# India GST Guide for 2026: Rates, Registration & Compliance

Canonical: https://trykintsugi.com/sales-tax-guides/apac/india
Published: September 22, 2026

India runs a multi-rate GST with main slabs of 5% and 18%, plus 40% on luxury and sin goods. This guide explains registration thresholds, the CGST/SGST/IGST split, e-invoicing, and return filing for domestic and foreign sellers.

- **SaaS:** Taxable (18%)
- **Digital Goods:** Taxable (18%)

## Key Takeaways

India's Goods and Services Tax (GST) was simplified under the GST 2.0 reform effective September 22, 2025, collapsing most old slabs into 5% and 18% (with a 40% rate reserved for luxury and sin goods); SaaS, IT, and OIDAR services fall in the 18% slab. A business registers once aggregate turnover exceeds INR 40 lakh for goods or INR 20 lakh for services (lower in special-category states), and registration is mandatory regardless of turnover for inter-state suppliers of goods. Many essentials, healthcare, and education are exempt or taxed at 5%; exports are zero-rated.

## Taxability Snapshot

## Sales Tax Rates

India's Goods and Services Tax (GST) was simplified under the GST 2.0 reform effective September 22, 2025. The many old slabs collapsed mainly into 5% and 18%, with a 40% rate reserved for luxury and sin goods. SaaS, IT, and OIDAR services fall in the 18% slab. GST is administered by the CBIC and GST Network; interstate and imported supplies attract IGST.

| Rate | Applies to |
| --- | --- |
| 5% | Essentials and many mass-use items |
| 18% | Standard rate, including SaaS and IT services |
| 40% | Luxury and sin goods |
| 0% / exempt | Many essentials, healthcare, education |

#### Registration & nexus threshold

India uses GST registration thresholds rather than US-style economic nexus. A business must register once aggregate turnover exceeds INR 40 lakh for goods or INR 20 lakh for services, with lower limits of INR 20 lakh and INR 10 lakh in special-category states [6]. Registration is mandatory regardless of turnover for inter-state suppliers of goods and for non-resident providers of online information and database access or retrieval (OIDAR) services to Indian consumers [6]. Registration steps are in the How to Register section.

#### Filing frequency & deadlines

Domestic businesses file GSTR-1 and GSTR-3B monthly or quarterly. Foreign OIDAR providers file GSTR-5A monthly, due the 20th of the following month. Note that GST returns cannot be filed more than three years after the due date.

#### Exemptions

Many essentials, healthcare, and education are exempt or taxed at 5%, and exports are zero-rated. SaaS, IT services, and OIDAR services are taxable at 18% (IGST for cross-border supplies).

#### Penalties

Penalties under Section 122 are the higher of 10% of the tax due or ₹10,000 for non-fraud cases, rising to 100% of the tax for fraud or evasion. OIDAR late fees run ₹200 per day (₹100 for nil returns).

#### Sources

- [1] [Press Information Bureau — 56th GST Council meeting: two-slab GST (5% and 18%, plus 40% special), effective 22 September 2025](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2163555)

- [2] [Press Information Bureau — GST on textiles and apparel (5% up to INR 2,500 per piece; 18% above)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2163905)

- [3] [Press Information Bureau — GST on food items (basic staples nil-rated)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2164586)

- [4] [GST Portal — Registration (GSTIN)](https://www.gst.gov.in/help/registration)

- [5] [GST Portal — Returns (GSTR-1, GSTR-3B, GSTR-9, OIDAR GSTR-5A, input tax credit)](https://www.gst.gov.in/help/returns)

- [6] [Central Board of Indirect Taxes and Customs — GST registration thresholds](https://cbic-gst.gov.in/pdf/01052019-GST-An-Update.pdf)

- [7] [Central Board of Indirect Taxes and Customs — GST (audits and appeals)](https://cbic-gst.gov.in/)

Verified July 2026 against Press Information Bureau, GST Council, and Central Board of Indirect Taxes and Customs guidance.

#### Frequently asked questions

### What are India's GST rates in 2026?

After GST 2.0 (effective September 22, 2025), the main slabs are 5% and 18%, with 40% on luxury and sin goods.

### What is India's GST registration threshold?

₹20 lakh aggregate turnover for services (₹10 lakh in special-category states); foreign OIDAR providers register from the first transaction.

### Is SaaS taxable in India?

Yes. SaaS, IT services, and OIDAR services are taxable at 18% (IGST for cross-border supplies to Indian consumers).

### What are OIDAR services?

Online Information and Database Access or Retrieval services — cloud, SaaS, e-books, streaming, and online ads — which foreign providers must register and charge 18% GST on.

### How do foreign digital sellers file GST in India?

Foreign OIDAR providers file GSTR-5A monthly, due the 20th of the following month.

### What is the penalty for late India GST?

The higher of 10% of tax due or ₹10,000 for non-fraud cases, up to 100% for fraud, plus OIDAR late fees of ₹200 per day.