GST (Goods and Services Tax) rates and slabs significantly impact your product’s pricing and profitability, as well as your business’s cash flow and competitiveness. This is why GST rate identification is important for businesses. A GST rate finder tool not only identifies GST tax rates accurately, but also helps in error-free filings.

The online tool allows you to search for the slab from the GST slab list and HSN (Harmonised System of Nomenclature) codes. In this blog, we will understand the different GST tax slabs in India and how you can find the accurate one using the GST rate finder tool.

GST Slab Structure in India (Old and New)

The Goods and Services Tax (GST) was introduced in India on July 1, 2017. When GST was introduced, it had 5 major tax slabs, namely 0%, 5%, 12%, 18%, and 28%, with some special rates and exemptions on some goods and services.

Under the GST 2.0, the government of India has changed and introduced the new GST slab list. These new slabs were implemented on September 22, 2025.

Tax Slab	Description
Nil (0%)	For essential items like milk products, medicines, and study materials.
5%	For essentials like food products, agricultural equipment, and health items.
18%	The new standard rate for most goods and services.
40%	For products like pan masala, aerated water, luxury cars, and private aircraft.

Also read: GST on Personal Loans

GST Slab Structure with Examples

Here are a few examples of GST tax rates in India:

0% GST (Nil/Exempt)

• Educational Supplies and Materials: Atlases, maps, pencils, notebooks, and exam papers.
• Vital Healthcare: Medicines, vaccines, and dialysis machines.
• Everyday Use Items: Fresh milk, curd, and certain vegetables and fruits.

5% GST

• Dairy Products: Butter, ghee, cheese, and processed dairy.
• Agricultural products: Tractors, irrigation pumps, bio-pesticides, and organic manure.
• Essential Services: Goods and passenger rail transport (excluding luxury classes), economy air transport, and some renewable energy equipment.

18% GST

• Electronics and Appliances: Televisions, washing machines, refrigerators, and air conditioners.
• Automobiles: Motorcycles with up to 350cc capacity, hatchback cars, and electric vehicles fall in the 18% standard rate.
• Construction and Infrastructure Materials: Cement, paints, and electrical fittings.
• Services: IT consultancy services, telecommunication services, and banking services.

40% GST

• Luxury Goods: Luxury SUVs, private yachts, private aircraft, and luxury cars.
• Demerit Goods: Tobacco, pan masala, gutkha, etc.
• Gaming and Entertainment: Online gambling websites, betting on horse racing, and casinos.
• Aerated Beverages: Flavoured water-based drinks, energy drinks, and soft drinks.

How to Use the GST Rate Finder Tool?

The HSN code is the abbreviation of the Harmonised System of Nomenclature. It is a 6-digit standardised code that categorises 5000+ products. SAC, on the other hand, stands for Services Accounting Code, a six-digit code that identifies and classifies different types of services. Here is how you can use the GST rate finder tool:

• Visit the official GST HSN search page.
• Search HSN to search goods or SAC to search services.
• Type in the name or keyword of the product or service in the search box.
• Click on the Search button to obtain a list of matching HSN or SAC codes and descriptions.
• Check the findings to identify the specific code that corresponds to your product or service.
• Click on the code for more information, such as the GST rate to be used and other notices.
• Use the information to ensure that invoices and returns are properly applied to GST.

Recent Updates in GST Rates (2025)

The 56th GST Council meeting introduced GST 2.0. The reforms, which came into effect on September 22, 2025, are the largest restructuring of the Indian Goods and Services Tax system since its establishment in 2017. Here’s a complete summary of the changes:

• Simplification of Slabs: Earlier, there were five slabs (0%, 5%, 12%, 18%, 28%). The new system merges 12% and 28% into two simple brackets: 18% (normal) and 40% (luxury/sin goods).
• Exemptions Widened: Health and life insurance premiums, textbooks, and certain dairy items are now exempted. This reduces the household budget burden and encourages essential services such as education and health.
• Reduced Rates for Consumers: Compact cars, motorcycles, and household items have been moved from the 28% to the 18% slab.
• Luxuries Taxed More: The 40% slab is for high-end commodities and services. Some of those are as follows:
  • Pan masala, gutkha, and other tobacco products
  • Aerated drinks and caffeinated products
  • Luxury cars, yachts, and private aircraft
  • Casino, betting, and horse racing
• Support for Agriculture and MSMEs: Fertilisers, bio-pesticides, and farm machines are taxed at 5% to help farmers.
• Revenue Implications: The administration anticipates that the masses will respond to lower prices by increasing their consumption of mass-consumption items, and thus, revenues lost will be offset.

The GST slab structure and the ability to determine the GST rates are important for both businesses and individuals. It helps in correct invoicing, adherence to tax laws, and proper financial planning. GST rate finder tool proves useful here as it makes taxation easier and minimises the mistakes in invoicing. You can easily check the GST HSN code rates using the tool.

Frequently Asked Questions (FAQs)

1. What is the GST rate finder tool?

GST rate finder is an online tool that helps businesses and individuals in determining the right GST rates to apply to their goods or services.

2. What is the HSN code in GST?

The HSN (Harmonised System of Nomenclature) code is a 6-digit code assigned to every category of products all over the world. It is introduced to make sure that there’s no confusion about any product’s tax rates.

3. What is the SAC code in GST?

SAC (Service Accounting Code) is also like the HSN code, but instead of products, it is used to classify services.

4. How many slabs are there for GST in 2025?

After the latest GST 2.0 regime, there are now three major taxable slabs: 5%, 18%, and 40%. Apart from these, there are also slabs with 0% GST (Nil/Exempt).

5. Are health and life insurance goods charged GST?

No, after the latest GST 2.0 system, life and health insurance are GST-free.

6. What commodities have a 40% GST?

Commodities such as pan masala, tobacco, aerated water, luxury vehicles, yachts, and casinos have a 40% GST.

7. Has GST on electrical appliances been reduced?

Yes, electrical appliances such as air conditioners, televisions, and washing machines now come under 18% from the previous 28%.

8. Where do I get the latest GST news?

The GST Council posts updates from time to time, and those get updated in the GST rate finder too.

9. What is the Nil rate in GST?

The Nil rate is 0% GST. These include items such as dairy products, study material, and certain medicines.

10. Why were GST slabs simplified in 2025?

The slabs were made simpler to avoid confusion, simplify compliance, and ensure fair taxation of different kinds of goods and services.