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GST 2.0 New Rates (2025) — 5/18/40 Slabs Explained
The GST 2.0 reform, decided by the 56th GST Council and effective 22 September 2025, restructured India's GST slabs. The 12% and 28% rates were removed for most items: the main slabs are now 5%, 18% and 40%, alongside 0% (nil-rated) and the niche 3% (gold/jewellery making) and 0.25% (rough diamonds). The old 28% band (plus cess) was largely folded into a new 40% rate reserved for sin and luxury goods, while many everyday items that were at 12% or 28% moved down to 5% or 18%. Use the old→new delta view to see how a specific category changed and the exact price impact: a ₹1,000 base item that was at 28% now at 18% drops from ₹1,280 to ₹1,180 — a ₹100 saving. Many incumbents still show the pre-reform slabs; this calculator uses the current GST 2.0 rates. Free, no login.
GST 2.0 effective date: 22 September 2025 (56th GST Council)
- New main slabs: 5% / 18% / 40% — plus 0% nil-rated
- Niche slabs retained: 3% (gold and jewellery making charges) and 0.25% (rough diamonds)
- Removed: the 12% and 28% slabs (28% + cess largely replaced by a new 40% sin/luxury rate)
- Old→new delta: pick a category to see the previous slab, the new slab and the price impact
- Worked example — ₹1,000 base, was 28% (₹1,280 gross), now 18% (₹1,180 gross): save ₹100
- Worked example — ₹1,000 base, was 12% (₹1,120 gross), now 5% (₹1,050 gross): save ₹70
- Note: a few items still carry cess beyond 40% — verify the current rate for your HSN
Frequently asked questions
What are the new GST rates under GST 2.0?
Following the 56th GST Council decision, effective 22 September 2025, the main GST slabs are 5%, 18% and 40%, plus 0% for nil-rated items. Two niche rates remain: 3% on gold and jewellery making, and 0.25% on rough diamonds. The earlier 12% and 28% slabs were removed — most items on those bands moved to 5% or 18%, while sin and luxury goods (previously 28% plus cess) moved to a new 40% rate. Some items still attract cess in addition, so always confirm the current rate for the specific HSN code.
Which slabs were removed in the GST 2.0 reform?
The 12% and 28% slabs were removed for most goods and services. Items previously taxed at 12% or 28% were re-slotted: many moved down to 5% or 18%, easing the tax on everyday goods, while sin and luxury products that were at 28% (plus compensation cess) moved up to a new 40% rate. This is why a current calculator matters — several older tools still list the pre-reform 12% and 28% slabs and no longer reflect the correct rate.
How much does GST 2.0 change the price of my product?
It depends on how your item was re-slotted. Use the old→new delta view to see the change. For a ₹1,000 base item that moved from 28% to 18%, the GST-inclusive price falls from ₹1,280 to ₹1,180 — a ₹100 (about 7.8%) saving. An item moving from 12% to 5% drops from ₹1,120 to ₹1,050 — a ₹70 saving. Items moved to the new 40% sin/luxury slab, conversely, became more expensive. Enter your old and new rate to see the exact impact for your price.