GST Rates 2026: Slabs, Examples & How They Apply
India levies GST across fixed slabs. Here is the current rate structure, what typically falls in each slab, and how CGST, SGST and IGST apply — with examples.
| Slab | Typically applies to |
|---|---|
| 0% (nil / exempt) | Essential items — fresh produce, certain unbranded staples |
| 5% | Mass-consumption goods and household necessities |
| 12% | Processed foods and some electronics |
| 18% | The most common slab — most services and many goods |
| 28% | Luxury and sin goods (often with an additional cess) |
How the slabs work
The correct rate for any item is determined by its HSN code (for goods) or SAC code (for services), which maps to a notified slab. Rates and classifications are updated periodically by the GST Council, so always confirm the current rate for your specific product or service before invoicing.
CGST, SGST and IGST
For a sale within a state, GST splits equally into CGST (central) and SGST (state) — so 18% becomes 9% + 9%. For a sale across states, the full amount is charged as IGST. Some 28% items also attract a compensation cess on top.
Worked example
On services billed at ₹50,000 under the 18% slab, GST is ₹9,000 (CGST ₹4,500 + SGST ₹4,500 for an intra-state client), making the invoice ₹59,000. A ₹1,00,000 inter-state sale at 12% carries ₹12,000 IGST.
This is general information, not tax advice. GST rates change by notification — verify the latest rates with the GST portal or a tax professional.