GST rates in 2026, and what falls under each
Since GST 2.0 took effect on 22 September 2025, most goods are taxed at 5% or 18%, with 40% for a short list of luxury and harmful goods and special rates for precious metals and stones. The count is the number of entries in the rate notifications at that rate; a single entry can cover anything from one product to a whole chapter.
| GST | Entries | Includes |
|---|---|---|
| Nil | 172 | Fresh milk, paneer, fresh vegetables, puja samagri, 37 life-saving drugs |
| 0.25% | 3 | Rough diamonds |
| 1.5% | 2 | Cut and polished diamonds |
| 3% | 15 | Gold, silver and jewellery |
| 5% | 516 | Butter, ghee, cheese, packaged rice, tea, sugar, soap, toothpaste, most medicines, clothing and footwear up to ₹2,500 |
| 12% | 4 | Bricks and roofing tiles (a separate notification) |
| 18% | 641 | Cement, small cars, motorcycles up to 350 cc, mobile phones, laptops, TVs, ACs, and anything not listed elsewhere |
| 40% | 19 | Large cars, motorcycles above 350 cc, aerated drinks, cigarettes, pan masala and tobacco |
Services follow their own notification: restaurants outside hotels and hotel rooms up to ₹7,500 a night pay 5% without input tax credit, most professional, IT and courier services pay 18%, and casinos, race clubs and similar pay 40%.
Why one code can have more than one rate
The rate notifications name goods by description and point to codes, not the other way round. So a code is where to start, and the description is what decides. Two examples from the finder:
- 0406, cheese: Nil or 5%. Cheese is taxed at 5%, but paneer and chena, which sit in the same heading, are exempt.
- 8703 22 91, motor cars: 5%, 18% or 40%. Small petrol, CNG and diesel cars within the length and engine limits pay 18%, larger cars 40%, and electric cars 5%.
When you invoice, use the code that matches your goods and the rate of the entry whose words fit them. If two entries could both fit, the more specific one applies.
What changed after September 2025
- 1 February 2026: the old 28% schedule, which held 6 tobacco and pan masala entries, was removed. Pan masala, cigarettes and other tobacco products moved to 40% (6 new entries), biris to 18%, and compensation cess on them ended.
- 1 May 2026: new tariff items for some beverages under 2202 99, created by the Finance Act 2026, replaced the old ones in the schedules. No rate changed.
Goods taxed by description, whatever their code
A few entries name no code at all, or “any chapter”, so a code search alone will not find them. If what you sell fits one of these, its rate applies:
| GST | Goods |
|---|---|
| 5% | All Drugs and medicines including their salts and esters and diagnostic test kits; formulations manufactured from bulk drugs [other than those specified at… |
| 5% | The following goods, namely: — a. Cement Bonded Particle Board; b. Jute Particle Board; c. Rice Husk Board; d. Glass-fibre Reinforced Gypsum Board (GRG) e.… |
| 5% | Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and… |
| 5% | Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907 |
| 5% | Artificial kidney |
| 5% | Blood glucose monitoring system (Glucometer) and test strips |
| 5% | Patent Ductus Arteriosus / Atrial Septal Defect occlusion device |
| 5% | Parts of the following goods, namely: - (i) Crutches; (ii) Wheel chairs; (iii)Walking frames; (iv)Tricycles; (v)Braillers; and (vi) Artificial limbs |
| 5% | Assistive devices, rehabilitation aids and other goods for disabled, specified in List 1 appended to this Schedule |
| 5% | Rosaries, prayer beads or Hawan samagri |
| 5% | Biomass briquettes or solid bio fuel pellets |
| 18% | Resin bonded bamboo mat board, with or without veneer in between; Bamboo flooring tiles |
| 18% | Permanent transfer of Intellectual Property (IP) right |
| 18% | Supply of any goods other than capital goods and cement falling under chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of… |
| 40% | Specified actionable claim; Explanation: "specified actionable claim" as defined in section 2(102A) of the CGST Act, 2017 means the actionable claim… |
| Nil | Drugs or medicines listed in Annexure I |
| Nil | Puja samagri namely:- (i) Rudraksha, rudraksha mala, tulsi kanthi mala, panchgavya (mixture of cowdung, desi ghee, milk and curd); (ii) Sacred thread… |
| Nil | Supply of lottery by any person other than State Government, Union Territory or Local authority subject to the condition that the supply of such lottery has… |
| Nil | Supply of goods by a Government entity to Central Government, State Government, Union Territory, local authority or any person specified by Central… |
| Nil | Parts for manufacture of hearing aids |
| Nil | Rakhi (other than those made of goods falling under Chapter 71) |
| Nil | Supply of gift items received by the President, Prime Minister, Governor or Chief Minister of any State or Union territory, or any public servant, by way of… |
Putting the code on your invoice
Businesses with turnover up to ₹5 crore must show at least 4 digits of the HSN or SAC code on invoices to registered buyers; above ₹5 crore, 6 digits on every invoice. The GST invoice generator and quotation generator check this for you, and the GST calculator adds or removes the tax from any price.
Frequently asked questions
What is an HSN code?
HSN stands for Harmonised System of Nomenclature, the international product classification maintained by the World Customs Organization. India’s customs tariff extends it to eight digits, and GST uses the same codes: the first two digits are the chapter, four the heading, six the sub-heading and eight the tariff item.
What is a SAC code?
SAC, the Services Accounting Code, is the GST classification for services. Every SAC starts with 99 and has six digits; for example 9963 covers accommodation and food services and 998314 IT consulting.
How many digits of HSN do I need on an invoice?
If your turnover in the previous year was up to ₹5 crore, show at least 4 digits on invoices to registered buyers; for sales to consumers it is optional. Above ₹5 crore, show 6 digits on every invoice.
Why does the finder show more than one rate for a code?
Because GST rates are notified by description, not by code alone. One heading can be split by what the goods are, their value, whether they are packaged, or who buys them. The code tells you which entries to read; the description of what you actually sell decides between them.
My product is not named anywhere. What rate applies?
Goods not named in any schedule fall under the catch-all entry in Schedule II and are taxed at 18%. Services not named are also taxed at 18%. Check the entries that apply by description first, since some goods are listed without a code.
Are these rates up to date?
They are the rates in force on 21 September 2026: the GST 2.0 schedules from 22 September 2025, the tobacco and pan masala changes from 1 February 2026 and the tariff-item update of 1 May 2026. Each result shows the notification it comes from and the date it took effect.
Sources
- GST portal – HSN/SAC master (HSN_SAC.xlsx)
- CBIC – Notification 9/2025-Central Tax (Rate): goods rate schedules
- CBIC – Notification 10/2025-Central Tax (Rate): exempt goods
- CBIC – Notification 19/2025-Central Tax (Rate): tobacco and pan masala from 1 February 2026
- CBIC – Notification 11/2017-Central Tax (Rate), as amended to 15/2025: services
- GST Council
Codes and rates checked against the GST portal and CBIC on 21 September 2026. Concessional rates that apply only under conditions (such as for specific projects or buyers), service exemptions and reverse charge are not covered. Classification is decided by the notification text; for a large or unusual supply, confirm it with a tax professional. See our disclaimer.