GST Calculator (GST 2.0 — 4-Slab Structure 0%/5%/18%/40%)

GST 2.0 Item-Wise Breakdown

Comprehensive list of items in each GST 2.0 slab (Effective 22 Sept 2025)

Rate	Goods	Services
0%	Fresh fruits, vegetables, milk, eggs, salt, jaggery, unbranded cereals, dairy products, 33 life-saving drugs, textbooks	Health and life insurance (individual), education services, healthcare (in-patient), charitable activities
5%	Edible oil, sugar, tea, coffee, spices, processed food, packaged snacks, medicines (most), Electric Vehicles, personal care items, small cars (sub-4m, <1500cc), motorcycles (≤350cc)	Restaurants (non-AC), railway transport (non-AC), economy flights, mass transport, tour operators
18%	Industrial machinery, capital goods, hair oil, soap, biscuits, cameras, AC, refrigerator, washing machine, motorcycles (>350cc), most consumer durables, textiles above ₹2,500, mid-segment cars	Professional services (CA, lawyer, doctor private practice), telecom, IT services, banking, hotels ₹1K-7.5K/night, AC restaurants, financial services
40%	Premium/luxury cars (>₹15L or >1500cc), aerated drinks, energy drinks, sugary beverages, pan masala, gambling, race courses	5-star hotels (>₹7.5K/night), entertainment events, casinos, premium club memberships
0.25%	Rough diamonds (Surat industry support)	—
3%	Gold, silver (jewellery making charges additional 5%)	—
28% + Cess	Tobacco products (pan masala, gutkha, cigarettes, chewing tobacco, bidi) — CONTINUES till compensation cess loan obligations cleared	—

What Changed on 22 September 2025 (GST 2.0)

12% slab eliminated: Items moved to 5% (dairy, personal care, medical devices) or 18% (textiles above ₹2,500, select services)
28% slab + cess restructured: Replaced with clean 40% slab for luxury/sin goods. Cess removed except for tobacco (until loan obligations cleared, likely by Dec 2025)
Insurance exempted: Individual health and life insurance moved to 0%
33 life-saving drugs: Moved to nil rate
Small cars affordable: Sub-4m petrol cars (≤1500cc) shifted from 28% to 18% (now 5% post GST 2.0 in some categories)
Composition rates UNCHANGED: 1% (trader/mfr), 5% (restaurant), 6% (service)
Effective date: All changes from 22 September 2025

GST 2.0 FAQs

What's GST 2.0 and when did it become effective?

GST 2.0 refers to the major rate rationalisation approved at the 56th GST Council Meeting on 3 September 2025, with changes effective from 22 September 2025. The 12% and 28% slabs were abolished, simplified to: 0%, 5%, 18%, and a new 40% slab for luxury/sin goods. Compensation cess removed for most items (except tobacco till loan obligations cleared).

What if my transaction was BEFORE 22 Sept 2025?

Use the "Old GST" option in the era selector. Pre-22 September 2025 transactions follow 5-slab structure (0/5/12/18/28% + cess). Tax invoices and ITC reconciliation must match the rate applicable on the date of supply. For transitional cases (orders placed before but supplied after), apply the rate on date of issue of invoice or actual supply per Section 12-14 of CGST Act.

Are composition scheme rates same after GST 2.0?

YES — composition rates remain UNCHANGED: 1% (trader/manufacturer), 5% (restaurant non-AC), 6% (service provider). Composition turnover thresholds also unchanged: ₹1.5 Cr (goods), ₹50L (services). The GST 2.0 reform was about main slabs, not composition.

What happened to compensation cess?

Compensation cess was a temporary mechanism (5 years post GST launch in 2017) to compensate states for revenue loss. With GST 2.0, cess is removed for most items. Tobacco products (pan masala, gutkha, cigarettes, bidi) continue with 28% + cess until loan repayment obligations under the compensation cess account are fully discharged (expected by Dec 2025). After that, tobacco likely shifts to 40% slab.

Should I update my ERP/invoicing system?

YES, urgently if you bill items affected by GST 2.0. Update: (1) HSN/SAC master with new rates from 22 Sept 2025, (2) ITC reconciliation logic, (3) GSTR-1 line items for new categories, (4) Customer invoices showing 40% (not 28%+cess) where applicable. Most accounting software (Tally, BUSY, Zoho) released updates around Sept 2025.

How does GST 2.0 affect ITC eligibility?

ITC rules unchanged structurally, but rate-wise: (1) ITC on purchases at OLD rates (before 22 Sept) flows normally, (2) ITC on purchases at NEW rates flows at new rates, (3) Inverted duty refund situations may change — items previously at 12% with 18% output now at 5% with 18% output have larger inverted duty pool. Review your input-output rate matrix.

What's the GST registration threshold in 2026?

UNCHANGED by GST 2.0: Normal states: ₹40 lakh (goods) / ₹20 lakh (services). Special Category States (NE, J&K, Uttarakhand, HP): ₹20 lakh / ₹10 lakh. Mandatory regardless of turnover: inter-state suppliers, e-commerce operators, reverse charge cases, casual taxable persons, non-resident taxable persons.

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