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GST in 2026: 5%, 18% and the Special 40% Rate

Updated 4 October 2026 · GST

GST UPDATEGST in 20265%, 18% and the special 40% rateFinTaxLife ToolsGST in 2026Current rulesPractical checklistUpdated 4 Oct 2026
On this page
  1. The headline structure is simpler
  2. 40% is not the default
  3. Classification still matters
  4. What changed in FinTaxLife Tools

The headline structure is simpler

The 56th GST Council meeting recommended a 5% merit rate and 18% standard rate, with a special 40% de-merit rate for specified goods and services.

40% is not the default

The IRP production environment added 40% to its tax-rate master in September 2025. A modern calculator should support it without suggesting that every supply is taxed at 40%.

Classification still matters

An amount alone cannot determine the GST rate. HSN/SAC classification, exemptions and other conditions determine the actual treatment.

What changed in FinTaxLife Tools

The GST Calculator now offers 0%, 0.25%, 3%, 5%, 12%, 18%, 28% and 40% choices and explicitly tells users to verify classification.

Source: GST Council — 56th Meeting Press Release.

Try GST Calculator →

Frequently asked questions

Is 40% GST applicable to everything?

No. It is a special de-merit rate for specified goods and services.

Can I use 18% when I am unsure?

Do not guess. Verify the HSN/SAC and current rate schedule.

Will the calculator need future updates?

Yes. GST rates and classifications can change through decisions and notifications.