off-campus hostels for a continuous period of 90 days and pay a monthly rent of INR 20,000 per person are eligible for this exemption.
GST Rates Increased in 52nd GST Council Meeting
Items |
Old Rate |
New Rate |
| Scrap and polyurethanes | 5% | 18% |
| Printed material | 12% | 18% |
| Broadcasting, licensing, and sound recordings | 12% | 18% |
| Several renewable energy devices | 5% | 12% |
| Railways goods and parts under Chapter 86 | 12% | 18% |
| Metal concentrates and ores | 5% | 18% |
| Packing containers and boxes | 12% | 18% |
| Pens | 12% | 18% |
| Recorded media print and reproduction | 12% | 18% |
GST Rates Decreased in 52nd & 53rd GST Council Meeting
Items |
Old Rate |
New Rate |
| Carton boxes | 18% | 12% |
| Indian Railways (Platform tickets, retiring rooms/waiting rooms, cloak room services and battery-operated car services) | – | Nill |
| Hostel accommodation services for students and working professionals | – | Nill |
| Keytruda for cancer treatment | 12% | 5% |
| Vehicles equipped with retrofitting kits for disabled people | Applicability | 5% |
| IGST levied on goods sold at the Indo-Bangladesh border | Applicability | Nil |
GST Rates of Goods and Services Under Different Slabs
List of Goods with a 0% GST Rate
Example of Goods |
HSN Code |
GST Rate |
| Milk | 0401 | 0% |
| Egg | 0407 | 0% |
| Unpacked Rice | 1006 | 0% |
| Unpacked Curd | 0403 | 0% |
| Unpacked Lassi | 0403 | 0% |
| Unpacked Buttermilk | 0403 | 0% |
| Kajal | 3304 | 0% |
| Unpacked foodgrains | 1001 to 1106 | 0% |
| Unpacked paneer | 0406 | 0% |
| Gur (jaggery) | 1701 or 1702 | 0% |
| Unpacked Natural honey | 0409 | 0% |
| Fresh vegetables | 0701 to 714 | 0% |
| Fresh Fruits | 0803 to 0810 | 0% |
| Nuts | 0802 | 0% |
| Fresh and Chilled Meat of bovine animals | 0201 | 0% |
| Salt | 2501 | 0% |
| Unbranded atta (flour) | 1101 to 1106 | 0% |
| Prasad (offerings made to deities) | 2106 | 0% |
| Unroasted Coffee Beans | 0901 | 0% |
| Unprocessed Green Leaves of Tea | 0902 | 0% |
| Fresh Ginger | 0910 11 10 | 0% |
| Fresh Turmeric | 0910 30 10 | 0% |
List of Services with a 0% GST Rate
Example of Services |
HSN Code |
GST Rate |
| Educational Services | Heading 9992 or Heading 9963 | 0% |
| Services of General Insurance Business Provided Under Certain Schemes | Heading 9971 or Heading 9991 | 0% |
| Health Care Services | Heading 9993 | 0% |
| Services Provided by a Goods Transport Agency | Heading 9965 or Heading 9967 | 0% |
List of Goods with a 5% GST Rate
Example of Goods |
HSN Code |
GST Rate |
| Ultra High Temperature (UHT) milk | 0401 | 5% |
| Milk Food For Babies | 0402 | 5% |
| Yoghurt | 0403 | 5% |
| Pre-Packaged and Labelled Curd, Lassi, Buttermilk | 0403 | 5% |
| Skins and Parts of Birds like Feathers | 0505 | 5% |
| Beet Sugar, Cane Sugar, Jaggery | 1701, 1702, 1704 | 5% |
| Roasted Coffee Beans | 0901 | 5% |
| Processed Tea | 0902 | 5% |
| Packed Paneer | 0406 | 5% |
| Spices | 0906 to 0910 | 5% |
| Packed and Labelled Rice | 1006 | 5% |
| All Packed Cereals | 10 | 5% |
| Coal | 2701 | 5% |
| All Types of Edible Oils | 1507 to 1518 | 5% |
| Raisins | 0806 | 5% |
| Domestic LPG (liquefied petroleum gas) | 2711 12 00, 2711 13 00, 2711 19 00 | 5% |
| PDS kerosene (public distribution system kerosene) | 2710 | 5% |
| Cashew Nuts | 0801, 0802, 0813 | 5% |
| Fabric | 500, 5111 to 5113 & 5208 to 5212 | 5% |
| Products of coir | 5609 | 5% |
| Apparel and clothing accessories of sales value not exceeding INR 1000 | 61 or 6501 or 6505 | 5% |
| Glass Beads | 7018 | 5% |
| Charger or Charging Station for EV Operated Vehicles | 8504 | 5% |
| Fishery Products | 8902 | 5% |
List of Services with a 5% GST Rate
Example of Services |
HSN Code |
GST Rate |
| Housekeeping Services Like Plumbing, Carpentering, etc | Heading 9954 | 5% |
| Restaurant Services | Heading 9963 | 5% |
| Outdoor Catering Services | Heading 9963 | 5% |
| Printing of Newspapers, Books, etc… | Heading 9988 | 5% |
List of Goods with a 12% GST Rate
Example of Goods |
HSN Code |
GST Rate |
| Condensed milk | 0402 91 10, 0402 99 20 | 12% |
| Butter | 0405 | 12% |
| Cheese | 0406 | 12% |
| Nuts and Dried Dates | 0801, 0802, 0804 | 12% |
| Dried Citrus Fruit | 0805 | 12% |
| Fats of Bovine Animals | 1502 | 12% |
| Sausages | 1601 | 12% |
| Refined Sugar Cubes | 1701 91 , 1701 99 | 12% |
| Packed Paneer | 0406 | 12% |
| All Edibles Prepared or Preserved by by Vinegar or Acetic Acid | 2002 | 12% |
| Packed and Labelled Tender Coconut Water | 2009 89 90 | 12% |
| Diabetic foods | 2106 90 91 | 12% |
| Packed Drinking Water in 20 Litre Bottles | 2201 | 12% |
| Marble and Granite Blocks | 2515, 1210, 2516 | 12% |
| Rubber bands | 4016 | 12% |
| Hand bags and shopping bags, of cotton and Jute | 4202 22 20, 4202 22 30 | 12% |
| Idols of Wood, Stone and Non-Precious Metals | 44, 68, 83 | 12% |
| Tableware and Kitchenware of wood | 4419 | 12% |
| Footwear of Sale Value Not Exceeding Rs.1000 Per Pair | 64 | 12% |
| Building Bricks | 6904 10 00 | 12% |
List of Services with a 12% GST Rate
Example of Services |
HSN Code |
GST Rate |
| Construction of an apartment | Heading 9954 | 12% |
| Hotel accommodation | Heading 9963 | 12% |
| Transport of passengers by Air | Heading 9964 | 12% |
| Business Services for mining, petroleum crude or natural gas. | Heading 9983 | 12% |
List of Goods with a 18% GST Rate
Example of Goods |
HSN Code |
GST Rate |
| Malt | 1107 | 18% |
| Vegetable saps and extracts | 1302 | 18% |
| Glycerol | 1520 00 00 | 18% |
| Waxes | 1521 | 18% |
| Chemically Pure Lactose, Maltose, Glucose and Fructose | 1702 | 18% |
| Chocolate and Cocoa Products | 1804 to 1806 | 18% |
| Pastry Items | 1905 | 18% |
| Ice cream | 2105 00 00 | 18% |
| Non – Alcoholic Beverages | 2202 91 00, 2202 99 90 | 18% |
| Products Containing Nicotine | 2404 12 00 | 18% |
| Ores and Concentrates | 2601 to 2610 | 18% |
| Mineral or chemical fertilisers | 3102 to 3105 | 18% |
| Perfumes and toilet waters | 3303 | 18% |
List of Services with a 18% GST Rate
Example of Services |
HSN Code |
GST Rate |
| Construction Of Commercial Apartments | Heading 9954 | 18% |
| Services In Retail Trade | Heading 9962 | 18% |
| Services In Wholesale Trade | Heading 9961 | 18% |
| Rental Services Of Transport Vehicles | Heading 9966 | 18% |
| Postal And Courier Services | Heading 9968 | 18% |
| Electricity, Gas, Water And Other Distribution Services | Heading 9969 | 18% |
List of Goods with a 28% GST Rate
Example of Goods |
HSN Code |
GST Rate |
| Caffeinated Beverages | 2202 99 90 | 28% |
| Carbonated Beverages | 2202 | 28% |
| Tobacco or Tobacco Substitutes | 2402 | 28% |
| Cement | 2523 | 28% |
| Air-conditioning Machines | 8415 | 28% |
| Monitors and Projectors | 8528 | 28% |
| Motor Vehicles | 8701 to 8704 | 28% |
List of Services with a 28% GST Rate
Example of Services |
HSN Code |
GST Rate |
| Services Provided by a Casinos and Race Club | Heading 9954 | 28% |
| Gambling | Heading 9963 | 28% |
GST Rate Revisions in the GST Council Meetings
The following are the latest GST Council Meetings where the revised GST rates were announced.
GST Rate Revision in 50th GST Council Meeting
During this meeting, held on 11th July 2023, several key revisions were made to the existing GST rate list.
The detailed GST updates of the meeting are outlined below.
Items |
Old Rate |
New Rate |
| Cancer-Related Medicine | – | Exempt |
| Imitation Zari Thread | 12% | 5% |
| Food for Special Medical Purposes (FSMP) | – | Exempt |
| Unfried, Uncooked, and Extruded Snack Palettes | 18% | 5% |
| Medicines for Rare Diseases | – | Exempt |
| LD Slag | 18% | 5% |
| Beverages in Cinema Halls | 18% | 5% |
| Casinos & Horse Racing | 18% | 28% |
| Fish Soluble Paste | 18% | 5% |
Besides this, the council recommended reducing the late fee for delayed filing of GSTR-3B returns for small businesses with nil tax liability.
GST Rate Revision in 49th GST Council Meeting
The 49th meeting of the GST Council convened on 18th February 2023 in Delhi. During the meeting, it was announced that the states in India would receive clearance of compensation cess for June 2022, alongside introducing rate reductions for specific items.
Items |
Old Rate |
New Rate |
| Pencil Sharpener | 18% | 12% |
| Rab | 18% | 5% (if prepackaged else Nil) |
List of items that have become expensive and cheaper.
Costly Items |
Cheaper Items |
| Court-related services
Guthka Pan Masala Chewing Tobacco |
Liquid Jaggery
Data loggers Coal rejects Pencil sharpener Entrance exam fee organised by NTA |
GST Rate Revision in 48th GST Council Meeting
At the 48th Council meeting, eight of the fifteen agenda points were deliberated upon, covering topics such as data sharing. The remaining matters encompass revenue enhancement, the establishment of a GST appellate tribunal, and taxation on pan and Gutkha.
Notably, the GST rates have been reduced for the following items:
Items |
Old Rate |
New Rate |
| Mentha arvensis sale | No RCM | Under RCM |
| Cattle feed, including chuni or churi, khanda, chilka, pulse husks, and concentrates | 5% | Nil |
| Retailed to refineries ethyl alcohol | 18% | 5% |
The rate adjustments were influenced by various factors, including the need to stimulate economic growth, rationalise the tax structure, and address revenue considerations.
Cement, footwear, hotels, and textile and apparel are some sectors that have benefited from this meeting.
GST Rate Revision in 47th GST Council Meeting
On 13 July 2022, the Central Government issued nine notifications from 3/22 to 11/22. New GST rates took effect on 18 July 2022.
Let’s look at more details.
1. Items With Increased Prices
Due to the rate revisions mentioned below, certain items experienced price increases.
Items |
Old GST Rate |
New GST Rate |
| Tetra packs | 12% | 18% |
| Polished and cut diamonds | 0.25% | 1.50% |
| Tar | 5%, 18% | 18% |
2. Items With Decreased Prices
The key reductions announced in this meeting, that make the products cheaper are:
Items |
Old GST Rate |
New GST Rate |
| Importing Diethylcarbamazine (DEC) pills | 5% | Nil |
| Importation of specific defence products | Applicable rates | Nil |
| Ostomy Appliances | 12% | 5% |
| Orthopaedic appliances | 12% | 5% |
| Ropeway transportation of cargo and person | 18% | 5% |
| Renting cost of a truck or goods wagon, with fuel | 18% | 12% |
3. Elimination of GST Exemptions
The 47th GST Council Meeting also focused on eliminating certain GST exemptions. This move aimed to simplify the tax structure and promote uniformity.
Some exemptions that were removed include:
Items |
New Rate |
| Any type of printed map | 12% |
| Parts of goods of heading 8801 | 18% |
| Cheques, lose or in book form | 18% |
| Room rent (excluding ICU) is over ₹5,000 per patient per day. | 5% |
| Hotel stays up to ₹1,000 per day | 12% |
| Bio-medical waste treatment facilities | 12% |
4. Correction of Inverted Tax Structure
Another noteworthy aspect of the meeting was correcting the inverted tax structure in specific sectors or industries. The inverted tax structure occurs when the tax rate on inputs is higher than that on finished goods, leading to a blockage of input tax credit. The corrective measures taken during this meeting aim to streamline taxation and reduce compliance burdens.
Products |
Old rate |
New rate |
| Solar water heaters | 5% | 12% |
| Finished, composition, or composition leathers | 5% | 12% |
| Job for processing of hides, skins, leather, making of identical products, and clay brick manufacturing | 5% | 12% |
| Engagements and subcontracts involving earthwork undertaken with central, state, union territories, and local governmental bodies. | 5% | 12% |
| Air-based wet grinder, atta chakki, sorting, washing, or grading equipment for grain pulses and seeds | 5% | 18% |
| Ink for writing, drawing, and printing | 12% | 18% |
| Dairy machinery | 12% | 18% |
| Lights and fixture | 12% | 18% |
| Marking out instruments | 12% | 18% |
| Paper knives, pencil sharpeners, and cutting blades | 12% | 18% |
GST Rate Revision in 45th GST Council Meeting
The 45th GST council meeting was held on 17th September 2021 and the following decisions had been taken revolving around the GST rates.
Category |
Old Rate |
New Rate |
| Railway goods, locomotives, and parts | 12% | 18% |
| Pens | 12% | 18% |
| Metal concentrates and ores | 5% | 18% |
| Renewable energy devices | 5% | 12% |
| Printed material | 12% | 18% |
| Scrap and plastic waste | 5% | 18% |
GST Rate Revision in 44th GST Council Meeting
The 44th GST council meeting was held on 12th June 2021 and the following decisions had been taken regarding the GST rates effective up to 30th September 2021.
Category |
Old Rate |
New Rate |
| Hand sanitisers | 18% | 5% |
| Equipment to check body temperature | 18% | 5% |
| Ambulances | 28% | 12% |
| Testing kits | 12% | 5% |
GST Rate Revision in 43rd GST Council Meeting
- GST on the export of relief goods will be exempted and will stay in effect until 31 August 2021.
- GST on import of certain medicines are also placed under the exemption list.
- Any Covid-related relief item imported to donate to the government or any relief organization will be exempted from IGST till 31 August 2021.
- The Amnesty Scheme was announced by the finance minister to reduce late fee returns. Small taxpayers can file GST returns under this scheme.
GST Rate Revision in the 42nd GST Council Meeting
Here are the highlights of the meeting held on October 5, 2021.
- Small taxpayers with a turnover of less than ₹ 5 crore can now file quarterly GSTR-3B and GSTR-1 forms where the due date for GSTR-1 will be the 13th day of the month succeeding the quarter.
- The quarterly taxpayers have the option of paying 35% of the net tax liability of the previous quarter, using an auto-generated challan for the first two months of the quarter.
- For the auto-generation of GSTR-3B, a roadmap is prepared, where the details of the supplier’s GSTR-1 will help in auto-populating the ITC. Taxpayers will pay their GST through a simple challan.
- Taxpayers with a turnover of ₹ 5 crore and above will have to mention a 6-digit HSN code. A 4-digit HSN code is to be mentioned by taxpayers with a turnover of less than ₹ 5 crore.
- Bank accounts which have their PAN linked with Aadhaar will be able to receive refunds.
- ISRO, Antrix Corporation, and New Space India Limite (NSIL) will receive GST exemptions to encourage space launching services in India.
- Sanitisers that are non-alcoholic will continue to be taxed at 18% GST.
- The compensation cess collected to date amounts to ₹ 20,000 crore. This amount was disbursed to specific states in India by 5 October 2020.
GST Rate Revision in the 41st GST Council Meeting
The 41st GST Council meeting was chaired by the Union Finance Minister and was held on 27 August 2020. The new revision states the government will provide an additional 0.5% relaxation in states where the borrowing limit is under the FRBM Act. States can now borrow more due to the damage caused by the coronavirus outbreak.
HSN and SAC System in GST Tax Classification
The HSN & SAC codes are two coding systems that classify goods and services for taxation under the GST regime. HSN stands for Harmonised System of Nomenclature, and SAC means Service Accounting Code. These codes are essential for determining the correct applicable tax rate and facilitating international trade and compliance.
Classification of HSN System
The HSN system, created by the WCO and used by India in 1986, is a global way of naming and numbering traded goods for tax and trade purposes. It has 21 sections, 99 chapters, 1244 headings, and 5224 subheadings, each with a six-digit code. The code can have two more digits for domestic use.
The code structure is:
- First two digits: chapter number
- Next two digits: heading number
- Next two digits: subheading number
- Last two digits: further subheading number
The HSN system helps to:
- Classify goods consistently across regions
- Identify and describe goods easily
- Avoid disputes and lawsuits
- Simplify customs processes and documents
- Collect and analyse trade data
For example, the HSN code for rice is 1006, which means it is in section 2 (vegetables), chapter 10 (cereals), heading 06 (rice), and no further subheading. The code also shows the tax rate, which is 5% under GST.
Businesses and tax authorities must use the right HSN codes, as any mistake can cause:
- Wrong tax calculation
- Delayed or denied tax credit
- Penalty or interest for breaking the rules or hiding tax
- Trouble in filing returns and matching invoices
- Problems or seizure of goods at the customs
Classification of SAC System
The SAC system is a code-based classification of services under GST issued by the Central Board of Excise and Customs (CBEC) department. It is derived from the United Nations Central Product Classification (CPC). The SAC system has 99 sections, each identified by a two-digit code.
The structure of the SAC code is as follows:
- The first two digits denote the section number
- The next two digits denote the chapter number
- The subsequent two digits denote the heading number
- The final two digits denote the subheading number
The SAC system helps to standardise, simplify, reduce, enhance, streamline, and promote various aspects of service taxation. The SAC code also determines the tax rate for the service, which varies depending on the service category and location. Service providers and tax authorities should use the correct and updated SAC codes to avoid errors and mismatches.
Conclusion
The GST system is vital for consumers and businesses, making taxation easier by applying the same rates to goods and services. The GST has five different slabs, and some products may have extra cess. In 2024, the GST rates changed for some products, either increasing or decreasing them. These changes aimed to improve the tax system and boost the economy.
FAQs on GST Rates
1. How many slabs are in GST at present?
2. What is the GST Rate on Gold in India?
The GST rate of gold in India is 3%.
3. What is the GST rate on Mobile Phones?
The GST rate on mobile phones is 18%.
4. Who decides GST Rates?
The Central Government decides the GST rates in the country.
5. What is the GST Rate on Laptops?
The GST rate on laptops is 18%.
6. What is the GST Rate on Cement?
The GST rate on cement is 28%.
7. What is The Highest Rate of GST?
The highest GST rate is 28%.
8. What are the 3 Types of GST?
The three types of GST are IGST, SGST, and CGST.
9. Is GST charged on Milk?
The GST on fresh and pasteurised milk is fully exempt under GST. Refer to GST on Milk and Dairy Products for complete list.
10. Who must pay the GST rate?
The supplier of the product is responsible for paying GST.
11. What is the GST Rate on Cars?
The GST rate on cars in India is 28%.
12. What is the GST Rate on TVs or Televisions?
The GST rate on TV or televisions in India is 18% to 28% based on the screen size
