Finance
GST 2.0 one year on: 12% and 28% slabs gone, here are the rates that apply now
Since 22 September 2025 GST runs on two main slabs, 5% and 18%, plus 40% for luxury and sin goods. Tobacco moved to the new system on 1 February 2026.
GST now works on two main slabs — 5% and 18% — with a special 40% rate for luxury and sin goods. The 12% and 28% slabs were removed from 22 September 2025, after the 56th GST Council meeting.
What moved where
| Before | Now | Examples |
|---|---|---|
| 18% | 5% | Soap, shampoo, toothpaste |
| 12% | 5% | Most items earlier at 12% |
| 28% | 18% | Small cars, ACs, TVs, cement |
| 18% | Exempt | Individual life and health insurance |
Tobacco and the end of cess
From 1 February 2026, GST compensation cess ended on all goods. Tobacco and pan masala moved to the 40% rate, with a separate excise duty on tobacco and a health cess on pan masala.
For businesses
- Remove 12% and 28% from billing software and price lists.
- Invoices issued before 22 September 2025 at old rates stay valid.
Recalculate prices with the free GST calculator or make bills with the GST invoice generator.
Calculate it yourselfGST calculator →GST invoice generator →
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