Multi-tiered system
Tax rate 0%
- 50% of the consumer price basket, including foodgrains
Tax rate 5%
- Mass consumption items like spices and mustard oil
Tax rate 12%
- Processed food
Tax rate 18%
- Soap, oil, toothpaste, refrigerator, smartphones
Tax rate 28%
- White good, cars
Tax rate 28% + cess
- Luxury cars, pan masala, tobacco, aerated drinks