GST rates in India for 2026
India charges GST at a standard rate of 18%, with a reduced rate of 5%. Other rates in use: 40% (luxury & sin goods). Amounts on this page are in Indian Rupee (INR).
GST 2.0 reshaped the slabs on 22 September 2025: the 12% and 28% bands were abolished, leaving 0%, 5% and 18% plus a 40% band for luxury and sin goods. Everyday items sit at 5%, most durables and services at 18%. Individual life and health insurance premiums dropped to 0%.
| Rate | Type | Gross = net × | Tax share of the gross price |
|---|---|---|---|
| 18% | standard | 1.18 | 15.25% |
| 5% | reduced | 1.05 | 4.76% |
| 40% | luxury & sin goods | 1.4 | 28.57% |
How much GST is inside a price
If a price already includes GST, divide by 1 plus the rate: at 40%, ₹9,000 ÷ 1.4 = ₹6,428.57 before tax, so ₹2,571.43 is tax.
| Rate | Tax in ₹9,000 | Net of ₹9,000 | Tax in ₹90,000 | Net of ₹90,000 |
|---|---|---|---|---|
| 18% | ₹1,372.88 | ₹7,627.12 | ₹13,728.81 | ₹76,271.19 |
| 5% | ₹428.57 | ₹8,571.43 | ₹4,285.71 | ₹85,714.29 |
| 40% | ₹2,571.43 | ₹6,428.57 | ₹25,714.29 | ₹64,285.71 |
Adding GST to a net amount
For a quote or invoice, multiply the net amount by 1 plus the rate: at 5%, ₹90,000 × 1.05 = ₹94,500.
| Rate | Tax on ₹9,000 | ₹9,000 plus tax | Tax on ₹90,000 | ₹90,000 plus tax |
|---|---|---|---|---|
| 18% | ₹1,620 | ₹10,620 | ₹16,200 | ₹106,200 |
| 5% | ₹450 | ₹9,450 | ₹4,500 | ₹94,500 |
| 40% | ₹3,600 | ₹12,600 | ₹36,000 | ₹126,000 |
How India's standard rate compares
India's 18% standard rate compares with a median of 18%: 17 of the 39 countries in this calculator's table charge more, 19 less. Its lowest rate above zero is 5%: 7 countries go lower, and 23 have no rate that low.
Israel and Peru also charge 18% as standard.
5% is also used by Taiwan, Vietnam, the United Kingdom, Italy, Poland, the United Arab Emirates, Egypt, Canada, and Colombia. No other country in the table uses 40%.