New GST Rates List 2026: Industry-Wise Tax Slabs & Sector Impact

22 February 2026

Like every year, India’s budget for 2026 has a massive update in the rules of GST (Goods and Services Tax). Want to learn?

Let’s dive deep into what the new GST rates are by industry for 2026.

What is GST? (The "Pocket Money" Explanation)

Suppose you have ₹100, and every time when you buy a chocolate bar, you need to put ₹5 additionally into its bill. That’s basically what GST is. Simply put, it’s a little bit of extra money that you add to the price of things you buy. This amount goes to the government account, which supports the country's development.

So this year, the GST law is revised. And this revision has removed a lot of confusion that used to exist before this update. Now, the government has simply segmented it into four main groups, removing too many slabs.

1. The "Free" Zone: 0% GST (Essentials)

This GST is for commodities, or things that we need to sustain life. Showing some leniency, the government has made these things affordable by removing GST from them, so even a poor person can afford them. Here is the list of these commodities:

Fresh Foods: Things like milk, eggs, fresh veggies, and fruit.
Health: Life-saving medicines and even health insurance now will be available at 0% tax.
Learning: Your school books, notebooks, and even maps are exempt from GST.

Why it matters: This idea works because it removes additional burden on everyone’s budget and supports people to stay healthy. Even going to school does not cost them extra.

2. The "Everyday" Zone: 5% GST (Merit Rate)

This category of things includes some things that we use all the time. So, a few commodities, including other ones, are not quite free of tax. In 2026, life is going to be not-so-stressful because of these cheaper items:

Kitchen Items: Butter, ghee, cheese, and even those yummy snacks like namkeen and bhujia.
Cleaning Up: Shampoo, toothpaste, and hair oil have been shifted from a higher tax bracket down to 5%.
Getting Around: Bicycles and even economy flight tickets are a little cheap.

Expert Note: So, the basic items like toothpaste are no longer that expensive, as their GST is moved from 18% to 5%, which means that the government is the voice of the people.

3. The "Standard" Zone: 18% GST (Modern Life)

This is the most crucial rate for those who often invest in electronic appliances. So, if you are a techy guy, this is certainly for you:

Gadgets: Smartphones, laptops, and those big-screen TVs.
Home Comfort: Air conditioners and refrigerators that were once more expensive are now bracketed at 18%.
Eating Out: Those who often visit a nice restaurant can enjoy their meal at 18% GST only.

4. The "Luxury & Sin" Zone: 40% GST

As it’s on luxurious items, the government wants to discourage investment in these things because they are not that healthy or good for health.

Fancy Rides: Luxury cars and super-powerful motorcycles (above 350 cc).
Bad Habits: Tobacco and "fizzy" sugary drinks are now more expensive, so people can switch to healthier choices.
Online Gaming: Professional gaming and betting are like addiction. That’s why they are in this high-tax group.

New GST Rates by Industry/Sector - 2026 Table

For those who want to discover how different industries are taxed, this section discloses:

Industry Sector	Key Items	New GST Rate (2026)
Agriculture	Fertilizers, Tractors, Seeds	5%
Food & Beverage	Fresh Groceries	0%
Electronics	Phones, Laptops, Fridges	18%
Healthcare	Life-saving Drugs, Insurance	0%
Luxury Goods	Premium Cars, Soft Drinks	40%
Jewelry	Gold and Silver	3% (Special Rate)

Why did the GST rates change in 2026?

Are you wondering why the aforesaid changes are implemented? Well, the 2026 GST update outlines three big goals, which are here:

Simplicity: The slabs for 12% and 28% GST no longer exist. Now, tax consultants and people have only fewer numbers to remember.
Affordability: Families can now save money by lowering their investment on things like shampoo and fridges.
Digital Power: The whole tax system is now digitalized, which means businesses can now pay it online and get back to work.

How to Calculate the New Price?

So, for those who are interested to discover how GST is calculated, here is the math:

Final Price = Base Price + (Base Price X GST Rate/100)

So, if you buy a toy worth ₹1,000 and the GST is 18%, the tax will be ₹180. So, its total cost will be ₹1,180!

Conclusion

The 2026 GST updates define an effort to simplify tax for the countrymen. So, these updates are indeed crucial to see what leverages and deficits they can bring to the common man’s pocket. And tax experts can also provide a transparent experience to everyone, from shopkeepers to parents. So, next time when you go to buy any product, remember the GST slabs. They help understand the value of everything