GST Rates in India 2024 – Complete List of Tax Slabs and Changes
The GST (Goods and Services Tax) in India for 2024 follows a well-defined structure, placing goods and services into five main slabs: 0%, 5%, 12%, 18%, and 28%. Essential commodities and services like fresh produce, some health-related products, and educational materials may fall under the 0% GST slab or be exempted from GST altogether.
Items such as everyday necessities like pasta, soups, and toiletries fall under the 18% slab. The highest 28% slab includes luxury items, such as high-end vehicles, yachts, and some luxury foods like caviar and premium alcohol.
Revisions to GST rates and classifications for goods and services can also occur, and revenue collected from GST continues to contribute significantly to India’s economy, with an average monthly GST revenue of around ₹1.67 lakh crore in 2024. You can check government websites and mobile apps for specific GST rates for individual products, along with understanding how revisions in the Interim Budget might affect overall rates and allocations. Businesses looking for financial support can apply for business loan at competitive rates, including GST rates.
Meaning of GST Rates
The GST (Goods and Services Tax) in India is a comprehensive, multi-stage tax system that streamlines the tax structure by subsuming various indirect taxes. GST rates are categorized into five slabs: 0%, 5%, 12%, 18%, and 28%, reflecting the nature and category of goods or services. Essential goods, such as some foods and health-related items, may fall under the 0% slab (CBIC GST India).
Other goods and services are taxed based on their classification using the HSN or SAC codes. The 18% slab covers goods like toiletries and soups, while luxury goods such as premium cars and alcohol are taxed at 28%.
Also, did you know that working capital loan provide essential funding to cover day-to-day operational costs, allowing companies to manage GST-related cash flows.
GST Tax Slabs And Revisions
The GST (Goods and Services Tax) in India follows a comprehensive tax structure, classifying goods and services into five main slabs: 0%, 5%, 12%, 18%, and 28%. This structure aims to simplify the tax system by integrating various indirect taxes.
Types of GST Rates and GST Tax Rate structure in India
- GST Slabs: GST is structured into five main slabs: 0%, 5%, 12%, 18%, and 28%. Lesser-used rates of 3% and 0.25% also exist for specific goods and services.
- Composition Taxable Persons: These individuals pay GST at reduced rates (1.5%, 5%, or 6%) on their turnover. GST also has TDS and TCS rates of 2% and 1%.
- Interstate vs. Intrastate Supplies: GST rates apply to interstate supplies as IGST and to intrastate supplies as combined CGST and SGST rates.
- Cess: Additional cess is levied on items like cigarettes, aerated drinks, and vehicles, ranging from 1% to 204%.
- GST Rates by Products:
| Rate | Products |
| 0% | Unpackaged food grains, eggs, milk, educational services |
| 5% | Tea, sugar, domestic LPG, essential oils, shoes (< Rs.500) |
| 12% | Ghee, processed food, almonds, umbrellas |
| 18% | Toiletries, capital goods, ice cream, printers |
| 28% | Luxury items: vehicles, electronics, consumer durables, luxury goods |
The SME loan and Mudra Loan scheme supports small-scale entrepreneurs by providing low-interest loans, helping them handle GST payments and compliance.
Also Read: Types of GST in India – What is CGST, SGST and IGST?
What are the GST rates in India 2024?
The GST tax rates in India remain dynamic, subject to ongoing revision:
- GST revenue: In 2024, the GST collection continues to significantly contribute to India’s revenue, with an average monthly collection of ₹1.67 lakh crore.
- HSN and SAC System: Goods and services are categorized under the HSN (Harmonized System Nomenclature) and SAC (Service Accounting Code) systems, helping to structure the GST rates.
- Impactful Revisions: The GST structure is continually monitored, with ongoing revisions ensuring relevance and balance between revenue collection and consumer impact
Key GST Rate Revisions
GST Rate Changes at the 49th GST Council Meeting
The 49th GST Council meeting held on 18th February 2023 led to several significant revisions in GST rates:
| Item Description | Before | After |
| Rab/Liquid jaggery* | 18% | Nil (sold loose) / 5% (sold labeled/pre-packaged) |
| Pencil sharpeners* | 18% | 12% |
| Certain tracking devices fixed on durable containers^ | Applicable rate | Nil |
| Coal rejects supplied to the washeries* | Applicable cess rate | Exempted from cess |
| Authority, board, or body set up by Central/State Gov’t* | Applicable rate | Exempted |
Other Key GST Rate Decisions
- MUV Classification: The alignment of MUVs with SUVs was not discussed due to time constraints.
- GST on Cement: The fitment committee will study the matter, and it may appear in the next Council meeting.
- Millet-based Health Products: Discussions are ongoing for a rate cut on these products.
- Reverse Charge on Premises Rental: Services such as renting premises for commercial use to local bodies, or services provided by registrars of courts/tribunals, will attract GST on a reverse charge basis from 1st March 2023, as per CGST (Rate) Notification No. 2/2023 dated 28th February 2023.
GST Rate Hikes and Cuts
Costlier Items:
| Description of Goods/Services | Old Rate | New Rate |
| Cut and Polished Diamonds | 0.25% | 1.50% |
| Tetra Pack (Aseptic Packaging Paper) | 12% | 18% |
| Tar (from coal, gasification plants, or coke oven plants) | 5%/18% | 18% |
Cheaper Items:
| Description of Goods/Services | Old Rate | New Rate |
| Import of Diethylcarbamazine (DEC) for National Filariasis Program (IGST) | 5% | Nil |
| Import of specific defense items by private businesses for defense purposes | Applicable rates | Nil |
| Ostomy Appliances | 12% | 5% |
| Orthopedic appliances (e.g., intraocular lenses, splints, etc.) | 12% | 5% |
| Transport of goods and passengers by ropeways (with ITC services) | 18% | 5% |
| Renting of trucks or goods carriages, including fuel costs | 18% | 12% |
These rates came into effect on 18th July 2022, subject to CBIC notification.
Also Read: GST Registration Online
Pruning of GST Exemptions
The GST Council has revised and withdrawn certain exemptions:
| Description of Goods/Services | Old Rate | New Rate |
| Maps and hydrographic charts, atlases, wall maps, globes (printed) | Nil | 12% |
| Cheques, loose or in book form | Nil | 18% |
| Parts for goods under heading 8801 | Nil | 18% |
| Air transportation to/from northeastern states & Bagdogra | Nil | Restricted to economy class |
| Transportation of certain goods/materials by rail or vessel, storage, or warehousing of commodities like spices, copra, cotton, etc., and services by RBI, SEBI, IRDA, FSSAI, renting of residential dwellings to GST-registered businesses, and cord blood banking services |
Nil | Applicable rate |
| Room rent over Rs. 5,000 per patient day (excluding ICU) | Nil | 5% |
| Biomedical waste treatment facilities | Nil | 12% |
| Hotel accommodations priced up to Rs. 1,000 per day | Nil | 12% |
| Training or coaching in recreational activities other than by individuals | Nil | Applicable rate |
| Partially Exempted Goods: | ||
| Petroleum/ Coal bed methane | 5% | 12% |
| e-Waste | 5% | 18% |
| Scientific and technical instruments for public-funded research institutes | 5% | Applicable rate |
The rates came into effect on 18th July 2022, subject to CBIC notification.
Correction of Inverted tax structure
In 2024, several key revisions have been made to India’s GST (Goods and Services Tax) rates:
- Toys and Essential Goods: Changes have been implemented to keep children’s toys in the lower slabs to ensure affordability for families (CBIC GST India).
- Automotive and Luxury Goods: Luxury items like premium cars and high-end motorcycles continue to fall into the 28% slab. However, cess rates vary, with premium vehicles attracting an additional 1% to 15% cess, depending on the type.
- Essential Food Items: Pre-packaged and labeled food items have been maintained in the lower slabs, primarily at 5% to 12%, depending on their nature and categorization.
- HSN and SAC Classification: Revisions have emphasized using HSN (Harmonized System Nomenclature) for goods and SAC (Services Accounting Code) for services, ensuring accurate classification and taxation.
- Amendments in GST Distribution: The GST distribution process has been streamlined to ensure that taxes on input services are appropriately allocated across states and union territories.
These revisions ensure a balanced approach, supporting essential items and services while maintaining tax revenue. For a detailed list of GST rates and revisions, refer to the official GST portal.
Frequently Asked Question
1. What are the 5 rates of GST?
The GST system in India has five main rates: 0%, 5%, 12%, 18%, and 28%. The 0% rate covers essential goods such as fresh produce, while higher slabs encompass various goods and services, balancing consumer affordability and revenue needs.
2. What are the 4 slabs of GST?
GST has four main slabs of 5%, 12%, 18%, and 28%. Goods and services are categorised based on HSN and SAC codes, with essential items and luxury goods placed at opposite ends of the spectrum.
3. What are the 18% GST items?
The 18% GST slab includes a range of goods and services such as toiletries, processed foods, some electronic items, and works contracts for infrastructure projects, striking a balance between affordability and revenue.
4. Is GST on labour charges 12% or 18%?
GST on labour charges typically falls under the 18% slab. However, specific services and job works, including clay brick manufacturing and leather product processing, are subject to 12%.
Latest News
Major GST Relief on the Horizon for Foreign Airlines and Shipping Lines
In a significant move poised to boost India’s appeal as a business-friendly destination, the government is planning substantial GST relief for foreign airlines and shipping lines after the upcoming elections. This strategic decision is expected to exempt these entities from paying GST on imports, allowing them to instead disburse GST at the time of service provision. Such a shift will not only simplify the tax compliance process but also enhance operational efficiencies for international carriers operating within Indian boundaries.
At the heart of this reform is the modification of the ‘related party transaction’ clause under the Goods and Services Tax framework. Typically, these transactions, which occur between entities under common control or management, are taxed at 18%. The proposed changes would ease the stringent compliance demands currently placed on foreign companies, many of which involve imports from their parent companies located abroad.
This anticipated regulatory relief comes as part of a broader effort by the Indian government to cultivate a more conducive environment for international trade and investment. By reducing the compliance burden, the government aims to attract more foreign investment and stimulate economic activities linked to international transportation and logistics.
News Update Date: 15 May 2024
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