GST Rates in India 2026: Complete Rate Chart for Small Businesses
A practical GST rate reference for Indian small businesses — 0%, 5%, 12%, 18%, and 28% slabs with real-world examples for common goods, services, and professions. Use Ozydo to apply rates automatically.
Choosing the wrong GST rate on an invoice is one of the most common — and costly — mistakes small business owners in India make. It can result in excess tax paid, short payment to the government, ITC denial for clients, and penalty notices during audits. India's GST rate chart has five main slabs: 0%, 5%, 12%, 18%, and 28%. Here is a complete practical guide for freelancers, traders, contractors, and service providers.
The 5 GST Rate Slabs — Quick Reference Chart
| GST Rate | Category | Common Examples |
|---|---|---|
| 0% (Nil) | Essential goods & exempt services | Fresh vegetables, milk, eggs, healthcare, education, agriculture |
| 5% | Basic necessities & essential services | Packaged food, life-saving drugs, small restaurants, passenger transport |
| 12% | Standard goods & some services | Processed foods, business class air travel, computers, construction services |
| 18% | Most services & manufactured goods | IT services, consulting, restaurants (AC), electronics, repair services |
| 28% | Luxury & sin goods | Cars, tobacco, aerated drinks, cement, premium hotels, air conditioners |
GST Rates for Common Services (SAC Code Reference)
Most services in India attract 18% GST. Here is a detailed GST rate list for services commonly billed by freelancers and small businesses, along with SAC codes:
| Service Type | GST Rate | SAC Code | Notes |
|---|---|---|---|
| IT / Software development | 18% | 998314 | Web dev, app dev, SaaS |
| Freelance design / creative | 18% | 998383 | Graphic design, UI/UX, illustration |
| Photography & videography | 18% | 999713 | Events, commercial shoots |
| Consulting / advisory | 18% | 998311 | Management, legal, HR consulting |
| Construction (residential) | 12% | 995411 | Works contracts, 12% with ITC |
| Construction (commercial) | 18% | 995411 | Commercial buildings |
| Electrical work | 18% | 995469 | Installation, repair, wiring |
| Plumbing services | 18% | 995469 | Plumbing, pipe fitting |
| Painting / interior work | 18% | 995469 | House painting, decorating |
| Restaurant (non-AC) | 5% | 996331 | No ITC allowed |
| Restaurant (AC / hotel) | 18% | 996331 | With or without ITC |
| Catering services | 18% | 996334 | Events, corporate catering |
| Transport of goods | 5% / 12% | 996511 | 5% without ITC, 12% with ITC |
| Legal services | 18% | 998212 | Lawyers, advocates |
| Healthcare / hospitals | 0% | 999311 | Mostly exempt |
| Education services | 0% | 999210 | Formal education institutions exempt |
| Event management | 18% | 998596 | Weddings, corporate events |
| Security services | 18% | 998521 | Guard services, CCTV |
| Accounting & CA services | 18% | 998221 | Bookkeeping, audit, tax filing |
| Courier / delivery | 18% | 996812 | Last-mile delivery services |
GST Rates for Common Goods (HSN Code Reference)
| Item | GST Rate | HSN Code |
|---|---|---|
| Mobile phones | 18% | 8517 |
| Laptops & computers | 18% | 8471 |
| Air conditioners | 28% | 8415 |
| LED lights & fixtures | 12% | 9405 |
| Electrical wiring & cables | 18% | 8544 |
| Switches & sockets | 18% | 8536 |
| Plumbing pipes (PVC) | 18% | 3917 |
| Plumbing fittings (brass) | 18% | 7412 |
| Paint & varnishes | 18% | 3208 |
| Cement | 28% | 2523 |
| TMT Steel bars | 18% | 7213 |
| Tiles (ceramic) | 18% | 6907 |
| Plywood / wood panels | 18% | 4412 |
| Solar panels | 12% | 8541 |
| Medicines (generic) | 5% | 3004 |
| Branded garments > ₹1000 | 12% | 6104 |
| Footwear > ₹1000 | 18% | 6402 |
| Bicycles | 12% | 8712 |
| Packaged drinking water (>20L) | 12% | 2201 |
| Hand sanitizer | 18% | 3808 |
💡 Use HSN/SAC Codes to Confirm Your Rate
Every good has a unique HSN (Harmonized System of Nomenclature) code and every service has a SAC (Services Accounting Code). When in doubt about the GST rate, search the HSN/SAC code on the CBIC GST portal — the correct rate is officially mapped to the code. In Ozydo, you can enter the HSN/SAC code per line item so the correct rate is applied and printed on the invoice.
Intra-State vs Inter-State GST — Which Rate Applies?
The GST rate is the same whether the sale is intra-state or inter-state. What changes is how the tax is split and which government it goes to:
- Intra-state (buyer and seller in same state): Charged as CGST + SGST, each at half the rate. E.g., 18% GST = 9% CGST + 9% SGST.
- Inter-state (buyer and seller in different states): Charged as IGST at the full rate. E.g., 18% IGST.
- Export of goods/services: Zero-rated (0% GST). You can claim a refund of input taxes paid.
- Supply to SEZ units: Zero-rated with a Letter of Undertaking (LUT).
How to Apply Multiple GST Rates on One Invoice
It is common for a business to supply goods or services at different GST rates in a single invoice. For example, an electrician billing for both labour (18%) and electrical materials (18%) — or a contractor billing for construction services (12%) and cement (28%). In such cases:
- 1List each line item separately with its own HSN/SAC code and applicable rate.
- 2The invoice must show the tax amount for each rate separately.
- 3Total invoice value is the sum of all line items including their respective taxes.
- 4A GST summary at the bottom showing total CGST, SGST/IGST per rate slab is best practice.
- 5Ozydo handles multi-rate GST automatically — each line item can have its own rate, and the summary is calculated instantly.
Apply Correct GST Rates Automatically — Free
Ozydo auto-calculates multi-rate GST with CGST/SGST per line item and a full invoice summary. No maths, no errors. Free forever.
Try Ozydo Free →GST Exemptions — What Is Not Taxed?
- Agriculture produce (fresh vegetables, fruits, unprocessed grain) — 0%
- Healthcare services (hospitals, clinics, ambulances) — Exempt
- Education services (schools, colleges, vocational training) — Exempt
- Residential rent (below ₹20,000/month to non-business tenants) — Exempt
- Unbranded food items (at street stalls and small eateries) — Exempt
- Books, newspapers, and periodicals — Exempt
- Postal services (basic letter post by government) — Exempt
Special GST Schemes for Small Businesses
| Scheme | Eligibility | Rate | ITC Available? |
|---|---|---|---|
| Regular GST | Turnover > ₹20L (₹10L special states) | As per rate chart | Yes |
| Composition Scheme | Turnover < ₹1.5 crore | 1–6% flat | No — cannot claim ITC |
| QRMP Scheme | Turnover < ₹5 crore | Regular rates | Yes, quarterly filing |
| GST Exemption | Turnover < ₹20L | No GST charged | No |
Frequently Asked Questions
What is the GST rate on freelance services in India?
Most freelance services — IT, design, writing, consulting, photography, marketing — are taxed at 18% GST under the SAC code applicable to that service. Ozydo automatically applies 18% when you select a service-based line item.
What happens if I charge the wrong GST rate?
If you over-charge GST, you must issue a credit note. If you under-charge, you are liable to pay the correct tax amount plus interest under Section 50 of CGST Act. Always verify the HSN/SAC code before issuing the invoice.
Is GST charged on exports?
No. Exports are zero-rated under GST. You can either export under a Letter of Undertaking (LUT) without paying IGST, or pay IGST and claim a refund later.
What is the GST rate for construction services?
Construction of residential property attracts 12% GST (with ITC) or 1.5% without ITC under the affordable housing scheme. Commercial construction attracts 18% GST. Works contract services for government projects attract 12%.
How do I find the HSN code for my product?
Go to the CBIC GST website and use the HSN search tool. You can also use Ozydo's line item description — it shows the common SAC codes for popular services so you can pick the right one directly while creating the invoice.
Written by the Ozydo Team
Ozydo is India's simplest free GST invoice app for small businesses and freelancers. We write practical guides on invoicing, GST, and business finance to help you get paid faster.
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