GST in India has five main rate slabs: 0%, 5%, 12%, 18%, and 28%. Here is a comprehensive, category-wise breakdown of GST rates applicable in 2026, based on the latest GST Council recommendations.
0% GST (Exempt / Nil Rated)
- Essential food items: rice, wheat, atta (flour), pulses, milk, eggs, fresh vegetables and fruits
- Educational services: school/college fees (government and aided institutions)
- Healthcare services: hospital services, medicines (basic), ambulance
- Agricultural services: crop cultivation, harvesting, supply of farm labour
- Government services: services provided by governments to public
- Exports (zero-rated — GST paid on inputs is refundable)
5% GST Slab
- Packaged food items: branded cereals, namkeen, processed food
- Medicines and pharmaceuticals (most common drugs)
- Transport services: railways, air travel (economy class), taxi aggregators (Ola/Uber)
- Restaurants under composition scheme, takeaway food up to ₹7,500/person
- Textile fabrics, yarn, apparel below ₹1,000
- Coal, lignite, charcoal
12% GST Slab
- Business class air travel
- Hotels (room tariff ₹1,001–₹7,500/night)
- Construction services for affordable housing
- Solar panels, solar water heaters
- Packaged dry fruits
- Mobile phones (smartphones)
- Ayurvedic and homeopathic medicines
18% GST Slab (Most Common)
- IT services and software development (SAC 998314)
- Professional services: CA, legal, consulting, marketing, advertising
- Hotels (tariff above ₹7,500/night)
- Restaurants with AC/liquor licence
- Capital goods and machinery
- Telecom services (mobile/internet)
- Financial services (banking, insurance, brokerage)
- Construction materials (cement, steel, tiles)
28% GST Slab
- Luxury goods: automobiles, motorcycles above 350cc, yachts
- Aerated drinks and beverages (with additional cess)
- Tobacco products, pan masala, cigarettes (with cess)
- Casinos, online gaming (28% on full face value from Oct 2023)
- Air conditioners, large TVs (above 32 inches)
- Paint, varnish, putty, polishes
GST on Services: Key SAC Codes
| Service | SAC Code | GST Rate |
|---|---|---|
| IT Software Services | 998313/998314 | 18% |
| CA/Accounting Services | 998221 | 18% |
| Legal Services (to businesses) | 998211 | 18% |
| Construction (affordable housing) | 995411 | 12% |
| Restaurant (non-AC, non-liquor) | 996331 | 5% |
| Healthcare (hospitals) | 999311 | 0% |
| Education (school/college) | 999210 | 0% |
| Transport by road (goods) | 996511 | 5% |
Note: Reverse Charge Mechanism (RCM): For services from unregistered suppliers, the recipient (registered business) must pay GST under reverse charge. Common RCM services include: legal services from advocates, GTA transport, import of services.