GST — Goods and Services Tax — is a single indirect tax that replaced 17 central and state taxes including VAT, Central Excise, Service Tax, and Octroi when it was introduced on July 1, 2017. Instead of a tax-on-tax cascade at every stage of production, GST levies tax only on the value added at each step. You, the final consumer, bear the full tax; businesses in the supply chain only pass it forward.
Whether you buy a packet of biscuits, book a flight, or pay a restaurant bill — GST is embedded in the price. Learning the slab rates lets you instantly spot when you're being overcharged.
The Four Tax Slabs
GST Slabs — What You Pay on Common Items
- 0%: Rice, wheat, fresh vegetables, milk, eggs, books, newspapers, health services
- 5%: Packaged food (atta, dal, spices), transport, economy air travel, life-saving medicines
- 12%: Processed foods, mobile phones, computers, business class air travel
- 18%: Most manufactured goods, restaurant food, financial services, telecom
- 28%: Luxury goods (cars, tobacco, aerated drinks, casino and online gaming)
CGST, SGST, IGST — What These Mean on Your Bill
Within-state vs Cross-state Purchases
Every GST-registered business must show its GSTIN on the bill. You can verify it at gst.gov.in → Search Taxpayer. If a restaurant bills you 18% GST but has turnover under ₹1.5 crore, they should charge 5% under the composition scheme. Overshoot? Call GST helpline 1800-1200-232.
₹19.6L Cr
GST collected FY26
17
Taxes replaced
1.5Cr+
Registered businesses
July 1, 2017
Launch date
If you buy a mobile phone online from a seller in another state, which type of GST will appear on your invoice?
Arjun Menon
Economy Reporter