Goods and Services Tax
Also called GST and GST 2.0
India's single tax on the supply of goods and services, charged at each stage and credited back to businesses as input tax credit. Since 22 September 2025 it runs on two main rates, 5 and 18 percent, plus 40 percent on a short list of sin and luxury goods; the 12 and 28 percent rates are gone.
Why it matters
GST shapes your price, your margins and your cash flow: you charge it, claim credit for what you paid, and file returns every month or quarter. After the September 2025 change most goods that were at 12 percent moved to 5 and most at 28 percent moved to 18, so check the current rate for your HSN or service code rather than an older price list.
For example
A D2C snacks brand rechecks the rate on each product's HSN code after 22 September 2025, reprices its catalogue, and updates the invoices its billing software generates.
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Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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