GST 2.0 Rate Change Impact Calculator
Category-level guidance only. GST 2.0 rates took effect 22 September 2025 (56th GST Council, Notification 09/2025-CT(R)); tobacco products moved to 40% from 1 February 2026. Confirm your exact HSN/SAC rate on cbic-gst.gov.in or with a GST practitioner before re-pricing or invoicing. Last verified: 6 September 2026.
Frequently Asked Questions
What is GST 2.0 and when did it start?
GST 2.0 is the slab rationalisation approved at the 56th GST Council meeting on 3 September 2025 and effective from 22 September 2025. The 12% and 28% slabs were withdrawn; the structure is now 0%, 5%, 18% and 40%, with 3% for gold and 0.25% for rough diamonds continuing.
Where did the old 12% items go?
Most goods and services taxed at 12% moved to 5% (bicycles, many medicines, agricultural inputs, apparel up to ₹2,500 a piece) and the rest to 18%. Very few items stayed at 12%.
What does the 40% slab cover?
Demerit, luxury and sin goods: aerated drinks, luxury and large cars, motorcycles above 350cc, yachts, casinos, online money gaming, and — from 1 February 2026 — pan masala and most tobacco products (on retail sale price).
Did GST on insurance change?
Yes. Individual life insurance and individual health insurance premiums became fully exempt from 22 September 2025. Group policies and most other financial services stay at 18%.
Is this calculator a substitute for the CBIC rate schedule?
No. It applies the slab you select to the price you enter. The category list is a guide to the most common shifts; the binding rate is the one notified against your HSN/SAC code.