Updated GST Rates 2026: Complete HSN Code Wise List (Old vs New)

The Goods and Services Tax (GST) regime in India is a dynamic landscape, constantly evolving to meet the economic and fiscal needs of the country. The GST Council periodically reviews and revises the tax rates applicable to various goods and services. As of 2026, significant changes have been made to the GST rates, specifically categorized under HSN (Harmonised System of Nomenclature) codes. Understanding these updates is crucial for businesses to ensure compliance and optimize tax efficiency.

GST is a comprehensive, multi-stage, destination-based tax levied on every value addition. It has subsumed various indirect taxes such as VAT, service tax, and excise duty, simplifying the tax structure in India.

HSN codes are internationally recognized system codes used to classify goods in a systematic manner. In India, these codes are used to categorize products for GST purposes, ensuring uniformity in tax rates across the country. The use of HSN codes is mandatory for all businesses with an annual turnover exceeding ₹5 crores.

In its latest meeting, the GST Council has revised rates for several goods and services. These changes are aimed at correcting the inverted duty structure, addressing revenue shortfalls, and promoting domestic manufacturing.

• Textiles and Apparel (HSN Code 61 to 63): The GST rate for textiles has been rationalized from 5% to 12% to correct the inverted duty structure that was affecting input tax credit claims.

• Footwear (HSN Code 64): Previously taxed at 5% for items below ₹1,000, the rate is now standardized at 12% for all categories.

• Pharmaceuticals (HSN Code 30): Certain drugs and medicines have seen a reduction in GST from 12% to 5% to make them more affordable.

Businesses must update their accounting systems to reflect the new GST rates. This involves modifying billing software, recalibrating tax calculations, and ensuring that all invoices align with the updated rates.

Companies may need to reassess their pricing strategies to maintain competitiveness. The increase in tax rates for certain categories, such as textiles, could lead to higher end-user prices unless absorbed by the supply chain.

Stay updated with the latest GST notifications and circulars. The CBIC website is a reliable source for the official updates.

Engaging with a Chartered Accountant or GST consultant can provide tailored advice on handling these changes effectively, especially for businesses with complex supply chains.

Ensure that your accounting and tax teams are well-trained in the new GST compliance requirements. Regular workshops can be beneficial for keeping the team updated.

HSN Code Description Old Rate New Rate 61-63 Textiles and Apparel 5% 12% 64 Footwear 5% (below ₹1,000) 12% 30 Pharmaceuticals 12% 5%

Each sector will experience the impact of these changes differently. For instance, the textile industry may face initial cost pressures, whereas the pharmaceutical industry could benefit from lower tax rates, enhancing affordability.

• The GST rate revisions for 2026 aim to address the inverted duty structure and enhance domestic manufacturing.

• Key changes include increased rates for textiles and footwear, while pharmaceuticals see a reduction.

• Businesses must update their compliance systems, pricing strategies, and seek professional guidance to adapt effectively.

• Staying informed through official channels and regular staff training is crucial for smooth transitions.

By understanding and adapting to these updated GST rates, businesses can ensure compliance while strategizing effectively to manage their tax burdens and pricing policies. For detailed updates, refer to the CBIC website.