What are the new GST rates under GST 2.0?

GST 2.0, effective September 22, 2025, simplified India's GST to four primary slabs: 0% (exempt essentials), 5% (daily-use goods, medicines, EVs), 18% (standard rate for electronics, services, cement, small cars), and 40% (luxury and sin goods — premium cars, aerated drinks, tobacco). The old 12% and 28% slabs have been eliminated. Special rates of 3% (gold/silver) and 0.25% (rough diamonds) continue.

What is the difference between CGST, SGST, and IGST?

GST is collected in two forms depending on the transaction type. For intra-state transactions (buyer and seller in the same state), the GST is split equally between CGST (collected by Central Government) and SGST (collected by State Government). For inter-state transactions, a single IGST is levied and collected by the Central Government, which then shares the state's portion with the destination state.

What is the GST registration threshold in India?

GST registration is mandatory for businesses whose aggregate annual turnover exceeds ₹40 lakh for goods and ₹20 lakh for services. For businesses in special category states (North-Eastern states, hill states), the threshold is ₹20 lakh for goods and ₹10 lakh for services. Voluntary registration is allowed below these thresholds, which can be beneficial for claiming input tax credit.

What is Input Tax Credit (ITC) under GST?

Input Tax Credit allows GST-registered businesses to offset the GST paid on inputs (purchases) against the GST collected on outputs (sales). This ensures GST is effectively paid only on the value added at each stage of the supply chain. For example, if a manufacturer pays ₹1,800 GST on raw materials and collects ₹3,600 GST on finished goods, they pay only ₹1,800 to the government.

What changed with GST 2.0 in September 2025?

The 56th GST Council Meeting on September 3, 2025, announced GST 2.0 effective September 22, 2025. The 12% slab was abolished — 99% of its items moved to 5%. The 28% slab was largely eliminated — 90% of items moved to 18%. A new 40% slab was created for luxury and sin goods, replacing the old 28% + compensation cess structure. Personal health and life insurance became fully exempt. Electronics, cement, small cars, and household appliances moved from 28% to 18%.

India GST Calculator 2025 — GST 2.0

India's GST system underwent its biggest reform since launch on September 22, 2025 — the 56th GST Council Meeting announced GST 2.0, simplifying the tax structure from the old 0/5/12/18/28% slabs to a cleaner framework of 0%, 5%, 18%, and 40%. The 12% slab was eliminated (99% of items moved to 5%), ...

GST CALCULATOR

Calculate

Transaction Type

GST Rate (GST 2.0)

Taxable Value (before GST)

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LIVE DIAGRAM

Enter an amount to see the GST breakdown

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GST 2.0 RATE STRUCTURE

Effective September 22, 2025 — 56th GST Council Meeting

RATE	CATEGORY	EXAMPLES	INTRA-STATE	INTER-STATE
0%	Nil (0%) Exempt supplies	Fresh fruits & vegetables, milk, eggs, bread, salt, books, newspapers, education, healthcare	No tax	No tax
5%	Merit Rate (5%) Essentials & daily-use goods	Packaged food, medicines, hair oil, soap, footwear, EVs, hotel stays ≤₹7,500/day, gyms, salons	CGST 2.5% + SGST 2.5%	IGST 5%
18%	Standard Rate (18%) Most goods & services	Electronics (TV, AC, laptop), restaurants, telecom, banking, cement, small cars & bikes <350cc	CGST 9% + SGST 9%	IGST 18%
40%	De-merit Rate (40%) Luxury & sin goods	Premium cars & SUVs, bikes >350cc, aerated drinks, tobacco, yachts, private jets, pan masala	CGST 20% + SGST 20%	IGST 40%
3%	Special — Gold	Gold, silver, precious metals	CGST 1.5% + SGST 1.5%	IGST 3%

Source: CBIC — 56th GST Council Meeting (Sep 3, 2025) · Effective Sep 22, 2025 · Registration threshold: ₹40 lakh (goods), ₹20 lakh (services)

HOW TO USE

1
Choose Add GST (to calculate total from taxable value) or Remove GST (to find taxable value from a GST-inclusive price).
2
Select Intra-State (within the same state → CGST + SGST) or Inter-State (across states or imports → IGST).
3
Select the GST rate: 0% for exempt goods, 5% for essentials, 18% for most goods and services, 40% for luxury/sin goods.
4
Enter the amount and see taxable value, GST, total, and the CGST/SGST or IGST breakdown instantly.

WORKED EXAMPLE

Intra-state sale: Software services ₹50,000 at 18% GST. CGST = ₹50,000 × 9% = ₹4,500. SGST = ₹50,000 × 9% = ₹4,500. Total GST = ₹9,000. Invoice total = ₹59,000. Inter-state sale: Same ₹50,000 software sold across states. IGST = ₹50,000 × 18% = ₹9,000. Invoice total = ₹59,000. Remove GST: Customer paid ₹59,000 inclusive of 18% GST. Taxable value = ₹59,000 ÷ 1.18 = ₹50,000. GST = ₹9,000. Gold: ₹1,00,000 gold jewellery at 3%. CGST = ₹1,500. SGST = ₹1,500. Total = ₹1,03,000.

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GST 2.0 · 56th GST Council Meeting · Effective September 22, 2025 · For informational purposes only · Verify HSN/SAC code classification with a tax professional · Last updated: 25 April 2026