GST Slabs

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GST 2.0 · UPDATED 2026

GST TAX SLABSIN INDIA

A simple guide to the new GST rates and registration rules — updated after the 56th GST Council meeting reforms.

4 rate slabs 22 Sep 2025 effective date 12% & 28% slabs removed
0%Nil / Exempt
5%Merit Rate
18%Standard Rate
40%Luxury / Sin
GST 2.0 Rate Structure

GST Tax Slabs in India

GST Rate
Category
0% GST
Nil rated
Essential items — fresh food, UHT milk, paneer, Indian breads, books, 33 life-saving drugs, and individual life & health insurance premiums.
5% GST
Merit rate
Daily essentials — packaged food, household items, tractors & farm equipment, transport services, and most agricultural goods.
18% GST
Standard rate
Most goods & services — consumer electronics, small cars & two-wheelers, telecom, IT services, restaurants, and general retail.
40% GST
Luxury & sin
Demerit goods — pan masala, aerated & caffeinated drinks, high-end cars, yachts and private aircraft. Replaces the old 28% + cess combination.
3%
Gold & silver
0.25%
Rough diamonds
1.5% / 5% / 6%
Composition scheme
2% / 0.5%
TDS / TCS under GST
Note: Tobacco, pan masala & related products continue under the earlier 28% + compensation cess structure until states' cess-loan dues are settled — they have not yet moved to the 40% slab.

In India, GST registration threshold limits depend on the nature of supply (goods or services) and the business's location, while different registration types exist for various business models.

Registration becomes mandatory once a business's aggregate annual turnover crosses the specified threshold. "Aggregate turnover" includes all taxable and exempt supplies, exports, and inter-state supplies under the same PAN across India.

Who must register

GST Registration Threshold Limits

Type of Supply Normal Category States Special Category States
Exclusively supply of goods ₹40 lakhs ₹20 lakhs
Supply of services (or both) ₹20 lakhs ₹10 lakhs

Special category states for threshold purposes typically include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand. Some states classified as special category — such as Assam, Jammu & Kashmir, and Himachal Pradesh — opted for the higher normal-state limit of ₹40 lakhs for goods.

Note: Certain businesses must register for GST regardless of turnover — inter-state suppliers of goods, e-commerce operators, sellers on e-commerce platforms, and those liable to pay tax under the reverse charge mechanism.
Business models

Types of GST Registration

Regular Taxpayer
The standard registration for businesses whose turnover exceeds the threshold, or those who register voluntarily. They can collect GST from customers and claim Input Tax Credit (ITC) on purchases, filing monthly or quarterly returns.
Composition Scheme Dealer
A simplified scheme for small taxpayers with turnover up to ₹1.5 crore (₹75 lakhs in special category states) for goods suppliers/traders, or up to ₹50 lakhs for service providers.
  • Benefits: Lower fixed tax rates (e.g. 1.5% for traders, 5% for restaurants, 6% for service providers) and fewer compliance requirements (quarterly returns).
  • Limitations: Cannot claim ITC and cannot make inter-state supplies.
Casual Taxable Person (CTP)
For businesses that occasionally supply goods or services in a state where they have no fixed place of business — e.g. seasonal businesses, trade fairs. Registration is mandatory and valid for a maximum of 90 days (extendable).
Non-Resident Taxable Person (NRTP)
For foreign individuals or businesses supplying goods/services in India without a fixed place of business. Similar to CTP, registration is mandatory and valid for 90 days, requiring an advance deposit of estimated tax liability.
Input Service Distributor (ISD)
For offices of a company that receive tax invoices for services used by multiple branches and wish to distribute the Input Tax Credit to those branches efficiently.
E-commerce Operator (ECO) — TCS Registration
Mandatory for platforms (like Amazon or Flipkart) that facilitate online sales, and for sellers on such platforms, with exceptions for small local sellers of goods.

Rates and thresholds reflect the GST 2.0 reforms effective 22 September 2025 (56th GST Council meeting). GST rates are revised periodically by the GST Council — always confirm the current rate for a specific product or service against the latest official CBIC notification before pricing, invoicing or filing.