GST slabs in 2026
India rationalised GST in September 2025: the old 12% and 28% slabs were folded away, leaving two main rates — 5% for essentials and merit goods, and 18% as the standard rate for most goods and services. A 40% rate applies to luxury and sin goods (premium cars, tobacco, aerated drinks), and special rates continue for bullion: 3% on gold, silver and jewellery, 0.25% on rough diamonds. Basic food staples, education and healthcare remain at 0%.
Pick the slab that applies to your goods or service above and the calculator shows the tax and the invoice total instantly. If you are billing across state lines, switch on IGST to see the tax as one line instead of the CGST/SGST split.
CGST + SGST vs IGST — what the split means
GST is one tax collected two ways. When buyer and seller are in the same state, the rate is split equally between the Centre (CGST) and the state (SGST) — an 18% invoice shows 9% + 9%. When the supply crosses state lines, the full rate is charged as IGST and the Centre settles the state’s share later. Your total tax is identical either way; only the invoice lines differ.
GST on ₹10,000 at each slab
The same base price lands very differently depending on the slab — the spread between essentials and luxury goods is the whole design of the 2026 structure.
| 3% (gold) | ₹10,300 |
| 5% (essentials) | ₹10,500 |
| 18% (standard) | ₹11,800 |
| 40% (luxury/sin) | ₹14,000 |
Who needs to charge GST?
Businesses must register for GST once turnover crosses ₹40 lakh for goods (₹20 lakh for services; lower thresholds in special-category states). Below the threshold, registration is optional — but many small businesses register anyway, because B2B customers prefer suppliers whose invoices carry claimable credit. Small businesses can also opt for the composition scheme: a flat low rate on turnover with almost no paperwork, at the cost of not charging GST on invoices or claiming any credits.
Freelancers count too. A designer or consultant billing more than ₹20 lakh a year must register, charge 18% on invoices to Indian clients, and file returns — while exports of services (foreign clients, foreign currency) are zero-rated with the right paperwork.
The GST you collect is not all yours to pay
If you are charging GST rather than just paying it, remember the other half of the system: the GST you paid on business purchases comes back as input tax credit and offsets what you owe on sales. A shop that collects ₹90,000 GST from customers but paid ₹54,000 GST to suppliers deposits only ₹36,000 in cash. That netting is the whole design of GST — tax on value added, not on turnover.
The ITC calculator on this site runs the full monthly settlement for you — output tax, eligible credit, cash payable and any carry-forward — including the Section 17(5) purchases on which credit is blocked.