The GST rate of India is structured into multiple tax slabs, ensuring that different categories of goods and services are taxed appropriately. The Goods and Services Tax (GST) was implemented to replace multiple indirect taxes and create a unified tax system in India. In this guide, we will explore the GST tax rates applicable to various goods and services, including items taxed at 0.25%, 5%, and the highest GST rate in India.
0.25% GST Rate Items
The 0.25% GST rate is the lowest tax slab in India, mainly applicable to precious and semi-precious stones. These include:
- Rough diamonds
- Unpolished or raw precious stones
- Other semi-precious stones
This minimal tax rate ensures that the gem and jewelry industry remains competitive while still being subject to GST compliance.
GST 5 Percent Items List
The 5% GST rate is applicable to essential goods and services that are widely used across the country. Some notable products and services in this category include:
- Basic food items such as edible oil, sugar, and tea
- Household necessities like coal and kerosene
- Transport services including rail and economy-class air travel
- Books and newspapers (excluding e-books)
- Footwear (up to Rs. 1,000 per pair)
- Economy hotels and restaurants
The 5% GST rate ensures affordability for basic goods while maintaining revenue generation for the government.
Highest GST Rate in India
The highest GST rate in India is 28%, which is applicable to luxury and sin goods. Items under this category include:
- Luxury cars and SUVs
- Tobacco products and cigarettes
- Aerated drinks and carbonated beverages
- Fireworks and betting-related services
- High-end consumer goods like refrigerators, washing machines, and air conditioners
Apart from the 28% GST, some of these products also attract an additional compensation cess to discourage excessive consumption and environmental harm.
Conclusion
The GST rate of India is structured to ensure fair taxation while keeping essential goods affordable. Understanding the different GST slabs helps businesses and consumers make informed financial decisions. If you want to calculate the GST on various products, use our GST Calculator to simplify your tax calculations.
Frequently Asked Questions (FAQs)
India has five GST slabs: 0%, 5%, 12%, 18%, and 28%.
Yes, rates on some food items and medical treatments were revised in late 2024.
Most services fall under the 18% GST slab, while essential services are exempt.
Yes, healthcare, education, fresh food, and public transport are exempt.
Small businesses can opt for the Composition Scheme and pay lower GST rates.
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