GST stands for Goods & Service Tax, it applied all over India since 1st of July 2017.
Mandatory Registrations: Efficient onboarding for businesses crossing threshold limits (₹40 Lakhs for goods / ₹20 Lakhs for services).
0% Slab (Exempt / Nil-Rated)
- Target: Unprocessed daily essentials, public welfare, and fundamental needs.
- Key Items: Unpacked food items, fresh fruits and vegetables, milk, bread, salt, and critical educational materials. Individual health and life insurance policies are also fully exempt
5% Slab (Concessional / Merit Rate)
- Target: Mass-consumption FMCG goods and primary industrial support tools.
- Key Items: Packaged food items, butter, ghee, edible oils, and essential personal care items like toothpaste, soaps, and shampoos. It also includes agricultural equipment and medical equipment.
18% Slab (Standard Rate)
- Target: The default tier applicable to the vast majority of commercial goods, modern consumer goods, and professional services.
- Key Items: Consumer electronics, computers, appliances (like ACs, TVs, and refrigerators), and two-wheelers or small cars. It also covers professional services, B2B software, and construction materials like cement.
40% Slab (Luxury & Sin Tax)
- Target: De-merit goods, premium luxury vehicles, and socially discouraged substances.
- Key Items: Pan masala, cigarettes, aerated or carbonated beverages, premium high-end cars, yachts, and tobacco products. This unified rate replaced the old complex system of 28% GST plus an additional varying Compensation Cess.