What is the GST rate in India?

The standard GST (Goods and Services Tax) rate in India is 18% (slabs nil/5/18/40%), verified against Goods and Services Tax Network on 19 August 2026. A reduced rate of 5% applies to some categories. Dual GST: each supply carries CGST+SGST (intra-state) or IGST (inter-state); input tax credit flows along the chain. Since 22 September 2025 the slabs are nil, 5% and 18%, with a 40% rate on sin and luxury goods.

What is the top income tax rate in India?

The top personal income-tax band in India is 30% for the 2026-27 (AY 2027-28) tax year, verified against Income Tax Department, India on 20 August 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.

What is the company tax rate in India?

The headline corporate tax rate in India is 25%, with 22% for qualifying smaller companies, verified against Income Tax Department on 6 October 2026. Domestic companies: 25% (turnover up to ₹400cr) or 22% concessional regime. Other domestic companies pay 30%. Surcharge and 4% health & education cess apply on top and are not included.

How is capital gains tax charged in India?

In India, gains are taxed at their own rate, separate from income, as published by Press Information Bureau, Government of India (checked 6 October 2026, verification pending). On shares: Listed equity shares (STT-chargeable): short-term gains 20% (Income-tax Act 2025 s196, formerly 1961 Act s111A); long-term gains 12.5% on gains exceeding Rs 1,25,000 (s198, formerly s112A; STT paid on acquisition and transfer). Plus surcharge and cess. Holding period: Listed securities / equity-oriented fund units are long-term if held more than 12 months; other assets (incl. unlisted shares) more than 24 months (s2(101)).

Can an AI assistant look up tax rates for India?

Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the GST rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.

Tax in India: GST, income tax, company tax, capital gains

18% (slabs nil/5/18/40%)

A destination-based tax with two main slabs, split into central (CGST) and state (SGST), or integrated (IGST) across states. The rate is verified against Goods and Services Tax Network on 19 August 2026; the top personal income-tax rate is 30% (2026-27 (AY 2027-28) tax year, Income Tax Department, India), and the headline company tax rate is 25% (Income Tax Department).

Source:GSTN / CBIC· verified Aug 2026

GST in India

Dual GST: each supply carries CGST+SGST (intra-state) or IGST (inter-state); input tax credit flows along the chain. Since 22 September 2025 the slabs are nil, 5% and 18%, with a 40% rate on sin and luxury goods.

Standard rate: 18% (slabs nil/5/18/40%)
Local name: GST — Goods and Services Tax
Type: GST
Reduced rates: 5%
Registration threshold: INR 40 lakh goods / 20 lakh services
Filing: Monthly/quarterly (GSTR-1, GSTR-3B)
Authority: Goods and Services Tax Network
Current rate since: 22 September 2025

✓ verified Aug 2026 · GSTN / CBIC

Introduced 1 July 2017

GST required amending the Constitution itself: the 101st Amendment Act, 2016 (President's assent 8 Sept 2016) conferred a simultaneous power on Parliament and the State Legislatures to tax goods and services and created a GST Council to set rates jointly. It launched at the stroke of midnight on 30 June/1 July 2017 in a special session of Parliament's Central Hall, where President Pranab Mukherjee and PM Modi pressed a button to switch it on, an event evoking India's 1947 independence midnight session and boycotted by several opposition parties (Congress, Trinamool, DMK, the Left).

What it replaced: A patchwork of central and state indirect taxes (commonly counted as ~17 taxes plus several cesses), including Central Excise Duty, Service Tax, State VAT, Central Sales Tax, Entry Tax (incl. Octroi), Luxury Tax, Entertainment Tax, and taxes on betting/lotteries.

Income tax in India

The top personal income-tax band is 30% for the 2026-27 (AY 2027-28) tax year (shown as 30% + surcharge/cess in the rates table, which includes levies).

✓ verified Aug 2026 · Income Tax Department, India

India income tax calculator →

Company tax in India

The headline corporate tax rate is 25%, with 22% for qualifying smaller companies. In effect since 20 September 2019.

Domestic companies: 25% (turnover up to ₹400cr) or 22% concessional regime. Other domestic companies pay 30%. Surcharge and 4% health & education cess apply on top and are not included.

✓ verified Oct 2026 · Income Tax Department

India company tax calculator →

Capital gains tax in India

Shares: Listed equity shares (STT-chargeable): short-term gains 20% (Income-tax Act 2025 s196, formerly 1961 Act s111A); long-term gains 12.5% on gains exceeding Rs 1,25,000 (s198, formerly s112A; STT paid on acquisition and transfer). Plus surcharge and cess.
Property: Long-term (held >24 months): 12.5% without indexation (s197(1)). Resident individuals/HUFs disposing of land or buildings acquired before 23 July 2024 pay the lower of 12.5% without indexation and 20% with indexation (s197(3)). Short-term (<=24 months): taxed as ordinary income at slab rates.
Holding period: Listed securities / equity-oriented fund units are long-term if held more than 12 months; other assets (incl. unlisted shares) more than 24 months (s2(101)).

Unverified · confirm with Press Information Bureau, Government of India

India capital gains tax calculator →

Did you know? India tax facts

India switched on GST at the stroke of midnight in a special session of Parliament's Central Hall, evoking India's 1947 independence midnight session, with the President and PM literally pressing a button to launch it on a digital screen.
A minute after midnight on 1 July 2017, President Pranab Mukherjee and PM Modi pressed a button to launch GST in the Central Hall; Modi invoked an Einstein remark on the difficulty of understanding (income) tax, while Congress, Trinamool, the DMK and the Left boycotted the event, calling it a self-promoting 'tamasha' that insulted the freedom struggle.
Source: India TV News ↗
The World Bank ranked India's 28% top GST slab as the second-highest such rate among a sample of 115 countries, and India was one of only five nations (with Italy, Luxembourg, Pakistan and Ghana) using four or more separate GST/VAT rates.
The March 2018 World Bank India Development Update called India's GST one of the most complex in the world, citing multiple rates, a high peak rate and many exemptions.
Source: Business Today ↗
India's monthly GST haul hit a record 2.37 lakh crore rupees (about US$28 billion) in April 2025, the biggest single-month collection since the tax began in 2017.
The gross figure was up 12.6% over April 2024, driven by year-end filings and strong domestic and import activity.
Source: Business Today ↗
GST couldn't be passed as an ordinary law; it required amending the Indian Constitution to create a brand-new shared taxing power and a GST Council where the Centre and all the states decide rates together.
The Constitution (101st Amendment) Act, 2016 conferred simultaneous GST powers on Parliament and the state legislatures and set up the GST Council, subsuming roughly 17 central and state levies into one tax.
Source: CBIC, Government of India (cbic-gst.gov.in) ↗
On top of the old 28% maximum, India layered an extra 'compensation cess' on sin and luxury goods; in the September 2025 'GST 2.0' overhaul the four-slab structure was simplified to mainly 5% and 18%, the cess was largely scrapped, and a single new 40% slab was created for sin and luxury goods.
The GST Council announced the changes on 3 September 2025, effective 22 September 2025: the 12% and 28% slabs were abolished, the compensation cess discontinued (except on tobacco/pan masala products), and 40% applied to items like tobacco, aerated drinks, high-end cars, yachts and private aircraft.
Source: Press Information Bureau, Government of India ↗
India's first Income-tax Act was introduced in February 1860 by James Wilson to refill a treasury drained by the 1857 uprising; the Viceroy assented on 24 July 1860.
Wikipedia: 'the first Income-tax Act was introduced in February 1860 by James Wilson' amid an acute post-1857 financial crisis; the 1922 Act shifted administration from provincial to central control, and the Income-tax Act 1961 'became effective on 1 April 1962' with 298 sections and fourteen schedules.
Source: Wikipedia — Income tax in India · checked 10 October 2026 ↗
After 64 years the Income-tax Act 1961 has been retired: the Income Tax Act 2025 passed Parliament on 11–12 August 2025, got assent on 21 August and took effect on 1 April 2026, cutting over 800 sections to 536.
Wikipedia: the bill passed the Lok Sabha on 11 August 2025 and the Council of States on 12 August 2025, 'became law upon receiving Presidential assent on 21 August 2025' and came into force on 1 April 2026; it merges the separate 'Assessment Year' and 'Previous Year' concepts into a single 'Tax Year'.
Source: Wikipedia — Income Tax Act, 2025 · checked 10 October 2026 ↗
Indian taxpayers choose between two income-tax regimes: the 'old' one with deductions such as Section 80C's ₹1.5 lakh, and the 'new' one with lower rates and fewer deductions, introduced from FY 2020–21.
Wikipedia: the new regime was announced in Budget 2020 and took effect in FY 2020–21; 'Currently, Indian taxpayers can choose between the old tax regime and the new tax regime'; the deductions list shows '§80C – Up to ₹ 150,000'.
Source: Wikipedia — Income tax in India · checked 10 October 2026 ↗

More stories, for every country that has one, on the tax facts page.

Ask your AI assistant about tax in India

The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:

“What is the GST rate in India, and what is the source?”
“Estimate income tax in India on INR 60,000 for 2026-27 (AY 2027-28).”
“What is the company tax rate in India and how is it sourced?”

Connect in three steps, and what a connected answer looks like: Tax MCP.

India, answered

Questions about tax in India

What is the GST rate in India?: The standard GST (Goods and Services Tax) rate in India is 18% (slabs nil/5/18/40%), verified against Goods and Services Tax Network on 19 August 2026. A reduced rate of 5% applies to some categories. Dual GST: each supply carries CGST+SGST (intra-state) or IGST (inter-state); input tax credit flows along the chain. Since 22 September 2025 the slabs are nil, 5% and 18%, with a 40% rate on sin and luxury goods.
What is the top income tax rate in India?: The top personal income-tax band in India is 30% for the 2026-27 (AY 2027-28) tax year, verified against Income Tax Department, India on 20 August 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.
What is the company tax rate in India?: The headline corporate tax rate in India is 25%, with 22% for qualifying smaller companies, verified against Income Tax Department on 6 October 2026. Domestic companies: 25% (turnover up to ₹400cr) or 22% concessional regime. Other domestic companies pay 30%. Surcharge and 4% health & education cess apply on top and are not included.
How is capital gains tax charged in India?: In India, gains are taxed at their own rate, separate from income, as published by Press Information Bureau, Government of India (checked 6 October 2026, verification pending). On shares: Listed equity shares (STT-chargeable): short-term gains 20% (Income-tax Act 2025 s196, formerly 1961 Act s111A); long-term gains 12.5% on gains exceeding Rs 1,25,000 (s198, formerly s112A; STT paid on acquisition and transfer). Plus surcharge and cess. Holding period: Listed securities / equity-oriented fund units are long-term if held more than 12 months; other assets (incl. unlisted shares) more than 24 months (s2(101)).
Can an AI assistant look up tax rates for India?: Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the GST rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.

Sources

Last checked 10 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.

← 🇮🇸 Iceland All 193 countries 🇮🇩 Indonesia →

See every rate side by side in the tax rates table, put India next to another country in the comparison tool, or read the tax facts.

Explore the tax tools

All tools →

Compare tax by country

Put countries side by side — rates, local names, structure and filing.

GST Calculator

Add or remove GST/VAT on any amount, with the formula shown every time.

Tax facts

The weird, wonderful and true history of GST and VAT — every fact sourced.

BAS Calculator (AU)

Your quarterly GST position — 1A, 1B and the net amount payable, worked out for you.

Income Tax & Take-Home

Your income tax, Medicare levy and take-home pay on any salary.

UK Income Tax & Take-Home

Your UK income tax, National Insurance and take-home pay — England, Wales & NI rates.

India Income Tax & Take-Home

Your India income tax on the new regime — the ₹75k standard deduction, the ₹12L rebate and 4% cess, with take-home.

US Income Tax & Take-Home

Your US federal income tax, Social Security and Medicare — single filer, with take-home pay.

Finland Income Tax & Tax Card

Your Finnish take-home pay and tax-card percentage (veroprosentti) — any municipality, church tax, YLE tax and contributions.

HECS/HELP Repayment

Your compulsory study-loan repayment on the marginal system, and what a pay rise really adds.

Superannuation (AU)

Your Super Guarantee, how much concessional cap is left, and whether Division 293 catches you.

Capital Gains Tax

Sold an asset? Fin covers CGT in 71 countries — a figure where the rules are verified, the rule itself otherwise.

Crypto Tax (AU)

Sold or swapped crypto? Fin works out the CGT — same 50% discount, at your marginal rate.

Business Space at Home (AU)

A desk or a place of business? The deductions each year against the CGT on that share when you sell.

Tax Deduction Finder (AU)

Pick your work and how you earn, and get a checklist of what to claim and where each claim goes.

Company Tax Calculator

See the tax on your company’s profit in 139 countries — every rate sourced.

Tax MCP for agents

Connect Claude, ChatGPT or your own agent to live tax rates.