GST Rates – Goods

GST stands for Goods and Services Tax and it is classified into three types

• CGST – Central GST
• SGST – State GST
• IGST – Integrated GST

Earlier, GST rates followed a 4-tier structure (5%, 12%, 18%, and 28%), with some items at nil rate or 025%. However, the GST Council has now revised the system (September 2025) to make it simpler and more consumer-friendly.

The table given below shows the GST tax rate on some common items -

GST Goods Tax Rates	Products
Nil Rated	Essential food items, medicines, books, and sanitary products, milk, life-saving medicine
5%	Household necessities, packaged foods, daily essentials, select services, sugar, tea, coffee, sweets, coal
18%	Standard rate for most goods and services, including consumer durables, electronics, and industrial supplies, daily essentials
40% (Luxury/Demerit Rate)	High-end and sin goods such as luxury cars, tobacco, and premium items

The government has proposed a 2-tier tax structure for all goods and services under the slabs- 5%, 18% and 40%. After the recent revision of GST rates, these are the commodities that fall under the two tax slabs along with those that do not attract any tax.

GST rate schedule for Goods that underwent changes :

• Nil Rated Goods & Services (GST 0%): The following goods/services attract no GST:

• Milk, curd, lassi, buttermilk
• Fresh vegetables, fruits, cereals, and pulses (unbranded & unpackaged)
• Salt
• Sanitary napkins
• Picture books, children’s drawing/colouring books
• Life-saving medicines and vaccines
• Palmyra jaggery
• Human hair (worked or dressed)

 

• 5% Tax Slab: Given below are the items that have been added to the 5% GST tax rate slab along with the other existing items-

• Edible oil, sugar, tea, coffee (except instant), and spices
• Sweets, mishti/mithai, jaggery
• Butter, ghee, cheese, condensed milk, milk-based beverages
• Packaged food items: pasta, noodles, ketchup, jam, mayonnaise, packaged juices, bhujia, namkeen, chips
• Insulin and certain life-saving drugs
• Coal (down from 11.69%)
• Agarbatti
• Insurance premiums (revised from 18%)

• 18% Tax Slab: After the GST council meeting on 4th September, the following items were added to the 18% GST rates category-

• Toothpaste, soaps, shampoos, hair oil, detergents
• Processed food and beverages (not falling in 5%)
• Consumer durables like TVs, refrigerators, washing machines, air conditioners (moved down from 28%)
• Small cars (moved from 28%)
• Computers, printers, and capital goods
• Industrial intermediaries and machinery
• Packaged services not specifically exempted

• 40% Tax Slab: The items mentioned below have been added to the 40% GST tax rate slab among the other existing items-

• Luxury cars & SUVs
• High-end motorcycles
• Cigarettes and other tobacco products
• Aerated drinks & premium beverages
• Select luxury durables (imported luxury appliances, watches, etc.)

GST rate on electrical goods/machinery

Rate of GST on goods
0%	None specifically in these categories under the new structure—Nil rates apply to essentials like life-saving medicines, health insurance, some education services, and basic food items.
5%	Sewing machine
18%	Televisions  Air-conditioners Refrigerators Washing machines Dishwashers Vacuum cleaners Microwave ovens Electric cooking appliances Food grinders Hair dryers Electric shavers Electric irons Lighting fixtures
40%	No electrical goods now fall under 40%. Higher tax applies only to luxury or sin goods such as luxury vehicles, tobacco, aerated drinks, etc.

GST rate on sports goods

GST Goods Tax rate
18%	Sports goods other than articles and equipment for general physical exercise.

GST rate on leather goods

GST Goods Tax rate
18%	Standard leather items (e.g., trunks, bags, wallets) Special sports leather gloves