18% is now the dominant GST rate in India — absorbing items from both the abolished 12% and 28% slabs. Here is the complete list of items at 18% with HSN codes, effective September 22, 2025.
After GST 2.0 took effect on September 22, 2025, the 18% rate became the dominant GST slab in India. With both the 12% and 28% slabs abolished, all items that did not qualify for 5% (essential goods) or 40% (luxury/sin goods) landed at 18%. This means the 18% slab now covers a far wider range of products and services than it did before the reform.
The expansion of the 18% slab went both ways: items from the old 12% slab that were not considered essential enough for 5% moved up to 18%, while a large number of consumer goods from the old 28% slab — particularly white goods and consumer electronics — moved down to 18%. The net effect for consumers is mixed: daily-use consumer goods are cheaper, but some processed foods and building materials are slightly more expensive.
For businesses, the 18% standard rate is the one most invoices will use. IT services, consulting, telecom, financial services, restaurant meals with AC, consumer electronics, and most manufactured goods all fall here. We built myBillPlease to handle this complexity — our GST calculator shows the exact breakdown at 18% for any invoice amount, and our HSN code tool confirms the rate for any specific product.
This is the biggest consumer win in the 18% category. White goods — air conditioners, refrigerators, washing machines, dishwashers — were at 28% GST before GST 2.0. They moved down to 18%, saving buyers thousands of rupees on each purchase.
Air conditioners (HSN 8415): All air conditioners — window ACs, split ACs, cassette ACs, and centralized AC units — are now at 18% GST under HSN 8415. Before GST 2.0, an AC attracting 28% GST made a Rs 35,000 split AC cost Rs 44,800. At 18%, the same AC costs Rs 41,300 — a saving of Rs 3,500 per unit.
Refrigerators and freezers (HSN 8418): Household refrigerators (single door, double door, French door), commercial freezers, and ice-making machines moved from 28% to 18% GST. A Rs 25,000 refrigerator saves Rs 2,500 in GST under the new rate.
Washing machines and dryers (HSN 8450, 8451): Fully automatic, semi-automatic, and front-load washing machines are now at 18% under HSN 8450. Clothes dryers under HSN 8451 are also at 18%. A Rs 30,000 fully automatic washing machine saves Rs 3,000 in GST.
Dishwashers (HSN 8422): Household dishwashers moved from 28% to 18% GST. With dishwashers increasingly entering Indian middle-class homes at Rs 20,000–50,000 price points, the savings are meaningful — Rs 2,000 to Rs 5,000 per unit.
Microwave ovens (HSN 8516): Microwave ovens moved from 28% to 18%. A Rs 8,000 microwave saves Rs 800 at the new rate.
Large TVs above 32 inches (HSN 8528): LED TVs, OLED TVs, and QLED TVs above 32 inches moved from 28% to 18% GST. A Rs 50,000 television saves Rs 5,000 in GST. TVs 32 inches and below were already at 18% before GST 2.0.
For electronics and appliance dealers, this is a major pricing update. Any stock purchased before September 22 at 28% GST that is sold after September 22 must be invoiced at 18%. You can claim a transition credit adjustment for stock on which you paid 28% input tax but must now invoice at 18%.
Information technology services, software, and digital services remain at 18% GST — there was no change for this category under GST 2.0. However, since many software and IT professionals operate in the 18% bracket, we include a detailed breakdown here for reference:
IT consulting and software development (SAC 998314, 998313): Custom software development, application programming, software consultancy, and IT system integration services are at 18% GST. Freelance developers and IT agencies billing clients must charge 18% and show SAC 998314 on their invoices.
SaaS and cloud services (SAC 998315): Software as a Service subscriptions, platform services, and cloud computing services are at 18% GST. Subscriptions to tools like Zoho, Salesforce, AWS, Google Cloud, and Microsoft Azure — and of course myBillPlease — all attract 18% GST.
Website design and development (SAC 998314): Web development projects, UI/UX design, e-commerce development, and website maintenance are at 18% GST.
Data processing and analytics (SAC 998312): Data entry, data processing, business analytics, and research services are at 18%.
IT hardware — computers and laptops (HSN 8471): Laptop computers, desktop computers, tablets, and servers are at 18% GST under HSN 8471. This rate was unchanged — IT hardware was already at 18% before GST 2.0.
Printers and peripherals (HSN 8443, 8471): Computer printers, scanners, keyboards, monitors, and other computer peripherals are at 18% GST.
For IT professionals and agencies, the 18% rate continues to apply with no change. The only relevant GST 2.0 update for the IT sector is the reduced e-invoice threshold — if your IT business crosses Rs 5 crore turnover, you must now generate e-invoices for every B2B transaction.
Almost all B2B professional services remain at 18% GST under GST 2.0. The simplified slab structure means fewer disputes about which rate applies — the broad principle is that services not specifically exempted or placed at 5% are at 18%.
Legal services (SAC 998211): Legal consultancy, drafting, litigation support, and legal representation services are at 18% GST for corporate clients. Legal services provided to individuals are exempt (0%), but B2B legal services are taxable at 18%.
Accounting and CA services (SAC 998222): Chartered accountant services, tax filing, audit, and financial advisory services are at 18% GST. GST itself on GST compliance services — yes, your CA charges 18% GST on the fees they charge for helping you with GST returns.
Marketing, advertising, and PR (SAC 998361): Digital marketing, SEO services, social media management, advertising campaigns, and public relations are at 18% GST.
Management consulting (SAC 998311): Business strategy, management advisory, organizational consulting, and process consulting are at 18%.
Architecture and engineering (SAC 998311, 998321): Architectural design, civil engineering consultancy, structural engineering, and project management services are at 18% GST.
Event management (SAC 998596): Corporate event planning, conference management, and exhibition services are at 18% GST.
We designed myBillPlease's invoice templates specifically for service professionals — you can save your SAC code with each service item so the right GST rate is always pre-filled when creating invoices. Set up your service catalog once, and every invoice you generate will be compliant.
These product categories became more expensive after the 12% slab was abolished
Financial services and telecom have always been the backbone of the 18% slab, and GST 2.0 made no changes to these categories:
Banking services (SAC 997111–997119): Bank charges, processing fees for loans, mortgage processing fees, credit card annual fees, and other banking charges attract 18% GST. Note that the interest component on loans is exempt — only the service fee portion of banking transactions is taxable.
Stock broking and trading services (SAC 997151): Brokerage fees charged by stockbrokers, commodity brokers, and mutual fund distributors are at 18% GST. The securities themselves are not subject to GST, but the service fees are.
Mobile and internet services (SAC 996311): Mobile prepaid and postpaid recharge, broadband internet plans, and DTH subscriptions attract 18% GST. For a Rs 399 mobile recharge, approximately Rs 60 is GST. For a Rs 999 broadband plan, Rs 152 is GST.
Hotel stays between Rs 1,000 and Rs 7,500 per night (SAC 996311): Hotel room tariffs between Rs 1,000 and Rs 7,500 per night are at 18% GST. Below Rs 1,000 per night is exempt (0%). Above Rs 7,500 per night is also at 18% (this was previously at 28%, so expensive hotels got a rate reduction).
AC restaurants (SAC 996331): Restaurants with air conditioning — whether standalone or in hotels — charge 18% GST on food and beverages. This applies to dine-in as well as takeaway from AC establishments.
Use our GST calculator to quickly compute the 18% GST on any service fee or product price. It handles both inclusive and exclusive GST calculations.
A range of everyday consumer goods — particularly branded premium products — are at 18% GST. Here we cover the major categories that retailers and distributors need to be aware of:
Premium cosmetics and personal care (HSN 3303–3307): Perfumes, deodorants, shampoos, conditioners, face wash, moisturizers, sunscreen, and beauty products are at 18% GST under HSN 3303-3307. This is unchanged from before GST 2.0 for most cosmetics. Luxury cosmetics above Rs 5,000 per unit moved to 40%.
Packaged drinking water above 20 litres (HSN 2201): Large water cans (20L, 25L) for offices and homes are at 18% GST. Packaged drinking water in bottles below 20 litres is at 18% (bottles above 500ml). Plain water in bottles below 500ml is at 12%... but wait, 12% no longer exists — these items moved to 18% under GST 2.0.
Chocolates and confectionery (HSN 1704, 1806): Chocolates, candy, toffees, and sugar confectionery under HSN 1704 and 1806 (chocolate preparations) are at 18% GST. Premium chocolates like Cadbury Silk, Ferrero Rocher, and Kit Kat are all at 18%.
Ice cream (HSN 2105): Packaged ice cream and frozen desserts are at 18% GST under HSN 2105. This moved up from 12% under GST 2.0 — a Rs 120 ice cream tub now has approximately Rs 18 in embedded GST versus Rs 12.86 before.
Premium footwear above Rs 1,500 (HSN 6401–6405): Sports shoes, leather shoes, branded sneakers, and formal footwear priced above Rs 1,500 per pair are at 18% GST.
Garments above Rs 1,500 (HSN 6101–6114): Branded clothing above Rs 1,500 per piece — premium shirts, designer wear, activewear — is at 18% GST.
The 18% GST slab requires the most work for businesses because it absorbed items from two abolished slabs. Here is a checklist for myBillPlease users:
Items moved DOWN from 28% to 18%: White goods (AC, fridge, washing machine, TV above 32 inches), hotel rooms above Rs 7,500 per night. Change these from 28% to 18% in your product catalog.
Items moved UP from 12% to 18%: Furniture, cement, paints, frozen food, pasta, cereals, ice cream, electric fans, sewing machines. Change these from 12% to 18% in your catalog.
E-invoice compliance: The e-invoice threshold dropped to Rs 5 crore under GST 2.0. If you sell 18% GST items B2B and your business crosses Rs 5 crore turnover, you must generate e-invoices for all B2B transactions. myBillPlease integrates with the IRP portal — enable e-invoice in settings to auto-generate IRN for qualifying invoices.
ITC claims on items moved from 28% to 18%: If you have stock purchased at 28% input tax credit and now sell at 18%, you may have an excess ITC balance. Consult your CA on the transitional credit provisions to handle this correctly in your GST returns.
myBillPlease handles the 18% standard rate, CGST/SGST split, HSN codes, and e-invoice generation. Everything for GST-compliant billing in one place.
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