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India sets GST rates

  • Nov 5, 2016 | Richard Asquith

India sets GST rates

India has set the following Goods and Services Tax (GST) rates ahead of the implementation of the new consumption tax in 2017:

  • 0% (essentials)
  • 5% (basic goods)
  • 12%
  • 18% (principle rate)
  • 28% (luxury goods)

The central CESS tax, of 2%, will remain on luxury goods.

The relatively large number or rates and broad bands may reduce some of the planned efficiencies around GST. However, the need to gain the acceptance of all the 27 Indian states has meant some compromises to ensure a 2017 launch were necessary.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.