Explanation
The GST rate structure: 0% — fresh vegetables, milk, books, newspapers, health/education services. 5% — packaged food (lower-tax), transport, restaurants without AC. 12% — processed food, mobile phones, business class air travel. 18% — most services (consulting, IT, professional services), electronics, most manufactured goods. 28% — luxury goods: cars, motorcycles > 350cc, tobacco, air conditioners, dishwashers, cinema tickets > ₹100. On top of 28%, a GST Compensation Cess applies to aerated drinks, tobacco, coal, and high-capacity vehicles. The HSN code determines the applicable rate. Verify on the GST portal (HSN Rate Finder) before applying a rate.