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Taxzentic Hub

The GST 2.0 Resource Center

India’s GST rate rationalisation introduced broad 5% and 18% rates, plus a special 40% rate for specified goods and services. Find practical tools, official references and guides to understand the changes.

Editorial Note: "GST 2.0" is an editorial term describing the rate rationalization recommendations of the GST Council. While Council recommendations establish policy direction, rate amendments take legal effect only upon publication of implementing statutory notifications by the Central Government and respective State Governments.

Essential GST 2.0 Tools

GST 2.0 Calculator

Updated

Estimate GST using a rate you have verified. Split CGST/SGST or reverse-calculate tax from an inclusive amount.

Old vs New Rate Checker

Compare tax amounts using the old and revised rates that apply to your product, after checking their effective dates.

MRP Revision Calculator

Reverse-calculate your new MRP after a GST rate change. Automatically preserves your exact profit margin.

ITC Reversal Checker

A decision-tree tool to determine if a GST rate drop on your product legally requires you to surrender Input Tax Credit.

In-Depth Guides & Analysis

GST 2.0 New Rates (Complete List)

A comprehensive breakdown of which items moved to 5%, 18%, and the new 40% luxury slab.

Understanding the 40% Luxury Slab

What qualifies as "luxury"? How the 40% rate impacts automobiles, high-end electronics, and real estate.

How to Handle MRP Revisions

Legal requirements for restickering inventory and declaring new MRPs after rate changes.

ITC Reversals on Rate Drops

Step-by-step guide on how to handle Input Tax Credit when your product's GST rate decreases.

Product-wise Rate Changes

A product-by-product listing of all items affected by the GST 2.0 rate revision.

Post-Sale Discounts Under GST 2.0

How trade discounts, rebates, and dealer incentives are treated after a rate change under GST.

Frequently Asked Questions

What does GST 2.0 mean?
“GST 2.0” is a commonly used label for the GST rate rationalisation recommended by the 56th GST Council. The broad structure uses 5% and 18% rates, with a special 40% rate for specified goods and services. The exact legal rate comes from the applicable notification and tariff entry.
What are the GST 2.0 rates?
The broad rate structure includes a 5% merit rate, an 18% standard rate and a special 40% rate for specified goods and services. Some supplies may be nil-rated, exempt or subject to other specific treatment, so do not assume every item fits one of these three rates.
When did the GST 2.0 rate changes take effect?
Most revised rates for goods and services took effect on 22 September 2025. The GST Council initially phased certain pan masala and tobacco-related products separately; related revised rates were notified from 1 February 2026. Check the current notification for the exact product and transaction date.
How can I find the GST rate for a product?
Identify the product’s correct HSN classification, then check the corresponding entry, description, conditions and effective date in the latest Central and applicable State rate notifications. A product name alone may not be enough to determine its classification or rate.
Does the 40% rate apply to every luxury product?
No. The 40% rate applies to goods and services specified in the relevant rate entries. A product being described as “luxury” in ordinary or marketing language does not by itself establish its GST rate; verify its classification and notification.
Are 5%, 18% and 40% the only GST treatments?
No. Depending on the supply, the schedule may provide nil rates, exemptions or specific conditions and other treatments. Check the current rate schedule for the exact HSN or service classification rather than relying only on a summary of the broad structure.
Can the GST 2.0 calculator determine my product’s legal rate?
The calculator helps with tax arithmetic after you enter a rate; it does not make a binding HSN classification or legal rate determination. Confirm the applicable rate from the current notification or with a qualified tax professional before invoicing.
How do I compare an old GST rate with a revised rate?
Use the rate comparison tool to compare the arithmetic using the old and revised rates that apply to your product. First verify both rates and their effective dates against the applicable notifications; the comparison is an estimate, not a classification decision.
Which GST rate applies when supply, invoice and payment dates cross a rate change?
The applicable rate in a transition case can depend on the time-of-supply rules, including when supply occurred and when the invoice or payment was made. Review section 14 of the CGST Act and the official guidance for your exact facts; a single date rule does not cover every transaction.
Are Taxzentic’s GST 2.0 tools official government tools?
No. Taxzentic provides independent calculators and educational references. They are intended to help with estimates and research, not replace GST notifications, portal records, professional advice or a determination by the tax authorities.