GST Índia (slabs 5/12/18/28%)

GST India: 5/12/18/28% slabs

India's GST (Goods and Services Tax) went live in July 2017 and is run by the GST Council. Instead of one rate, it has several slabs. The 5% band covers essentials like packaged food, transport and basic apparel. 12% catches medicines, processed food and business-class travel. 18% is the standard rate that most goods and services fall under, including electronics and financial services. At the top sits 28% for luxury and "sin" goods such as cars, tobacco and aerated drinks, plenty of which also carry a Compensation Cess. The math is straightforward: GST = Value × slab. Take ₹ 1,000 at 18% and you get ₹ 180 of GST, for a total of ₹ 1,180. On domestic supplies the GST is split into CGST (Centre) and SGST (State), each taking half the slab; for inter-state supplies you use IGST at the full slab rate.

Applications and context

This matters for Brazilian exporters to India, for marketplaces like Amazon.in and Flipkart, for SaaS and digital services that bill Indian customers, and for anyone quoting prices in international trade. Exports themselves are zero-rated, but importers in India still pay IGST at customs on top of the Basic Customs Duty.

FAQ

How do I find the correct slab? Look it up by the product's HSN code for goods, or the SAC code for services. Both are listed in the official GST Council notifications.

What is Compensation Cess? It's an extra charge stacked on the 28% slab for luxury and sin goods like cigarettes, aerated drinks and large cars. The money goes toward making up the revenue states lost under GST.

Are there other rates? There are a few. Exempt items such as fresh produce sit at 0%, rough diamonds at 0.25%, and gold and precious metals at 3%. Still, the four main slabs account for most of what gets supplied.