GST Rate Finder: How to Find the Correct GST Rate for Any Product in 2026
"What is the GST rate on this?" is the most common question an Indian business owner asks, and since the GST rate overhaul of September 2025 it has become even more common. Many items moved from 12% to 5%, most 28% items moved to 18%, and a new 40% slab was created for luxury and sin goods. If your billing software or price list still uses old rates, you are either over-charging customers or under-paying tax, and both cause trouble.
This guide explains how GST rates are decided, the step-by-step method to find the correct rate for any product or service, and the mistakes that lead to wrong rates on invoices. If you just want the answer for one item, search it in our free GST rate and HSN code finder.
The GST Rate Structure in 2026
From 22 September 2025, the GST Council replaced the old four-slab structure (5%, 12%, 18%, 28%) with a simpler one. Here is how rates look for FY 2026-27:
| Rate | What it covers | Typical examples |
|---|---|---|
| Nil / exempt | Unprocessed essentials and some services | Fresh fruit and vegetables, fresh milk, curd, unbranded atta, individual life and health insurance |
| 5% | Merit rate for everyday goods | Packaged food staples, soap, toothpaste, hair oil, most medicines, restaurant service (without ITC) |
| 18% | Standard rate for most goods and services | Electronics, cement, small cars, two-wheelers up to 350cc, most professional and IT services |
| 40% | Luxury and sin goods | Aerated and caffeinated drinks, large cars and bikes above 350cc, tobacco products |
| 3% / 0.25% | Special rates | Gold, silver and jewellery (3%); rough diamonds (0.25%) |
The examples are indicative. The rate that applies to your item depends on its exact HSN code and description in the rate notification, so never rely on the category alone. Compare old and new rates for any item with our GST rate comparison tool.
How to Find the GST Rate for a Product: 5 Steps
Step 1: Describe the product precisely
Rates depend on details. "Biscuits" and "chocolate-coated biscuits" can fall under different entries, as can "paneer" and "processed cheese". Write down what the item is made of, whether it is packaged and labelled, and what it is used for.
Step 2: Find the HSN code (goods) or SAC code (services)
Every product is classified under the Harmonised System of Nomenclature (HSN). The first two digits give the chapter (for example, chapter 30 is pharmaceutical products), and each further pair of digits narrows it down. Services use a Services Accounting Code (SAC) beginning with 99. Search by product name in the HSN/SAC finder, or read our HSN code list guide to understand how chapters and headings work.
Step 3: Check the rate for that exact code
Once you have the code, look up the rate notified against it. Our HSN finder shows the current rate for each code, and each code has its own page (for example HSN 3004 — medicines) with the description and rate. For a specific product you can also open a page like GST rate on mobile phones.
Step 4: Check conditions and exceptions
Some entries carry conditions: the 5% rate on restaurant service comes without input tax credit; certain textiles and footwear are taxed by price band; some items are rated differently when sold loose versus pre-packaged and labelled. Read the full entry, not just the rate column.
Step 5: Apply the right tax type
The rate is the same across India, but the split depends on where the buyer is. Within your state you charge CGST and SGST at half the rate each; to another state you charge IGST at the full rate. Use the place of supply tool if you are unsure, then the GST calculator to work out the tax amount.
Finding GST Rates for Services
Services follow the same logic using SAC codes. Most professional, IT, consulting, repair and marketing services are at 18%. Notable exceptions include restaurant service (5% without ITC), hotel rooms up to ₹7,500 per night (5%), passenger transport by non-AC bus or economy air travel (5%), and exempt services such as healthcare by clinical establishments and most education. For a full list, see our GST rates for services guide.
How Many HSN Digits to Show on Your Invoice
| Aggregate turnover (previous FY) | HSN digits required |
|---|---|
| Up to ₹5 crore | 4 digits on B2B invoices (optional on B2C) |
| Above ₹5 crore | 6 digits on all tax invoices |
The same HSN codes must appear in the HSN summary of your GSTR-1, so getting them right at the invoice stage saves work at filing time. Our free GST invoice generator adds the HSN code and rate to each line for you.
Common GST Rate Mistakes
- Using pre-September 2025 rates. Old billing templates still showing 12% or 28% are the most common error in 2026. Run your product list through the GST 2.0 migration checker.
- Picking a code by name match alone. Two products with similar names can sit in different chapters. Check the description, not just the keyword.
- Copying a supplier's rate blindly. Your supplier may be wrong too. If the rate on a purchase invoice looks odd, verify it before you claim ITC on it.
- Ignoring composite supplies. When goods and services are sold together, the rate of the principal supply usually applies to the whole bundle.
- Charging GST on exempt items. Tax wrongly collected still has to be paid to the government, and it annoys customers.
A wrong rate on an invoice cannot simply be ignored. If you under-charged, you owe the difference with interest; if you over-charged, issue a credit note. Check the cost of fixing late payments with our GST interest calculator.
When to Ask for an Official Answer
For most products a careful HSN search settles the rate. If classification is genuinely unclear and the amount is significant, you can apply for an Advance Ruling from your state's Authority for Advance Ruling, which binds you and the tax department. A chartered accountant can help you frame the question.
Frequently Asked Questions
What are the GST slabs in 2026?
The main slabs are 5%, 18% and 40%, with essentials exempt or nil-rated, and special rates of 3% for gold, silver and jewellery and 0.25% for rough diamonds.
How do I find the GST rate of a product?
Find its HSN code (or SAC code for a service) and look up the rate notified for that code. Search by product name or code in our GST rate finder.
Is the GST rate the same across all states?
Yes. Only the split changes: CGST plus SGST for sales within your state, IGST for sales to another state.
What happens if I charge the wrong GST rate?
If you charged too little, you pay the shortfall yourself with 18% interest and may face a penalty. If you charged too much, the excess must still be deposited, or refunded to the buyer via a credit note.
Free GST Rate Tools
- GST Rate & HSN Finder — search any product by name or code
- HSN/SAC Finder — codes for goods and services
- GST Rate Comparison — old vs new rates after GST 2.0
- GST 2.0 Migration Checker — check your product list for outdated rates
- GST Calculator — add or remove GST from any amount
- GST Invoice Generator — create invoices with the right HSN and rate