Rate structure rationalised
The 56th GST Council reforms broadly replaced the earlier four-rate structure with two principal rates: 5% merit and 18% standard, with a 40% special rate for specified supplies.
Rate verification is essential: GST liability depends on the exact HSN/SAC classification, description, conditions, exemptions and effective date. Council recommendations do not by themselves replace the operative notification. Always verify the applicable CBIC notification/rate schedule before acting.
Major GST Changes Now Relevant
Key reforms reflected in official GST Council and Government material.
Major goods and services reductions
Several household goods, food products, medicines, medical devices, agricultural items, textiles and other specified supplies moved to lower or nil rates under the notified reforms.
Individual insurance relief
GST was exempted for specified individual life and health insurance policies and their reinsurance under the reform package, subject to the applicable notifications.
Tobacco and pan-masala regime revised
Specified tobacco and pan-masala products moved to revised GST rates, while the compensation cess on specified products was withdrawn through notifications effective from 1 February 2026.
CGST Act, 2017 remains the core statute
GST continues to operate through the CGST, IGST, UTGST and State GST framework, read with rules, notifications, circulars, orders and judicial decisions as amended from time to time.
Use GST Portal for filings
Registration, returns, payments, refunds, ledgers and taxpayer services should be accessed through the official GST Portal and the latest portal advisories.
GST Law in India: Key Provisions and Compliance
Goods and Services Tax (GST) is an indirect tax on taxable supplies of goods and services. Intra-State supplies generally attract Central GST (CGST) and State GST (SGST) or Union Territory GST (UTGST), while inter-State supplies and imports generally attract Integrated GST (IGST). The actual tax rate, exemptions, place of supply and eligibility for input tax credit depend on the law and notifications applicable to the transaction.
Important sections of the CGST Act, 2017
- Section 7 - Scope of supply: identifies transactions treated as a supply for GST purposes, read with relevant schedules.
- Section 9 - Levy and collection: provides for levy of CGST on intra-State taxable supplies, subject to statutory exceptions and notified rates.
- Section 16 - Input tax credit: sets conditions for registered persons to claim eligible credit of input tax, subject to restrictions and amendments.
- Section 22 - Registration: sets the general registration liability based on aggregate turnover and applicable thresholds and exceptions.
- Section 31 - Tax invoice: governs issue of tax invoices and related documents.
- Section 39 - Returns: addresses furnishing of returns by prescribed categories of registered persons.
- Section 54 - Refunds: governs claims for refund of tax, interest and other amounts, subject to applicable conditions and time limits.
IGST Act, 2017: Section 5 concerns levy of IGST; Sections 7 and 8 distinguish inter-State and intra-State supplies, while place-of-supply provisions determine the relevant tax treatment.
How to check the correct GST rate
- Identify the goods' HSN classification or services' SAC classification.
- Check the relevant rate and exemption notifications, including amendments and effective dates.
- Determine whether the supply is intra-State or inter-State and whether reverse charge applies.
- Check any conditions, valuation rules, special schemes and input tax credit restrictions.
- Consult the official GST Portal and CBIC circulars for procedural updates.
The GST Council makes recommendations under Article 279A of the Constitution. The applicable legal position must be checked against enacted law and operative notifications; a Council recommendation alone is not a substitute for a notified rate.
Official legislation and updates: CBIC GST, GST Portal, GST Council and India Code.
Official GST Law, Rates and Update Links
Use these primary sources for current legal text, rates, notifications, circulars and Council decisions.
GST Portal
Registration, returns, payments, refunds, taxpayer services and portal advisories.
Open official source ↗CBIC GST
Central GST law, rules, notifications, circulars, orders and rate information.
Open official source ↗GST Goods and Services Rates
Official CBIC rate finder and schedule reference.
Open official source ↗GST Council
Council meetings, recommendations, FAQs, newsletters and institutional information.
Open official source ↗56th GST Council Recommendations
Official recommendations covering the major 2025 rate rationalisation.
Open official source ↗India Code - CGST Act
Central Goods and Services Tax Act, 2017 on the official India Code portal.
Open official source ↗Understanding GST Rates in 2026
The old 0%, 3%, 5%, 12%, 18% and 28% lists on this site were created under the earlier rate structure.
Are the old 12% and 28% LawDadi lists still current?
No. Those pages are retained as historical material. The 2025 rationalisation substantially changed the rate structure and many product rates. Check the current CBIC notification and HSN/SAC classification.
Is every taxable item now either 5% or 18%?
No. The rationalised structure has 5% and 18% as its main rates, but nil/exempt supplies and a special 40% rate for specified supplies exist, along with product-specific treatment and conditions.
Did the 2025 changes apply immediately after the GST Council meeting?
The principal rate changes for goods and services took effect from 22 September 2025 through the relevant legal mechanism. Specified tobacco-related products followed a separate transition and were revised from 1 February 2026.
How should a taxpayer find the exact rate?
Identify the correct HSN or SAC, read the current rate notification and amendments, check exemption notifications and conditions, and verify any relevant CBIC clarification or judicial ruling.
Historical GST Rate and Council Archive
These LawDadi pages cover older rate schedules and changes, primarily from 2017 and 2018. They are retained for historical research and internal-link continuity.
- Zero GST Goods Code 101 to 1100Archive
- Zero GST Goods code 1200 to 9800Archive
- 3% GST Goods, List of ItemsArchive
- 5% GST Items Code 0202 to 1201Archive
- 5% GST Items Code 1205 to 2605Archive
- 5% GST Items Code 2606 to 8437Archive
- 5% GST Items Code 8504 to 9804Archive
- 12% GST Goods Code 101 to 3900Archive
- 12% GST Goods Code 3923 to 5809Archive
- 12% GST Goods Code 5810 to 8608Archive
- 12% GST Goods Code 8701 to 9804Archive
- 18% GST Items Code 1107 to 3407Archive
- 18% GST Items Code 3501 to 4201Archive
- 18% GST Items Code 4202 to 6406Archive
- 18% GST Items Code 6501 to 7020Archive
- 18% GST Items Code 7201 to 7907Archive
- 18% GST Items Code 8001 to 8439Archive
- 18% GST Items Code 8001 to 8439Archive
- 18% GST Items Code 9001 to 9802Archive
- 28% GST Goods Item ListArchive
- GST of Handicraft items reduced w.e.f 26.07.2018Archive
- GST reduced from 28% to 18%Archive
- GST reduced from 28% to 18%Archive
- GST reduced from 18% to 12%Archive
- GST reduced from 18% to 5%Archive
- GST reduced from 12% to 5%Archive
- GST increased from 12 to 18%Archive
- GST increased from 0 to 5%Archive
- GST reduced from 5% to 0.25%Archive
- Change in Compensation CessArchive
- Change in IGST Rate on 18.1.2018Archive
- Modification in definitions GST / IGSTArchive
- Goods proposed to reduce GST from 28% to 18% on 10.11.2017Archive
- Goods on GST retained 28% proposed by GST Council on 10.11.2017Archive
- List of Goods on GST Reduced to 12%, 5% or 0%Archive
- List of goods for IGST Rate reduction recommended by GST CouncilArchive
General information only. GST rates and exemptions may change through notifications and amendments. Verify the current statutory provision, notification, circular and official portal guidance applicable on the date of supply.