Under GST 2.0, in force from 22 September 2025, most items from the old 12% and 28% rates moved to 5% or 18%, and a 40% rate was created for some luxury and harmful goods.
| Rate | Examples (general) |
|---|---|
| 0% | Fresh fruit and vegetables, milk, bread, individual health and life insurance, many essential medicines, notebooks and pencils |
| 3% | Gold, silver, jewellery |
| 5% | Butter, ghee, packaged namkeen, shampoo, cooking oil, tractors |
| 18% | Most goods and services: ACs, TVs above 32 inches, small cars, cement, mobile phones |
| 40% | Soft drinks, large cars, bikes above 350cc, yachts |
Working out the bill
₹50,000 AC (18%): GST ₹9,000, total ₹59,000. On a purchase within the state, the bill shows ₹4,500 CGST + ₹4,500 SGST.
In reverse: if something costs ₹1,180 including GST at 18%, the base price = 1,180 ÷ 1.18 = ₹1,000 and GST is ₹180.
Keep in mind
- The exact rate of an item depends on its HSN code; the list above is only examples.
- The government will notify the date of the rate change for pan masala and tobacco products separately.
- On jewellery, 3% applies to the gold and a different rate may apply to making charges; read the bill carefully.
Source: general information based on the GST 2.0 notifications (September 2025). For official rates see the GST portal or CBIC.
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Frequently asked questions
Do I pay GST on top of the MRP?
No. The MRP includes all taxes, and a shop cannot charge more than the MRP.
CGST-SGST or IGST on online purchases?
If the seller ships from another state, IGST applies; from the same state, CGST + SGST. The total stays the same.