GST Rates in India: Complete HSN/SAC Rate Slab Guide
India's GST has five main rate slabs: 0% (nil-rated), 5%, 12%, 18% and 28%. Goods are classified by HSN (Harmonised System of Nomenclature) code and services by SAC (Services Accounting Code); the rate is determined by that code, not by guesswork. Getting the classification wrong means overpaying or facing a demand notice later.
What falls in each slab
| Slab | Typical items |
|---|---|
| 0% / Nil | Fresh food, milk, books, educational/healthcare services |
| 5% | Packaged food, footwear under ₹1,000, transport services, life-saving drugs |
| 12% | Processed food, business-class air tickets, some apparel |
| 18% | Most professional services, IT services, consulting, most manufactured goods — the default rate |
| 28% (+ cess on some) | Luxury cars, tobacco, aerated drinks, certain consumer durables |
How to find your HSN/SAC code and rate
Search the official GST rate finder using your product/service description, or check your industry's typical HSN chapter (e.g., Chapter 85 for electronics, Chapter 61–62 for apparel). SAC codes for services generally start with 99 (e.g., 9983 for other professional/technical/business services).
Why the classification matters
Charging the wrong rate on invoices creates a mismatch during GST audits and can trigger interest and penalty on short-paid tax. It also affects your customer's ability to claim input tax credit correctly, which can strain B2B relationships.
HSN code mandatory on invoices
Businesses with turnover above ₹5 crore must show a 6-digit HSN code on every B2B invoice; smaller businesses need a 4-digit code. Getting this right is part of standard e-invoicing compliance.
Unsure of your rate? Our GST registration and filing service classifies your products/services correctly and keeps your invoicing compliant.