Complete Guide for Gold, Cars, Mobiles, Restaurants & More | Updated September 2025
🎯 Quick GST Rates Overview 2025
Get instant access to the latest GST rates across major categories. The 2025 GST reforms introduced significant changes including a new 40% luxury slab and reduced rates for essentials.
Gold: 3% + 5% making charges
Small Cars: 18% | Large Cars/SUV: 40%
Mobile Phones: 18%
Restaurants: 5% (standalone) | 18% (luxury)
Hotels: 0-18% (based on room tariff)
Electronics: Laptops & AC - 18%
Construction: Cement - 18% (reduced from 28%)
Clothing: 5% (≤₹2,500) | 18% (>₹2,500)
Beer & Liquor: No GST (State taxes apply)
Bikes: 18% (≤350cc) | 40% (>350cc)
Packaged Water: 5%
Electric Vehicles: 5%
💰 GST Rate on Gold
3% + 5% Making Charges
The GST rate for gold—including jewellery, bars, and coins—remains at 3% on the gold value, with an additional 5% GST applicable to making charges of jewellery. This rate was left unchanged during the 2025 GST reforms to provide price stability for buyers and clarity for the jewelry industry.
Who Pays?
Retail buyers purchasing physical or digital gold
Jewellery buyers pay GST on both the gold and the making charges (5% on making charges)
Businesses engaged in gold trading can claim Input Tax Credit (ITC) on GST paid if eligible
Gold Investment Options and GST
Physical gold: 3% GST on purchase
Gold ETFs: No GST on purchase, but 18% GST on management fees
Sovereign Gold Bonds: No GST applicable
Digital gold: 3% GST on purchase
Special Cases
Second-hand gold jewellery: Margin scheme applies
Gold coins: 3% GST regardless of purity
Gold imports: 3% GST + applicable customs duty
Documentation Requirements
Invoices must clearly separate gold value and making charges
HSN code 7108 for gold articles
PAN mandatory for transactions above ₹2 lakh
🚗 GST Rate on Cars
18% Small Cars | 40% Large Cars
As per the new GST overhaul effective September 22, 2025, the system is now two-tiered, with a special 40% slab for luxury/sin goods.
Car Type
GST Rate 2025
Small cars (petrol <1,200cc, diesel <1,500cc, <4m)
18%
Large cars, SUVs, all >1,200cc/>1,500cc/>4m
40%
Electric vehicles (EVs)
5%
The 40% rate consolidates previous GST and compensation cess. Auto components attract 18% GST.
Additional Charges on Cars
Compensation cess: Included in the 40% rate for luxury vehicles
Road tax: Varies by state, not included in GST
Registration charges: Separate from GST
Insurance: 18% GST applicable
Electric Vehicle Incentives
5% GST rate on all EVs
Subsidies under FAME II scheme
State-specific additional incentives
Reduced road tax in many states
Leased Vehicles
GST on lease payments: 18%
Input tax credit available for businesses
Long-term vs short-term lease differences
📱 GST Rate on Mobile Phones
18%
The GST rate on all mobile phones in India (smartphones, feature phones, accessories) is 18%—unchanged after the 2025 reforms.
Accessories Rates
Chargers, batteries, power banks, cases: 18%
Compliance Steps
Invoice every sale with GST at 18% using HSN code 8517 for mobile phones
Retailers must register for GST and file returns quarterly/monthly
Mobile Phone Components GST
Display screens: 18%
Batteries: 18%
Camera modules: 18%
Charging accessories: 18%
Repair services: 18%
E-commerce Sales
Marketplace collection: TCS at 1%
Seller registration required
Return policy implications
Manufacturing Incentives
PLI scheme benefits for manufacturers
Special economic zone advantages
Export benefits
🍽️ GST Rate on Restaurant Food
5% Standalone | 18% Luxury
The GST rate depends on the restaurant's type and location:
Standalone restaurants/casual dining (dine-in, takeaway): 5% (no ITC)
Restaurants within hotels (room tariff < ₹7,500): 5% (no ITC)
Restaurants within hotels (room tariff ≥ ₹7,500): 18% (with ITC)
Outdoor catering, special functions: 18%
For Restaurant Owners
Register under GST
Apply the relevant GST slab to each bill
Keep accurate records for periodic returns
Food Delivery Services
Swiggy/Zomato: 5% GST on restaurant food
Delivery charges: 18% GST separately
Cloud kitchens: 5% GST if standalone
Special Cases
Airport restaurants: 18% GST regardless
Railway catering: 5% GST
Food in movie theaters: 18% GST
Input Tax Credit Restrictions
No ITC for restaurants charging 5% GST
ITC available for restaurants charging 18% GST
Capital goods ITC rules
🏨 GST Rate on Hotel Rooms
0% to 18% Based on Tariff
Room Rent Per Day
GST Rate
₹1,000 or less
0%
₹1,001 – ₹7,500
5% (no ITC)
Above ₹7,500
18% (with ITC)
For Guests and Hotel Operators: The tax is added directly to the room tariff on the invoice. Operators must segregate income as per room tariff slabs for GST reporting.
Mid-range hotels (₹1,001-₹7,500): 5% GST, no ITC available
Luxury hotels (>₹7,500): 18% GST, full ITC available
Resort accommodations: Same tariff-based classification
Additional Hotel Services GST
Room service: Same rate as accommodation
Laundry services: 18%
Spa services: 18%
Conference room rental: 18%
Wi-Fi services: 18% (if charged separately)
Airport pickup/drop: 5% (if hotel-owned vehicle)
OTA (Online Travel Agency) Bookings
Commission to OTA: 18% GST
Room tariff GST: Based on actual room rate
Convenience fee: 18% GST
Booking platforms: MakeMyTrip, Goibibo, OYO
Corporate Bookings & ITC
Companies can claim ITC only on 18% GST bookings
No ITC available on 0% and 5% GST hotel stays
Business travel expenses: Proper invoicing required
Employee reimbursement: GST invoice necessary
Compliance for Hotel Operators
Register under GST in each state of operation
Segregate bookings by tariff slabs for accurate tax calculation
Issue proper invoices with guest details and GST breakdown
File GSTR-1 and GSTR-3B returns regularly
Maintain guest register with tariff details
Package Deal GST Rules
Hotel + meal packages: Highest applicable rate (composite supply)
Tour packages with accommodation: 5% GST (tourism services)
Corporate event packages: 18% GST
Wedding packages: GST as per predominant supply
💻 GST Rate on Laptops
18%
Laptops, desktops, and accessories including printers, scanners, and storage devices are taxed at 18%.
Steps to Comply
Businesses must ensure GST is calculated at 18% on MRPs
Provide valid invoices citing HSN code 8471 for ITC claims where applicable
ITC can be availed for business use
Computer Components GST
Processors: 18%
RAM: 18%
Storage devices: 18%
Monitors: 18%
Keyboards/mice: 18%
Software and Services
Pre-installed software: 18%
Software downloads: 18%
Repair services: 18%
Maintenance contracts: 18%
Business Purchases
ITC available for business use
Capital goods classification
Depreciation rules
❄️ GST Rate on Air Conditioners (ACs)
18% (Reduced from 28%)
Initially, air conditioners, as a deemed luxury product, were taxed at 28%. From September 2025, all ACs are in the 18% slab, making them more affordable.
Practical Guidance
AC manufacturers and retailers must now invoice at the lower GST rate and adjust input credits accordingly
Composite supply (AC + installation) should be billed inclusively at 18%
AC Components and Services
Split AC units: 18%
Window AC units: 18%
Installation services: 18%
Maintenance contracts: 18%
Spare parts: 18%
Refrigerant gas: 18%
Energy Efficiency Ratings
No GST difference based on star ratings
Government incentives for efficient models
State-specific subsidies may apply
Commercial vs Residential
Same 18% rate for both categories
ITC available for business purchases
Capital goods classification for large systems
🏗️ GST Rate on Cement
18% (Reduced from 28%)
Cement, a key construction material, has seen its GST rate reduced from 28% to 18% in the 2025 reforms to boost infrastructure development and housing affordability.
For Construction Companies
Lower GST on cement reduces overall project costs
ITC can be claimed on cement purchases for construction projects
Proper documentation with HSN code 2523 is essential
Cement Product Categories
Portland cement: 18%
White cement: 18%
Ready-mix concrete: 18%
Cement additives: 18%
Construction Industry Impact
Reduced input costs for builders
Lower project costs for affordable housing
Increased competitiveness
Retail Purchases
Same rate for retail customers
No ITC for individual buyers
Bulk purchase discounts may apply
👕 GST Rate on Clothes
5% (≤₹2,500) | 18% (>₹2,500)
Clothing items are taxed based on their retail sale price:
Item
GST Rate
Clothes priced ≤ ₹2,500 per piece
5%
Clothes priced > ₹2,500 per piece
18%
Branded apparel (regardless of price)
18%
Footwear ≤ ₹1,000 per pair
5%
Footwear > ₹1,000 per pair
18%
For Retailers
Ensure correct classification based on price points
Maintain proper records for GST filing
Use appropriate HSN codes (61 for clothing, 64 for footwear)
Textile Industry Chain
Raw cotton: 0% GST
Yarn: 5% GST
Fabric: 5% GST
Made-up garments: 5-18% based on price
Special Categories
Handloom products: 0% GST
Khadi products: 0% GST
Silk products: 5-18% based on price
Customized tailoring: 5-18% based on fabric cost
E-commerce Fashion
Same price-based classification
Marketplace TCS applies
Return policy implications
🍺 GST Rate on Beer and Liquor
No GST | State Taxes Apply
Alcoholic beverages for human consumption (beer, wine, spirits) do not attract GST as they are specifically excluded from the GST regime. However, state governments continue to levy significant taxes on these products:
State Excise Duty: Varies by state, typically 20-40%
VAT/Sales Tax: Additional 12.5-25% depending on state
Special Fees: License fees, import fees, and other local charges
Although no GST applies to the final product, input materials and transportation for beer and liquor production attract GST at 18%, which increases costs indirectly as manufacturers cannot claim input tax credit for these expenses.
State-wise Tax Variations
Kerala: Highest taxation at ~220% of manufacturing cost
Goa: Lowest taxation at ~50% of manufacturing cost
Maharashtra: Moderate taxation with special rates for premium products
Delhi: Fixed license fees plus excise duty
Input Costs with GST
Barley, hops, yeast: 0-5% GST
Packaging materials: 12-18% GST
Bottles, caps, labels: 18% GST
Transportation services: 18% GST
Marketing services: 18% GST
Special Cases
Beer with alcohol content below 0.5%: 18% GST (classified as non-alcoholic)
Cooking wine: 18% GST (not for human consumption)
Medicinal alcohol: 12% GST
Industrial alcohol: 18% GST
Compliance Requirements
State excise license mandatory
Separate registration for each state of operation
Monthly excise returns to state authorities
Movement permits for inter-state transport
🏗️ GST Rate on Construction Services
1% to 18% Based on Project Type
Construction Type
GST Rate
Conditions
Residential complexes (excluding land)
12%
With 1/3rd value deduction for land
Affordable housing projects
1%
Without input tax credit
Commercial complexes
18%
With input tax credit
Finishing services, highways, roads, bridges
18%
Full ITC available
Composite supply (goods <25% value)
18%
Works contract rate
Composite supply (goods >25% value)
12%
Mixed supply rate
Affordable housing must meet government criteria including carpet area (90 sqm in non-metros, 60 sqm in metros) and price caps to qualify for the 1% GST rate.
Residential vs Commercial Classification
Residential: 12% GST with land value abatement
Commercial: 18% GST (offices, shops, malls)
Mixed-use: Proportionate calculation based on usage
Redevelopment: Special rules for society redevelopment
Input Tax Credit Rules
Full ITC for commercial projects
No ITC for affordable housing (1% scheme)
Restricted ITC for residential projects
Capital goods ITC: Different rules for different project types
Material Procurement
Cement: 18% GST
Steel: 18% GST
Bricks: 5% GST
Sand: 5% GST
Paint: 18% GST
Sanitaryware: 18% GST
Affordable Housing Criteria
Maximum carpet area: 60 sqm (metros), 90 sqm (non-metros)
Maximum cost: ₹45 lakh (metros), ₹30 lakh (non-metros)
Must be part of government approved scheme
Beneficiary should not own any other residential property
🏍️ GST Rate on Bikes and Scooters
18% (≤350cc) | 40% (>350cc)
Vehicle Type
Engine Capacity
GST Rate
Mopeds, scooters, motorcycles
Up to 350cc
18%
Motorcycles, premium scooters
Above 350cc
40%
Electric two-wheelers
Any capacity
5%
The new 40% slab for high-capacity bikes (above 350cc) treats them as luxury goods. This includes premium motorcycles and performance scooters. Electric two-wheelers continue to enjoy the beneficial 5% rate to promote EV adoption.
Scooter Categories
Scooty/small scooters (≤125cc): 18% GST
Standard scooters (126-350cc): 18% GST
Premium maxi-scooters (>350cc): 40% GST
Electric scooters: 5% GST regardless of capacity
Additional Charges
Road tax: Varies by state (2-10% of vehicle cost)
Registration charges: Fixed by state government
Insurance: 18% GST on premium
Handling charges: 18% GST if applicable
EV Incentives
Additional state subsidies under EV policies
Reduced road tax in many states
FAME II scheme benefits for manufacturers
Charging infrastructure subsidies
Accessories and Parts
Helmets: 18% GST
Protective gear: 18% GST
Spare parts: 18% GST
Customization: 18% GST on labor and parts
💧 GST Rate on Packaged Drinking Water
5%
Packaged drinking water in all forms attracts a reduced GST rate of 5%, down from the previous 12-18%. This includes:
Bottled mineral water (all sizes)
Purified water bottles
20-liter water jars
Packaged natural mineral water
The rate reduction was implemented to make safe drinking water more affordable, especially during summer months when demand peaks.
Water Packaging Materials
PET bottles: 18% GST
Plastic caps: 18% GST
Labels: 12% GST
Packaging cardboard: 12% GST
Shrink wrap: 18% GST
Water Purification Equipment
RO systems: 18% GST
Water filters: 18% GST
Purification chemicals: 18% GST
Testing equipment: 18% GST
Service Aspects
Water delivery service: 18% GST
Dispenser rental: 18% GST
Maintenance contracts: 18% GST
Installation charges: 18% GST
Bulk Water Supply
Tankered water: 0% GST (non-packaged)
Pipeline supply: 0% GST (municipal supply)
Water cans (≥20L): 5% GST (considered packaged)
🪑 GST Rate on Furniture
18% (Most Items)
Most furniture items attract a standard GST rate of 18%, regardless of material or design. This includes:
Wooden furniture (beds, tables, chairs, cabinets)
Metal furniture (office chairs, filing cabinets, racks)
Medical furniture: 12% GST (hospital beds, examination tables)
School furniture: 5% GST (for educational institutions)
Raw Materials and Components
Wood: 5-18% depending on type and processing
Plywood: 12% GST
Hardware (hinges, handles): 18% GST
Upholstery fabric: 5-12% GST
Foam: 18% GST
Varnish/paint: 18% GST
Customization and Services
Custom furniture design: 18% GST
Carpentry services: 18% GST
Furniture installation: 18% GST
Repair and restoration: 18% GST
E-commerce Furniture Sales
Same 18% rate applies
Assembly services charged separately at 18%
Delivery charges: 18% GST
Return policy challenges for large items
⚡ GST Rate on Electric Vehicles (EVs)
5%
Electric vehicles enjoy a preferential GST rate of 5% across all categories to promote cleaner transportation and reduce pollution. This includes:
Electric cars
Electric two-wheelers (scooters, motorcycles)
Electric three-wheelers (autorickshaws, cargo vehicles)
Electric buses
This rate is significantly lower than conventional vehicles (18-40%) as part of the government's strategy to accelerate EV adoption in India.
EV Components and Charging
EV batteries: 18% GST
Charging equipment: 18% GST
Charging station installation: 18% GST
EV spare parts: 18% GST
Government Incentives
FAME II subsidies: Up to ₹1.5 lakh for cars, ₹30,000 for two-wheelers
State subsidies: Additional incentives in many states
Road tax exemption: In most states
Income tax benefits: Section 80EEB for EV loans
Charging Services
Public charging: 5% GST (as EV supply equipment service)
Home charging installation: 18% GST
Battery swapping: 18% GST
Membership fees for charging networks: 18% GST
Future Projections
Potential reduction in battery GST rates
Possible further incentives for commercial EVs
Charging infrastructure development incentives
Local manufacturing benefits under PLI scheme
🚜 GST Rate on Tractors
12%
Tractors are classified as agricultural machinery and attract a GST rate of 12%. This moderate rate recognizes the importance of agricultural equipment in supporting India's farming sector.
The rate applies to all types of tractors regardless of horsepower or specifications, including:
Utility tractors
Row crop tractors
Orchard tractors
Industrial tractors
Agricultural Implements
Plows: 12% GST
Harvesters: 12% GST
Seeders: 12% GST
Irrigation equipment: 12% GST
Trailers: 12% GST
Government Support
Subsidies under state agricultural schemes
Financing options through NABARD
Custom hiring centers benefits
Farm mechanization promotion schemes
Maintenance and Repair
Spare parts: 18% GST
Repair services: 18% GST
Maintenance contracts: 18% GST
Lubricants: 18% GST
Customization for Special Uses
Special attachments: 18% GST
Loader modifications: 18% GST
Backhoe attachments: 18% GST
Specialty tires: 18% GST
🫒 GST Rate on Mustard Oil
5%
Mustard oil, like all edible oils, attracts a GST rate of 5%. This lower rate category recognizes edible oils as essential kitchen commodities.
The 5% rate applies to:
Refined mustard oil
Kachi ghani (cold-pressed) mustard oil
Blended mustard oil
Packaged and unpackaged mustard oil
This rate makes mustard oil more affordable for household consumption compared to many other food products.
Other Edible Oil Rates
Sunflower oil: 5% GST
Soybean oil: 5% GST
Groundnut oil: 5% GST
Palm oil: 5% GST
Olive oil: 5% GST
Coconut oil: 5% GST
Oil Production Process
Mustard seeds: 0% GST (agricultural produce)
Oil extraction service: 5% GST
Packaging materials: 12-18% GST
Transportation: 12-18% GST
Special Categories
Organic mustard oil: 5% GST
Medicinal mustard oil: 12% GST (if certified)
Industrial mustard oil: 18% GST (non-edible)
Massage oils containing mustard: 18% GST
Retail vs Wholesale
Same 5% rate for all sale levels
Bulk discounts possible
Branded vs unbranded: Same rate
Import of mustard oil: 5% GST + customs duty
🚭 GST Rate on Gutka and Chewing Tobacco
40% (Highest Slab)
Gutka, chewing tobacco, and similar tobacco products are considered "sin goods" and attract the highest GST slab of 40% effective from September 22, 2025. This places them in the same category as other demerit goods.
The high tax rate is part of the government's public health strategy to discourage consumption of these harmful products through fiscal disincentives.
Other Tobacco Products
Cigarettes: 40% GST + compensation cess
Bidis: 28% GST + compensation cess
Cigars: 40% GST + compensation cess
Smoking mixtures: 40% GST
Compensation Cess
Additional cess on top of GST
Based on quantity or length
Revised annually
Specific rates for different tobacco products
Public Health Implications
High taxes reduce consumption, especially among youth
Revenue used for health programs
WHO recommends high taxes on tobacco products
Evidence from other countries shows effectiveness
Enforcement Challenges
Illicit trade concerns
Border control issues
Tax evasion attempts
Need for coordinated enforcement
🛡️ GST Rate on Bike Insurance
18%
Vehicle insurance, including bike insurance, attracts a standard GST rate of 18%. This rate applies to the premium amount paid for insurance coverage.
Life insurance: 4.5% GST on first year premium, 2.25% on renewal
Home insurance: 18% GST
Travel insurance: 18% GST
Crop insurance: 0% GST (government schemes)
Claim Process
No GST on claim payouts
Cashless garage repairs: GST applicable on parts and labor
Reimbursement claims: No additional GST
Total loss claims: Based on insured declared value
Premium Calculation
GST calculated on total premium
Shown separately on invoice
No ITC for individual policyholders
Businesses can claim ITC on vehicle insurance
Renewal Process
Same 18% GST on renewal premiums
No-claim bonus deducted before GST calculation
Add-ons taxed at same rate
Short-period policies: Proportional premium and GST
🔩 GST Rate on Sariya (Reinforcement Bars)
18%
Sariya (steel reinforcement bars used in construction) attracts a GST rate of 18%. This places it in the standard rate category for manufactured steel products.
The 18% rate applies to:
Thermo-mechanically treated (TMT) bars
High-strength deformed (HSD) bars
Cold-twisted deformed (CTD) bars
All diameters and grades of reinforcement bars
Other Steel Products
Structural steel: 18% GST
Steel plates: 18% GST
Steel pipes: 18% GST
Stainless steel: 18% GST
Steel ingots: 18% GST
Construction Impact
Major cost component in RCC work
ITC available for builders and contractors
Price volatility affects project costs
Quality certifications important (ISI mark)
Manufacturing Process
Iron ore: 5% GST
Coal: 5% GST
Scrap metal: 18% GST
Manufacturing services: 18% GST
Testing services: 18% GST
Transportation and Storage
Transportation: 12-18% GST based on vehicle type
Loading/unloading: 18% GST
Storage charges: 18% GST
Cutting/bending services: 18% GST
🛵 GST Rate on Scooty
18% (≤125cc)
Scooty models (small scooters typically up to 125cc) are taxed at 18% GST. This places them in the standard rate category for two-wheelers.
The 18% rate applies to:
All scooty models up to 125cc engine capacity
Electric scooties (5% GST as EVs)
Gearless scooters in this category
Scooters above 125cc capacity may fall under higher tax slabs, with those above 350cc attracting the luxury rate of 40%.
Popular Scooty Models
Honda Activa: 18% GST (125cc models)
TVS Jupiter: 18% GST
Suzuki Access: 18% GST
Hero Pleasure: 18% GST
Electric models: 5% GST
Ownership Costs
Insurance: 18% GST on premium
Registration: State charges + 18% GST on services
Maintenance: 18% GST on parts and labor
Fuel: Petrol prices include multiple taxes
Women-Specific Benefits
Some states offer reduced road tax for women owners
This comprehensive table compares GST rates across all major categories to help you understand the tax implications for different products and services.
Category
Product/Service
GST Rate
Remarks
Precious Metals
Gold
3%
+ 5% on making charges
Automobiles
Small Cars
18%
Petrol <1200cc, Diesel <1500cc, Length <4m
Automobiles
Large Cars/SUVs
40%
New luxury slab from Sept 2025
Automobiles
Electric Vehicles
5%
Promotional rate for EVs
Electronics
Mobile Phones
18%
All types of mobile phones
Electronics
Laptops
18%
Including accessories
Hospitality
Restaurant Food
5%
Standalone restaurants
Hospitality
Hotel Rooms (≤₹1,000)
0%
Tax exempt
Hospitality
Hotel Rooms (₹1,001-7,500)
5%
No ITC
Hospitality
Hotel Rooms (>₹7,500)
18%
With ITC
Appliances
Air Conditioners
18%
Reduced from 28%
Construction
Cement
18%
Reduced from 28%
Construction
Residential Complexes
12%
With land value deduction
Construction
Affordable Housing
1%
Without ITC
Construction
Steel Reinforcement Bars
18%
Sariya for construction
Textiles
Clothes (≤₹2,500)
5%
Per piece
Textiles
Clothes (>₹2,500)
18%
Per piece
Beverages
Beer & Liquor
No GST
State taxes apply
Beverages
Packaged Drinking Water
5%
Reduced from 12-18%
Two-wheelers
Bikes/Scooters (≤350cc)
18%
Standard rate
Two-wheelers
Bikes/Scooters (>350cc)
40%
Luxury slab
Two-wheelers
Scooty (≤125cc)
18%
Small scooters
Furniture
All Types
18%
Most items
Agriculture
Tractors
12%
Agricultural machinery
Food
Mustard Oil
5%
All edible oils
Tobacco
Gutka & Chewing Tobacco
40%
Highest sin tax slab
Services
Bike Insurance
18%
All vehicle insurance
📋 GST Compliance Essentials
Ensure your business stays compliant with these key GST requirements:
Registration: Mandatory for businesses with turnover exceeding ₹20 lakh (₹10 lakh for special category states)
Invoicing: Issue GST-compliant invoices with HSN codes for goods and SAC for services
Returns: File monthly/quarterly returns (GSTR-1, GSTR-3B) and annual return (GSTR-9)
Payments: Pay GST liability by the 20th of the following month
Record Keeping: Maintain records for at least 6 years
Non-compliance can result in penalties ranging from 10% of tax due (minimum ₹10,000) to 100% for intentional evasion.
❓ Frequently Asked Questions
Gold attracts 3% GST on the gold value, with an additional 5% GST on making charges for jewellery. This rate has been maintained in the 2025 GST reforms to provide stability to the jewellery industry.
Small cars (petrol <1,200cc, diesel <1,500cc, length <4m) attract 18% GST. Large cars, SUVs, and premium vehicles attract 40% GST under the new luxury slab introduced in September 2025. Electric vehicles continue to enjoy a preferential 5% rate.
All mobile phones attract 18% GST in 2025, unchanged from previous rates. This applies to smartphones, feature phones, and accessories.
No, alcoholic beverages for human consumption (beer, wine, liquor) do not attract GST. However, state governments levy excise duty and VAT on these products, which keeps prices high. Input materials and transportation for alcohol production do attract 18% GST.
Hotel room tariffs up to ₹1,000 per night are exempt from GST (0%). Rooms priced between ₹1,001 and ₹7,500 attract 5% GST without input tax credit. Rooms above ₹7,500 attract 18% GST with input tax credit.
Standalone restaurants charge 5% GST on food bills without input tax credit. Restaurants in hotels with room tariff of ₹7,500 or more charge 18% GST with input tax credit. Outdoor catering services attract 18% GST.
Electric vehicles enjoy a preferential GST rate of 5% to promote adoption of cleaner transportation. This applies to all types of EVs including cars, two-wheelers, and three-wheelers.
Yes, packaged drinking water (including mineral water and 20L jars) attracts 5% GST, reduced from the previous 12-18% rates. This makes safe drinking water more affordable.
Residential construction attracts 12% GST with one-third value deduction for land. Affordable housing projects qualify for 1% GST without input tax credit. Commercial construction and infrastructure projects attract 18% GST.
Clothes priced up to ₹2,500 per piece attract 5% GST, while those above ₹2,500 attract 18% GST. Branded apparel regardless of price attracts 18% GST.