CalculatrGST Rates in India 2026 — The 5%, 18% and 40% Structure
GST used to have four main slabs: 5%, 12%, 18% and 28%. Following the 56th GST Council meeting on 3 September 2025, the Council recommended a simpler structure with a standard rate of 18%, a merit rate of 5% and a special rate of 40% for a select few goods and services. CBIC notified the new rates on 17 September 2025, and they took effect from 22 September 2025. After finding your item's rate, use our 🧾 GST Calculator to work out the tax amount.
Table of Contents
The New Rate Structure
| Rate | What it is for |
|---|---|
| Nil | Items that were already exempt, plus items moved to nil in this reform, such as UHT milk, pre-packaged and labelled paneer (chena), and rotis, parathas and other Indian breads |
| 5% (merit rate) | Most everyday goods that were at 12% or 18%, including many food items, medicines and household articles |
| 18% (standard rate) | Most other goods and services, including items brought down from 28% such as air conditioners, all televisions, cement, small cars and motorcycles up to 350 cc |
| 40% (special rate) | A select few goods and services. Examples in the Council's list include sugar-sweetened or flavoured aerated drinks and caffeinated beverages |
Pan masala, gutkha, cigarettes, chewing tobacco such as zarda, unmanufactured tobacco and bidi were kept out of the 22 September change: the Council said they continue at the existing GST and compensation cess until the compensation cess loan obligations are fully discharged.
Selected Items: Old Rate and New Rate
| Item | Earlier rate | Rate from 22 Sep 2025 |
|---|---|---|
| Pre-packaged, labelled paneer (chena) | 5% | Nil |
| Chapati, roti, khakhra, pizza bread | 5% | Nil |
| Cheese | 12% | 5% |
| Savoury extruded snacks (namkeen type) | 12% | 5% |
| Pastry, cakes, biscuits and other bakers' wares | 18% | 5% |
| Hair oil and shampoo | 18% | 5% |
| Toothpaste and dental floss | 18% | 5% |
| Toilet soap bars | 18% | 5% |
| Agricultural machinery for soil preparation or cultivation | 12% | 5% |
| Air-conditioning machines | 28% | 18% |
| Cement | 28% | 18% |
| Flavoured or sweetened aerated drinks | 28% | 40% |
Source: the HSN-wise annexure in the PIB release on the 56th GST Council recommendations. Medicines in general moved from 12% to 5%, with some life-saving drugs moving to nil, per the same release.
Services and Insurance
| Service | Change recommended by the Council |
|---|---|
| Individual life insurance (term, ULIP, endowment) and reinsurance of it | Exempt from GST |
| Individual health insurance, including family floater and senior citizen policies, and reinsurance of it | Exempt from GST |
| Hotel accommodation up to ₹7,500 per unit per day | 12% to 5% |
| Beauty and physical well-being services such as salons, barbers, gyms and yoga centres | 18% to 5% |
Other services keep the rates notified for them; for example, most professional and IT services are charged at the standard 18%. Check the SAC code for your service.
How to Find the Exact Rate
Sources: PIB, Recommendations of the 56th Meeting of the GST Council (3 September 2025); CBIC Notification No. 9/2025-Integrated Tax (Rate), 17 September 2025, which superseded the 2017 rate notification with effect from 22 September 2025 (parallel Central/UT Tax (Rate) notifications were issued the same day). Individual life and health insurance, and reinsurance of them, were made GST-free by Notification No. 16/2025-Central Tax (Rate), dated 17 September 2025, which amended the exemption notification No. 12/2017-Central Tax (Rate).
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