5% GST Items List 2026: Complete Product List After Rate Change

The 5% GST rate is called the merit rate — it applies to goods and services that are important for the general public but do not qualify for full exemption. Under GST 2.0 (effective September 22, 2025), the 5% slab was significantly expanded as a direct consequence of abolishing the 12% slab. Everything in the old 12% slab moved to either 5% or 18%. Essential consumer goods moved down to 5%; non-essential goods moved up to 18%.

This means a retailer in India who stocks soaps, juices, basic medicines, and packaged food can now charge less GST on many of their products — or keep the selling price the same and absorb a better margin. For consumers, goods in the 5% slab cost approximately 6% less than when they were at 12% (a Rs 100 product at 12% cost Rs 112; at 5% it costs Rs 105).

For businesses with large FMCG catalogs, the shift from 12% to 5% on multiple product categories requires a bulk update of GST rates in billing software. We will cover every item with its HSN code so you can identify which products need to be updated. Use our HSN code finder to verify the current rate for any product.

A large number of packaged and processed food items moved from 12% to 5% under GST 2.0. Here are the major categories with their HSN codes:

Packaged cereals and grains (HSN 1001–1008): Branded and packaged wheat (atta in packages above 25kg moved from 5% to 0%, but smaller retail packs remain at 5%), branded rice above 5kg packs, and mixed grain packages. Plain unprocessed grain has always been at 0%; packaged branded variants were at 12% and are now at 5%.

Sugar and sugar products (HSN 1701–1702): Packaged refined sugar, jaggery blocks, and sugar syrups in retail packs were at 12% and are now at 5%. Plain bulk sugar was always at 5%.

Edible oils (HSN 1507–1515): Packaged groundnut oil, sunflower oil, mustard oil, rice bran oil, and coconut oil in retail containers were at 12% and are now at 5%. Bulk/loose edible oils remain at 5% (no change).

Packaged spices (HSN 0904–0910): Branded packaged spices — turmeric, cumin, coriander, pepper, cardamom, cloves — in retail packs moved from 12% to 5%. Unpackaged fresh spices were always at 0%.

Fruit juices (HSN 2009): Packaged 100% fruit juices without added sugar moved from 12% to 5%. Mixed fruit juices, mango juice, orange juice, and grape juice packs are all now at 5%. Note: sweetened fruit drinks with carbonation are at 40% (not this category).

Packaged namkeen and snacks (HSN 2106): Ready-to-eat namkeen, bhujia, and savory snacks in retail packs moved from 12% to 5%. This benefits mass-market snack brands as well as small-scale namkeen manufacturers.

The pharmaceutical category has always been at 5% for most OTC medicines, but GST 2.0 brought some previously 12% items down to 5%:

OTC medicines and common drugs (HSN 3003, 3004): Most prescription and over-the-counter medicines were and continue to be at 5% GST. Tablets, capsules, syrups, and injections under HSN 3004 are at 5%. Certain specialty drugs that were at 12% have been moved to 5%.

Ayurvedic, Unani, Siddha medicines (HSN 3003 90): Patent ayurvedic medicines, herbal tablets, churna, and formulations are at 5% GST. This was unchanged from before, but confirmed under GST 2.0 notifications.

Diagnostic kits (HSN 3822): Blood glucose test strips, pregnancy test kits, COVID test kits, and other diagnostic reagents moved from 12% to 5%. This directly reduces the cost of self-diagnostic healthcare.

First-aid supplies (HSN 3005): Adhesive bandages, wound dressings, antiseptic gauze, and cotton wool for medical use are at 5%. Moved from 12% under GST 2.0.

Wheelchairs and mobility aids (HSN 8713): Manually propelled wheelchairs, walking sticks, crutches, and artificial limbs are at 5% GST (unchanged — always been a merit rate item).

Contraceptives (HSN 3006 60): All contraceptives remain at 0% GST — completely exempt. This was not changed under GST 2.0.

Apparel and footwear have a price-based GST structure. The 5% rate applies below a price threshold, with higher rates for premium items:

Readymade garments below Rs 1,500 per piece (HSN 6101–6114): T-shirts, shirts, sarees, salwar kameez, trousers, and other garments with a retail price below Rs 1,500 per piece are at 5% GST. HSN 6109 covers T-shirts and vests; HSN 6105 covers men's shirts; HSN 6106 covers women's blouses. If the MRP exceeds Rs 1,500, the rate is 18%.

Knitted fabrics below Rs 1,500 (HSN 6001–6006): Knitted and woven fabrics for garment manufacturing below the price threshold are at 5%.

Footwear below Rs 1,500 per pair (HSN 6401–6405): Shoes, sandals, slippers, and other footwear with a retail price below Rs 1,500 per pair are at 5% GST. This covers the mass market footwear segment entirely — budget chappals, school shoes, basic sneakers. HSN 6404 (footwear with rubber soles) and HSN 6405 (other footwear) are the primary codes. Footwear above Rs 1,500 per pair is at 18%.

School bags and children's bags (HSN 4202): School bags priced below Rs 1,500 are at 5% GST. Above that price, 18% applies.

For apparel and footwear retailers, the price-based threshold creates a billing complexity — the same product at different price points attracts different GST rates. Make sure your billing software enforces this rule. In myBillPlease, set up products with the price range clearly defined so the correct rate is applied at the time of sale.

Several important product categories moved from 12% to 5% under GST 2.0 that do not fit neatly into the above sections:

Soaps and detergents (HSN 3401, 3402): Bath soaps (Lifebuoy, Dettol, Lux, Pears), bar soaps, liquid soaps, washing powder (Surf, Ariel, Rin), and liquid detergents moved from 12% to 5%. HSN 3401 covers soap; HSN 3402 covers synthetic detergents. For FMCG distributors, this category is significant — update all soap and detergent products in your billing catalog.

Toothpaste and oral care (HSN 3306): Toothpaste (Colgate, Pepsodent, Close-Up), toothbrushes (HSN 9603), and mouthwashes moved from 12% to 5% under GST 2.0. HSN 3306 10 00 specifically covers dentifrices (toothpaste).

Hair oils (HSN 3305): Coconut hair oil, herbal hair oil, and medicated hair oil in retail packs moved from 12% to 5%. HSN 3305 covers preparations for use on hair.

Bicycles (HSN 8712): All non-motorized bicycles — including children's cycles, adult cycles, and geared bicycles — moved from 12% to 5% GST. Bicycle parts and accessories (HSN 8714) also moved from 12% to 5% for parts priced below Rs 1,000.

LPG cylinders for household use (HSN 2711): Domestic LPG cylinders remain at 5% GST (unchanged). This was one of the merit rate items specifically protected under GST 2.0.

Solar energy equipment (HSN 8541): Solar panels, solar cells, and solar lamps remain at 5% GST. The government confirmed this under GST 2.0 to continue supporting the renewable energy sector.

Use the HSN code finder to verify the current rate for any specific product. Type the product name and the tool will show the HSN code and applicable GST rate based on post-GST 2.0 classifications.