GST Tax Slabs & Rates
Complete information about GST rates and categories (Updated 2025)
Exempt
Essential goods and services that are completely exempt from GST
Special Rate (Gold/Silver)
Special reduced rate primarily for precious metals
Merit Rate
Reduced rate for essential and merit goods
Standard Rate
Standard rate for most goods and services
Demerit Rate
High rate for luxury and demerit goods
0% GST - Exempt
Essential goods and services that are completely exempt from GST
Examples of goods/services:
3% GST - Special Rate (Gold/Silver)
Special reduced rate primarily for precious metals
Examples of goods/services:
5% GST - Merit Rate
Reduced rate for essential and merit goods
Examples of goods/services:
18% GST - Standard Rate
Standard rate for most goods and services
Examples of goods/services:
40% GST - Demerit Rate
High rate for luxury and demerit goods
Examples of goods/services:
Special GST Provisions
Composition Scheme
Simplified GST scheme for small businesses
- Turnover limit: ₹1.5 crore for goods, ₹50 lakh for services
- Fixed rate: 1% for manufacturers, 2.5% for retailers, 6% for restaurants
- No input tax credit available
- Quarterly return filing
- Cannot charge GST separately on invoices
Reverse Charge Mechanism
Recipient pays GST instead of supplier
- Applies to specific goods and services
- Unregistered suppliers to registered recipients
- Import of services
- Goods transport agency services
- Legal services by advocates
Input Tax Credit (ITC)
Credit for GST paid on inputs
- Available on business purchases
- Must have valid tax invoice
- Supplier must file returns
- Payment to supplier within 180 days
- Not available on personal use items
Recent GST Rate Changes
September 2025 - GST 2.0 Implementation
Simplified GST structure with 5 rates: 0%, 3%, 5%, 18%, and 40%
July 2024 - Textile Rate Reduction
Textile and garment rates reduced from 12% to 5%
January 2024 - Digital Services
Clarification on GST for digital services and online platforms
Important Notes
- GST rates may vary based on specific product specifications and HSN codes
- Always verify the latest rates from official GST portal before filing returns
- Some products may have different rates for different variants or specifications
- Consult a tax professional for complex cases or business-specific queries