GST slabs in force (since 22 September 2025)
| Rate | Applies to (examples) |
|---|---|
| 0% | Unbranded food staples, fresh produce, education and health services, UHT milk, paneer, individual life & health insurance premiums |
| 0.25% | Rough / unpolished diamonds |
| 3% | Gold, silver, platinum and jewellery |
| 5% | Essentials and merit goods — packaged foods, medicines, agricultural machinery, small cars & two-wheelers (≤350cc), cement-alternatives, most items moved down from 12% |
| 18% | The standard rate — most goods and services, electronics, ACs, TVs, cement, and most items moved down from 28% |
| 40% | Demerit and luxury goods — tobacco products, pan masala, aerated drinks, large cars, motorcycles above 350cc |
Classifications change through GST Council notifications — always verify the current rate for your specific product or service (HSN/SAC code) before invoicing.
Formulas
Add GST: Total = Base × (1 + r/100) · Remove GST: Base = Total ÷ (1 + r/100)
Worked example
A service billed at ₹10,000 plus 18% GST: tax = ₹1,800 (₹900 CGST + ₹900 SGST within a state), invoice total ₹11,800. Working backwards from an inclusive MRP of ₹11,800: base = 11,800 ÷ 1.18 = ₹10,000 — not ₹11,800 − 18% = ₹9,676, which is the classic reverse-calculation error.