GST rates after GST 2.0
From 22 September 2025, GST moved to a simpler structure, often called GST 2.0. Most goods and services now fall into two main slabs, 5% and 18%, with a special 40% rate for a short list of luxury and sin goods. The old 12% and 28% slabs were removed: most items that were taxed at 12% moved down to 5%, and most items at 28% moved down to 18%.
A few special rates remain, and many essentials stay exempt at 0%:
- 0.25% on rough and cut diamonds and some precious stones
- 3% on gold, silver and jewellery
- 5% on many everyday goods and services
- 18% as the standard rate for most other goods and services
- 40% on luxury and sin goods, such as large cars and sugary or caffeinated drinks