GST Rates in 2026 Explained (After GST 2.0)

GST 2.0 simplified India's rate structure. Instead of juggling several middle slabs, most goods and services now fall into a cleaner set of rates. If you invoice customers, you need to know which one applies — charge too little and you carry the shortfall; too much and you overcharge your customer. Here's the 2026 picture in plain terms.

The 2026 GST slabs

• 0% (exempt / nil-rated) — essential items such as many unbranded food staples, and certain services. No GST is charged, and you issue a bill of supply rather than a tax invoice for purely exempt supplies.
• 5% — the “merit” rate for mass-consumption goods and several services.
• 18% — the standard rate that applies to the large majority of goods and services.
• 40% — the “demerit / luxury” rate for a small set of items such as tobacco, aerated drinks and other sin or luxury goods.

How the tax splits: CGST, SGST, IGST

The slab is only half the story. Whatever the rate, how it's collected depends on where the supply goes. Within the same state, an 18% supply is split into 9% CGST + 9% SGST. Across states, the full 18% is charged as IGST. Our CGST vs SGST vs IGST guide explains why, and the GST calculator shows the breakup instantly.

How to find the right rate for your product

Rates are tied to HSN codes (for goods) and SAC codes (for services). To get it right:

1. Identify the correct HSN/SAC code for what you sell.
2. Look up the notified rate for that code on the official GST rate finder.
3. Apply it consistently across invoices — and re-check periodically, as rates are revised in council meetings.

Inclusive vs exclusive pricing

Decide whether your listed price includes GST or not, and say so on the invoice. If a ₹1,000 price is GST-exclusive at 18%, you add ₹180 and bill ₹1,180. If ₹1,180 is GST-inclusive, it already contains ₹180 of tax on a ₹1,000 base. The GST calculator handles both directions.

A note on accuracy

GST rates and slab boundaries change through council decisions, and a few categories carry conditions or a compensation cess on top. Treat this guide as an overview, confirm the current rate for your specific HSN/SAC before you bill, and when in doubt, ask your accountant. To turn the right rate into a compliant bill, use the invoice generator, which supports the 0/5/18/40% slabs out of the box.