| Old Rate | Status in GST 2.0 | Moved To |
|---|---|---|
| 12% slab | ❌ Abolished | Items moved to either 5% or 18% |
| 28% slab | ❌ Abolished | Items moved to 18% or new 40% |
| 5% slab | ✅ Retained | Essential goods continue at 5% |
| 18% slab | ✅ Retained | Becomes the standard rate |
| 0% (exempt) | ✅ Retained | Basic food, healthcare, education exempt |
| Item | Before GST 2.0 | After GST 2.0 | Change |
|---|---|---|---|
| Packaged foods (12% items) | 12% | 5% or 18% | Many items cheaper |
| Electronics (laptops, phones) | 18% | 18% | No change |
| Restaurants (AC) | 18% | 18% | No change |
| Restaurants (non-AC) | 5% | 5% | No change |
| Luxury cars, tobacco | 28% | 40% | More expensive |
| Medicines & healthcare | 5–12% | 5% | Cheaper |
| Professional services (CA, lawyer) | 18% | 18% | No change |
| Restaurant Type | GST Rate | ITC Available? |
|---|---|---|
| Standalone restaurant (non-AC) | 5% | No |
| Standalone restaurant (AC) | 5% | No |
| Restaurant in hotel (room rate < ₹7,500/night) | 5% | No |
| Restaurant in hotel (room rate > ₹7,500/night) | 18% | Yes |
| Cloud kitchens / Zomato / Swiggy | 5% | No |
| Outdoor catering | 18% | Yes (if registered) |
Add or remove GST with updated 2.0 rates. Get CGST, SGST, IGST breakup instantly.
Open GST Calculator →The GST rate rationalisation effective from 22 September 2025 moved the headline structure toward 5% and 18%, with a special 40% rate for specified luxury and demerit goods. GST classification still depends on the applicable HSN/SAC and specific notifications, so the rates below are a high-level guide rather than a substitute for classification.
5% applies to specified goods and services that fall within the notified 5% category. The exact rate should be verified against the applicable HSN/SAC entry and current notifications.
18% is the principal standard rate for a wide range of goods and services. The exact treatment remains classification-specific, including exceptions, exemptions, and special rates.
40% is a special rate for specified luxury and demerit goods notified under the revised framework. Do not assume that every item previously taxed at 28% automatically moved to 40%; verify the current HSN/SAC treatment.
The old 12% and 28% structures were rationalised, but product-by-product treatment depends on the revised notifications. Classification should always be checked at the HSN/SAC level before invoicing.
Calculating GST is now simpler. For intrastate transactions (within same state), GST is split equally as CGST (Central) and SGST (State). For interstate transactions, IGST applies at the full rate. Use our free GST calculator for instant calculation.
Example: Product MRP ₹10,000 at 18% GST = ₹11,800 total. CGST = ₹900, SGST = ₹900 for intrastate sale.
Rate rationalisation can simplify many transactions, but businesses still need accurate HSN/SAC classification, exemption checks, place-of-supply rules, and ITC compliance. GST returns filing — monthly GSTR-1 and GSTR-3B — remains the same process but classification disputes should reduce substantially.