India’s GST rate changes were implemented in phases, so “new 2026 GST slabs” is not a precise description. Most notified goods and services moved to the revised structure from 22 September 2025. A separate transition placed specified pan masala, tobacco, cigarette and nicotine-inhalation products at 40% from 1 February 2026. The correct rate still depends on the exact HSN or SAC classification and effective notification.
What changed, and when?
The 56th GST Council recommendations simplified much of the rate structure around a 5% merit rate and an 18% standard rate, with 40% reserved for specifically notified demerit, luxury and actionable-claim categories. The general goods and services changes took effect on 22 September 2025, except for the identified pan masala and tobacco group, whose revised treatment was deferred.
From 1 February 2026, pan masala, cigarettes, most tobacco products other than bidis, and specified nicotine-based inhalation products moved to 40%. Bidis are subject to 18%, not 40%.
Which goods can attract 40% GST?
The notified scope includes classifications covering specified sweetened, flavoured, caffeinated or carbonated beverages; larger passenger vehicles and hybrids outside the small-vehicle thresholds; motorcycles above 350cc; personal-use aircraft; yachts and pleasure vessels; revolvers and pistols; smoking pipes and cigarette holders; and the specified pan masala, tobacco, cigarette and nicotine-inhalation group.
This description is a navigation aid, not a substitute for classification. A product’s marketing name—such as “luxury item” or “energy drink”—does not by itself determine the rate.
Why the calculator still includes 12% and 28%
The CheckMatter GST Calculator includes 0%, 3%, 5%, 12%, 18%, 28%, 40% and a custom option. The preset performs arithmetic only. A 12% or 28% preset may still be useful for checking an older invoice, a transaction before the relevant effective date, or an item-specific classification that the applicable notification still places at that rate. Its presence does not mean every old-rate product remains at that rate.
Worked arithmetic examples
After confirming the legally applicable rate, the calculator can add GST to a taxable value or separate GST from an inclusive total:
- ₹1,000 at 5% produces ₹50 GST and a ₹1,050 total.
- ₹1,000 at 18% produces ₹180 GST and a ₹1,180 total.
- ₹1,000 at 40% produces ₹400 GST and a ₹1,400 total.
These examples demonstrate arithmetic only; they do not classify any product or service.
Check these details before invoicing
- Confirm the exact HSN or SAC code, not only the product name.
- Check whether the supply date falls before or after the notification’s effective date.
- Verify place-of-supply, exemption, reverse-charge and input-tax-credit treatment.
- For pan masala and tobacco products, account for the RSP-based valuation rules effective 1 February 2026.
- Use the current notification when a rate table, saved invoice template or POS preset conflicts with official guidance.
Official sources
- GST Council: 56th meeting recommendations and phased implementation
- GST Council: February 2026 tobacco and pan-masala transition summary
- GST Council rate notifications
- CBIC goods and services rate schedule
FAQ
Does every luxury product attract 40% GST?
No. The 40% rate applies only where the relevant notification and HSN/SAC classification place the supply in that schedule.
Is bidi taxed at 40%?
No. The notified February 2026 structure places bidi at 18%, while the specified tobacco products other than bidis are in the 40% group.
Can I select 40% just because a product seems similar to a listed item?
No. Confirm the exact classification and effective notification first, then use the calculator for the arithmetic.
Official sources last checked: 11 September 2026. This guide is educational and is not tax or legal advice. Independent professional review is not claimed.