Old vs New GST Rate Comparison Tool

The old GST structure had 5 slabs: 0%, 5%, 12%, 18%, and 28%. Under GST 2.0 (effective 22 September 2025), this was simplified. The 12% slab was largely abolished, items were merged into 5% or 18%, and a new 40% luxury slab was created for sin/luxury goods that replaced the old 28% + cess structure.

Take your base price (excluding tax). Multiply by the old rate to get old tax amount, then multiply by the new rate to get the new tax amount. The difference is the price impact on the consumer. For example, if base price is ₹1,000 and rate drops from 12% to 5%, old tax = ₹120, new tax = ₹50, saving = ₹70 per unit.

Yes, under Section 171 of the CGST Act (Anti-Profiteering), you must pass on the benefit of a GST rate reduction to your consumers. The National Anti-Profiteering Authority (NAA) investigates complaints, and non-compliance can result in penalties and forced refunds to customers.

The 40% slab was introduced as a consolidated luxury/sin goods bracket under GST 2.0. It covers high-end luxury goods, premium aerated beverages, tobacco products, and certain demerit goods. This replaced the old system of 28% base rate + compensation cess, making the total effective rate clearer.

Yes. The applicable GST rate is determined by the date of supply (invoice date / date of delivery, whichever is earlier). Invoices dated before 22 September 2025 use the old rates. Invoices from the effective date onwards must use the new GST 2.0 rates.

A rate increase means higher tax for the same base price, which increases the consumer-facing total price. You must update your billing system, price lists, and invoices to reflect the new GST-inclusive price. Failure to charge the correct higher rate means you pay the difference from your own pocket.

A rate drop to a lower taxable slab (e.g., 12% to 5%) does NOT require ITC reversal on previously purchased inputs. However, if a product becomes Exempt (0%), you must reverse ITC on closing stock proportional to exempt supplies under Rule 42 of the CGST Rules.

For B2B buyers, both the tax amount on their purchase invoice and the ITC they can claim changes proportionally with the rate change. If rates go down, they claim less ITC but also pay less cash. The net effect is usually neutral on fully ITC-eligible purchases.

Yes. The tool compares GST rates for any taxable category, including services. Just select the old service rate (e.g., 12%) and the new rate (e.g., 18%) and enter the base service fee to see the exact impact on the final invoice amount.

GST 2.0 rate changes came into effect on 22 September 2025, following the 55th GST Council Meeting decisions. All suppliers were required to update their billing systems, ERP software, and price lists from that date.