GOODS AND SERVICE TAXES RATES IN INDIA | GST TAX RATES | INDIA | COMBINED GST RATES | 2026 | GSTJ’S | 9TH EDITION |
PART I – YELLOW PAGES:
- TRADE-WISE CLASSIFICATION OF COMMODITIES AND APPLICABLE TAX RATES.
- COMPOSITION LEVY.
- COMPOSTION SCHEME FOR SMALL SERVICE PROVIDERS.
- GST COMPENSATION CESS RATES FOR DIFFERENT SUPPLIES.
- TAX UNDER REVERSE CHARGE ON CERTAIN SUPPLIES.
- LIST OF HANDICRAFT GOODS TAXABLE AT REDUCED RATE OF TAX.
- IMPORTANT NOTOFICATIONS.
PART II – WHITE PAGES:
- SCHEDULE OF GOODS EXEMPTED FROM GST.
- GST RATE SCHEDULES FOR GOODS ( I, II, III, IV, V , VI AND VII).
PART III – PINK PAGES:
- GST RATE SCHEDULE FOR SERVICES.
- SERVICE TAX UNDER REVERSE CHARGE.
- SERVICE TAX EXEMPTIONS.
- GST COMPENSATION CESS RATES FOR CERTAIN SERVICES.
- IMPORTANT NOTIFICATIONS.
GST
The Goods and Services Tax (GST) is an indirect tax introduced in India on 1 July 2017, replacing a range of pre-existing taxes like VAT, service tax, central excise duty, entertainment tax, and octroi. GST unified the country’s tax structure, simplifying the taxation of goods and services and eliminating the need for multiple taxes previously levied by both central and state governments.
GST is a comprehensive, multistage, and destination-based tax. It is considered comprehensive because it has replaced most indirect taxes, with a few exceptions for state taxes. The tax is multi-staged as it is levied at every stage of the production process, but is refunded to all parties involved, except the final consumer. Its destination-based nature means that the tax is collected at the point of consumption, rather than at the point of origin, marking a significant departure from previous tax systems.
The tax came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment to the Constitution of India by the Government of India. 1 July is celebrated as GST Day.[1]
GST was initially structured with multiple tax slabs—0%, 5%, 12%, 18%, 28%, and 40%. However, certain goods such as petroleum products, alcoholic beverages, and electricity were excluded from GST and continued to be taxed separately by state governments under the previous tax system.[2] Additionally, specific items like rough precious and semi-precious stones attracted a special rate of 0.25%, while gold was taxed at 3%.[3] A cess of 22% or other rates applied on top of the 28% GST for certain luxury items such as aerated drinks, luxury cars, and tobacco products.[4] Preceding the implementation of GST, the statutory tax rate for most goods was approximately 26.5%, with post-GST rates generally falling in the 18% range.
In a move to stimulate consumption amidst lagging consumer spending and stagnant wages and to mitigate the potential impact of tariffs imposed by the second Trump administration, the Indian government announced a significant reduction in GST rates on several goods on 3 September 2025. These changes, which came into effect on 22 September 2025, reduced the number of GST slabs from six to three, consolidating them into just two primary rates: 5% and 18%. This restructuring aimed to simplify the tax system and make goods more affordable to consumers.[5]
The tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers of the central government and all the states. The establishment of the GST, or, more precisely, its implementation, has received significant criticism.[6][7] Positive outcomes of the GST includes the reduction in travel time in interstate movement, which the Ministry of Road Transport and Highways claims dropped by 20% owing to the disbanding of interstate check posts.[8].
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