GST Rates for Services in India – 2025 Overview
Under GST, services are classified using SAC (Services Accounting Code) and taxed at rates of 5%, 12%, 18%, or 28%. Some services are exempt (0%). The GST Council periodically revises these rates, and staying updated is essential for accurate invoicing and compliance.
Services Exempt from GST (0%)
- Healthcare services by clinical establishments and authorized medical practitioners
- Educational services by schools, colleges, and recognized institutions
- Services by the Reserve Bank of India
- Agricultural services like harvesting, cultivation, and supply of farm labor
- Public transport services (non-AC buses, metro, local train)
- Funeral, burial, crematorium services
- Services by government entities related to sovereign functions
Services at 5% GST
| Service | SAC Code | GST Rate |
|---|---|---|
| Transport of goods by road (GTA with ITC) | 9965/9967 | 5% |
| Transport of passengers by air (economy class) | 9964 | 5% |
| Tour operator services (without ITC) | 9985 | 5% |
| Housekeeping services (below ₹25,000/month) | 9985 | 5% |
| Job work services (textiles, agriculture) | 9988 | 5% |
Services at 12% GST
| Service | SAC Code | GST Rate |
|---|---|---|
| Transport of passengers by air (business class) | 9964 | 12% |
| Construction of affordable housing (PMAY) | 9954 | 12% |
| Work contract for government entities | 9954 | 12% |
| Renting of hotels (₹1,001–₹7,500/day) | 9963 | 12% |
| Transport of goods by rail or vessel | 9965 | 12% |
Services at 18% GST
The majority of services fall under the 18% GST slab:
- IT and software services (SAC 9983) – Development, maintenance, consulting
- Professional and consulting services (SAC 9983) – Legal, accounting, CA, engineering
- Telecommunication services (SAC 9984)
- Financial and insurance services (SAC 9971) – Banking, brokerage, fund management
- Restaurant services with ITC (SAC 9963)
- Renting of commercial property (SAC 9972)
- Advertising services (SAC 9983)
- Event management and entertainment (SAC 9996)
- Repair and maintenance services (SAC 9987)
Services at 28% GST
- Five-star hotel accommodation (room tariff above ₹7,500/day)
- Race club betting and gambling
- Amusement park and theme park services
- Cinema exhibition services (above ₹100 ticket)
How to Determine the Correct GST Rate
- Identify the nature of service provided
- Find the applicable SAC code from the GST rate schedule
- Check for any specific exemption notifications
- Determine if the service qualifies for a concessional rate
- Apply the correct rate on your invoice
Accurate GST Rates on Every Invoice with FileWithUs.ai
FileWithUs.ai maintains an updated database of GST rates and SAC codes. When you create an invoice, the platform automatically suggests the correct rate based on the service description, reducing errors and ensuring compliance with the latest GST Council notifications.
Simplify Your Tax & Business Management
FileWithUs.ai helps you file income tax returns, create GST invoices, track compliance, and manage your business — all in one platform.
GST rates for services India 2025GST rate list servicesSAC code with GST rateGST on professional servicesGST rate for IT servicesservice tax rate under GSTGST exempt services list 2025