The rate slabs
Goods and services fall into rate slabs by classification. A nil rate is not the same as an exempt or a non-GST supply, and the difference affects input tax credit.
| Slab | Typically applies to |
|---|---|
| Nil | Specified essential goods and services |
| 5% | Specified mass-consumption goods and some services |
| 12% | A middle band of goods and services |
| 18% | The standard band for most goods and services |
| 28% | Specified goods, several of which also attract compensation cess |
How the tax splits
| Supply | What is charged |
|---|---|
| Within a state or union territory | CGST and SGST or UTGST, half the total rate each |
| Between states | IGST at the full rate |
| Import of goods | IGST, with customs duty, at the point of import |
| Specified goods in the 28% band | Compensation cess in addition to GST |
Why classification matters more than the rate table
The rate follows the classification of the goods or service, and classification is where disputes arise. Two products that look similar can sit in different slabs, and an incorrect classification produces a demand for the difference with interest, often years later. The slab table is the easy part; establishing which slab applies is the work.
Rates change by notification
The slabs above are the structure rather than a current rate list. Individual items move between slabs by notification, and the full schedules run to thousands of entries by HSN code. For a specific product or service, check the current schedule rather than relying on a summary.
Check before you rely on this
Rates, limits and dates change by notification, and some are extended part-way through a year. This table is a summary for general information, not a statement of the law for your case. Confirm the current position from the official source below, or ask us.
CBIC – GST