VATupdate

GST rates in India

Quick overview

Standard Rate Reduced Rate Other Rates
18% 0.25%, 3%, 5%, 12% 28%

The local name for VAT in India is Maal aur Seva Kar.

There are basically 6 VAT rates in India: 0.25%, 3%, 5%, 12%, 18%, 28%

  • Standard GST rate is 18%

Recent developments

For more information about (recent) rate change developments in India, please click HERE.

GST Standard rate of 18%

  • Applicable to the majority of goods and services

GST Rate of 0.25% and 3%

  • Diamonds and other precious stones
  • Gold
  • Silver

GST Rate of 5%

  • Branded cereals
  • Air transport of passengers in economy class
  • Restaurants
  • Construction services of residential apartment

GST Rate of 12%

  • Second main rate
  • Electrical apparatus for radio and television broadcasting
  • Luxury hotels (greater than INR1,000 per unit per day)
  • Intellectual property rights
  • Construction services (other than residential apartments)
  • Banking services

GST Rate of 28%

  • Vehicles
  • Air-conditioners
  • Aerated drinks
  • Access to race clubs and casinos

Goods and services taxable at 0%

  • Exports
  • Supplies to a special economic zone (SEZ) unit of SEZ developer

Exempt supplies of goods and services

  • Unbranded cereals
  • Fruits and vegetables
  • Non-luury hotels (below INR1,000, per unit per day)
  • Renting of residential dwelling for use as residence
  • The transfer of a going concern

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on October 18, 2021.

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