Updated list of GST Rates in India: GST Rates 2024

The Goods and Services Tax (GST) has revolutionized India’s taxation system since its introduction on July 1, 2017. This unified tax regime replaced multiple state and central taxes, aiming to simplify the tax process and create a single market across the country. Here’s a detailed look at the list of GST Rates in India and its applicability. 

What is the structure of GST Rates? 

GST in India is categorized into multiple tax slabs to accommodate the diverse range of goods and services. The primary GST rates are 0%, 5%, 12%, 18%, and 28%. Each slab has been designed to tax goods and services based on their necessity and value. 

What are the benefits of the GST Rate Structure?

• Simplification:
  • GST unifies the tax structure across states, simplifying compliance for businesses. 

• Transparency:
  • Clear tax slabs make it easier for consumers and businesses to understand the taxes they pay. 

• Reduced Cascading Effect:
  • By subsuming multiple taxes, GST reduces the tax-on-tax effect, potentially lowering prices for many goods and services. 

• The GST rate structure is designed to balance the need for revenue with the goal of keeping goods and services affordable for consumers. 

List of GST Rates in India

The GST rates in India for 2024 are categorized into five main slabs: 0%, 5%, 12%, 18%, and 28%. Here’s a detailed table summarizing the list of GST rates in India for various goods and services.

GST Rate	Product	Product Category
0%	Fresh fruits, vegetables, milk, buttermilk, curd	Essential Food Items
	Natural honey, fresh meat, fish, chicken, eggs	Essential Food Items
	Salt, bread	Essential Food Items
	Books, judicial papers, printed books, newspapers	Educational and Informational Items
5%	Edible oil, spices	Food Items
	Tea, coffee (excluding instant)	Beverages
	Coal	Industrial Input
	Life-saving drugs	Pharmaceuticals
	Fertilizers	Agricultural Input
	Agarbatti, mishti/mithai (Indian sweets)	Cultural/Traditional Items
	Footwear (< INR 500), apparels (< INR 1000)	Clothing and Footwear
	Skimmed milk powder, cashew nuts, coir mats	Food and Household Items
12%	Butter, ghee, almonds	Dairy and Nuts
	Fruit juices, mobiles	Beverages and Electronics
	Processed foods	Food Items
	Computers, packed coconut water	Electronics and Beverages
	Umbrella	Household Items
18%	Hair oil, toothpaste, soaps	Personal Care Products
	Ice cream, pasta, toiletries	Food and Personal Care Products
	Corn flakes, soups	Food Items
	Printers, capital goods, industrial intermediaries	Electronics and Industrial Inputs
28%	Small cars (+1% or 3% cess)	Automobiles
	High-end motorcycles (+15% cess)	Automobiles
	Consumer durables (AC, refrigerator)	Household Appliances
	Luxury items (BMWs, cigarettes), aerated drinks (+15% cess)	Luxury Goods and Sin Products

Understand how much is the GST rate on Bike, GST Rate on Car, GST Rate on Electricity?

What is Zero GST Rate? 

Items under the 0% GST rate are exempt from tax to ensure they remain affordable and accessible. This category includes essential commodities such as: 

• Unbranded cereals and grains 
• Fresh fruits and vegetables 
• Milk and dairy products (unbranded) 
• Books and educational materials 

These items are considered necessities and are exempt to support the general populace, especially the economically weaker sections.

Lower GST Rate (5%) 

The 5% GST rate applies to commonly used goods and services that are not essential but still widely used. Examples include: 

• Packaged food items 
• Footwear priced below INR 1000 
• Small restaurants 
• Domestic LPG 

This lower tax rate helps keep costs down for everyday items, benefiting consumers directly. 

Standard GST Rate (12%)

Goods and services falling under the 12% category are typically those that are of standard use but not classified as luxury. Some examples are: 

• Processed food products 
• Computers and software 
• Certain pharmaceuticals 
• Solar water heaters 

These items have a higher value than essentials but are not luxury items, ensuring they are reasonably priced for the general population. 

Higher GST Rate (18%)

This is the most common GST rate, and it covers a broad range of goods and services, including: 

• Consumer electronics like smartphones and laptops 
• Branded garments 
• Industrial intermediaries 
• Restaurant services (non-AC) 

The 18% rate applies to goods and services that are regularly used but are not necessities, balancing affordability and revenue generation. 

Luxury and Sin Goods GST Rate (28%)

Items in the 28% GST slab are considered luxury goods or sin products. This category includes: 

• High-end cars and motorcycles 
• Aerated drinks 
• Tobacco products 
• Luxury hotels and resorts 

These higher tax rates aim to generate revenue from non-essential, high-value items, and discourage the consumption of harmful products like tobacco. 

Changes of GST Rate at 49th GST Council meeting

In the 49th GST Council meeting, held on October 5, 2021, several changes were made to the GST rates for various goods and services.  

• Medical Supplies:  
  • Goods:
    • The GST rate on certain COVID-19 related medical supplies like oxygen concentrators, ventilators, and COVID-19 drugs was reduced to 5% from 12%.  
  • Services:
    • The GST rate on transportation of pilgrims by cable car, ropeway, or aerial tramway was reduced to 5% from 18%.  

• Other Goods:  
  • The GST rate on fortified rice kernels was reduced to 5% from 18%.  
  • The GST rate on cottonseed oil cakes was reduced to 5% from 12%.  

• Services:
  • The GST rate on supply of various services related to the education sector was rationalized. 
  • For example: Services provided by examination boards and related to conduct of examination were exempted from GST.  

Category	Old GST Rate	New GST Rate
COVID-19 Medical Supplies	12%	5%
Fortified Rice Kernels	18%	5%
Cottonseed Oil Cakes	12%	5%
Pilgrim Transportation	18%	5%
Education Services	Varies	Rationalized

These changes were made to provide relief during the ongoing COVID-19 pandemic and to promote certain sectors like healthcare and education.   

Special Rates and Exemptions

Special rates and exemptions are applied to specific sectors to encourage or regulate their growth effectively.   

• Gold and Jewelry:
  • Items like gold and jewelry offer a GST rate of 3%. 
• Real Estate:
  • Affordable housing projects are taxed at 1%, while other real estate projects are taxed at 5%. 
• Petroleum Products:
  • These remain outside the GST regime and are taxed by states under the old VAT system. 

Conclusion 

Understanding the list of GST rates in India is crucial for both consumers and businesses. While the system may seem complex initially, it brings uniformity and simplicity to the taxation process, benefiting the economy in the long run. 

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