GST on Commercial Property Rent in India
21 Feb, 2026
By Online Legal India
Published On 14 Jan 2026
Category GST
The types of GST in India are a complex subject to understand for many people. The government imposes Goods and Services Tax (GST) on the supply of goods and services in India. It is a unified tax structure. It has replaced various state and central taxes. Hence, the process of business has been simplified.
However, do you know that there are several types of GST in India? Knowing all these types is essential whether you are a business owner or a consumer. GST directly affects how much tax you pay.
Sounds informative, right? Sit tight, as in this guide, we will walk you through the different types of GST, their application, and the importance of each one. Before we directly jump into the topic, you need to know what GST is.
GST refers to a precise tax system. It unifies the indirect taxation in India. GST is a single tax on the supply of goods and services. GST helps in reducing the tax cascading and simplifying the tax system. In the year 2017, GST came into existence. GST has replaced many previous taxes such as VAT, service tax, and excise duty and so on.
Mainly, there are four types of GST in India. It determines how the government collects and applies the taxes. There are four types of GST in India: CGST, SGST, IGST and UTGST.
In contrast to the pre-GST era in India, there were multiple taxes. These were central excise, service tax, and state VAT. However, currently, there are four types of GST applicable across India.
The list is there, simplified for you!
While the supply of goods and services takes place within a state or territory, you can also call it intra-state transactions. It comes under the SGST/UGST.
Besides this, when the supply of goods or services happens between states, we call it inter-state transactions. Here, IGST is applicable.
Furthermore, the use of a correct GSTIN is also important to identify the applicability of tax components.
The different types of GST and their applicability
Application
Still feeling confused about IGST? Here is how it is calculated:
For instance, a businessman by the name of M/S XYZ Ltd from Chandigarh has sold goods to ABC Ltd from Daman and Diu in India. Let's assume the amount of goods sold is 100000/-. Here, 18% GST refers to the IGST. Now, the dealer has changed 18000as IGST. After this, it (IGST) will go to the center, and Daman and Diu (applicable if it is the ultimate consuming state).
Application
Application
To make it easier for you to understand, I will state an instance here:
If you have read so far, and are still feeling confused as to how CGST and SGST are calculated? Let me explain it to you in simple words.
Consider you are the owner of CDE Private Limited from West Bengal (Kolkata), and you are selling your products to M/S GHI (in simple terms, your buyer). M/S GHI is from Jharkhand. Here, both CGST and SGST will be applicable.
Both the State governments of West Bengal and the state government of Jharkhand, along with the Central government of India, need to agree on combining their levies. In this case, they (both governments) share an appropriate proportion of revenue between them.
Consider yourself as CDE (the same seller or dealer) in Kolkata, and you are selling your products to M/S MNO in Kolkata.
Let’s assume that the total worth of goods is 10000/-. The GST rate is 18%.
Here, we divide this 18% into a 9% and 9% ratio. You (the dealer) will collect a total of Rs. 1,800 and deposit it into the GST portal.
The Central government of India will appoint 900/ out of this, and Rs. 900/- will go to the government of West Bengal.
Who needs to pay GST in India?
If you ask me, who needs to pay GST in India? The answer to your question is: anybody associated with the supply of goods and services must pay GST.. However, the specifications depend on the type of business, turnover and the nature of the transaction.
To make it simpler for you:
Since you know about different types of GST now, let me tell you the percentage you need to pay for different services under the types of GST.
| Category | Items | From (%) | To (%) |
|---|---|---|---|
| Daily Essentials | Butter, Ghee, Cheese & Dairy Spreads | 12 | 5 |
| Daily Essentials | Hair Oil, Shampoo, Toothpaste, Toilet Soap Bar, Tooth Brushes, Shaving Cream | 18 | 5 |
| Daily Essentials | Feeding Bottles, Napkins for Babies & Clinical Diapers | 12 | 5 |
| Daily Essentials | Sewing Machines & Parts | 12 | 5 |
| Daily Essentials | Pre-packaged Namkeens, Bhujia & Mixtures | 12 | 5 |
| Daily Essentials | Utensils | 12 | 5 |
| Uplifting Farmers & Agriculture | Specified 12 bio-pesticides and micro-nutrients | 12 | 5 |
| Uplifting Farmers & Agriculture | Drip Irrigation System & Sprinklers | 12 | 5 |
| Uplifting Farmers & Agriculture | Tractor Tires & Parts | 18 | 5 |
| Uplifting Farmers & Agriculture | Tractors | 12 | 5 |
| Uplifting Farmers & Agriculture | Agricultural, Horticultural or Forestry Machines (Soil Preparation, Cultivation, etc.) | 12 | 5 |
| Healthcare Sector | Individual Health & Life Insurance | 18 | Nil |
| Healthcare Sector | Thermometer | 18 | 5 |
| Healthcare Sector | Glucometer & Test Strips | 12 | 5 |
| Healthcare Sector | Corrective Spectacles | 12 | 5 |
| Healthcare Sector | Medical Grade Oxygen | 12 | 5 |
| Healthcare Sector | All Diagnostic Kits & Reagents | 12 | 5 |
| Healthcare Sector | 33 drugs and medicines, as it is listed in the press release | 12 | Nil |
| Healthcare Sector | Drugs and medicines such as Faricimab, Pertuzumab, Fluticasone Furoate + Umeclidinium + Vilanterol FF/UMEC/VI, Ocrelizumab, and Brentuximab Vedotin | 5 | 5 |
| Healthcare Sector | Agalsidase Beta, Imiglucerase and Eptacog alfa activated recombinant coagulation factor VIIa drugs | 12 | Nil |
| Automobiles | Motorcycles (≤350cc) | 28 | 18 |
| Automobiles | Diesel & Diesel Hybrid Cars (≤1500cc & ≤4000mm) | 28 | 18 |
| Automobiles | Motor Vehicles for the transport of goods | 28 | 18 |
| Automobiles | Petrol & Petrol Hybrid, LPG, CNG Cars (≤1200cc & ≤4000mm) | 28 | 18 |
| Automobiles | Three wheelers | 28 | 18 |
| Education | Maps, Charts & Globes | 12 | Nil |
| Education | Eraser | 5 | Nil |
| Education | Exercise Books & Notebooks | 12 | Nil |
| Education | Pencils, Sharpeners, Crayons & Pastels | 12 | Nil |
| Electronic Appliances | Monitors & Projectors | 28 | 18 |
| Electronic Appliances | Dish Washing Machines | 28 | 18 |
| Electronic Appliances | Air Conditioners | 28 | 18 |
| Electronic Appliances | Television (above 32") (INC. LED & LCD TVs) | 28 | 18 |
In terms of IGST, the table below is there for you to understand the IGST rates you need to pay:
| Type of Items | IGST Rates |
|---|---|
| Essential/Exempt Goods & Educational Services | 0% |
| Standard goods & services, consumer durables, etc. | 18% |
| Daily use essentials, packaged foods, medicines, etc. | 5% |
| Luxury goods or sin goods (such as high-end cars, aerated drinks) | 40% |
| CGST Rate | Applicable Items |
|---|---|
| 5% | The daily necessities like edible oils, sugar, coffee (except instant coffee) and domestic LPG. It also includes tea, apparel and clothing of up to Rs. 1000 per piece, electric vehicles, etc. |
| 0% | Essential goods and services such as unprocessed cereals, fresh and chilled meat and fish. This further includes the fresh fruits and vegetables, bread (if not served for consumption), most healthcare services, and so on. |
| 3% | Precious metals like gold and silver |
| 12% | Goods and services such as butter, ghee, fruit juices, almonds, and packaged coconut water, geometry boxes, footwear not more than Rs. 1000 per pair, and so on |
| 0.25% | Applicable to diamonds. Besides the precious and semi-precious stones |
| 18% | Goods such as toothpaste, ice cream, pasta, soaps, and chocolates. This further applies to computer monitors (not more than 32 inches), printers, most services, refrigerators, etc. |
| 28% | Goods which include luxury items such as cars, air conditioners, high-end motorcycles, cigarettes, and so on |
| Items and their types | SGST rates (as of 2025) |
|---|---|
| Processed food, packaged foods, mobiles, computers, etc. | 6% |
| Essential commodities of daily usage and educational services | 2.5% |
| Luxury goods (cars, consumer durables, sin goods) | 14% |
| Semi-luxury goods (ice cream, pasta, capital goods, etc.) | 9% |
Final Thoughts
To sum up our discussion, I would say that understanding the different types of GST in India is essential for anyone conducting business. It impacts the way taxes are applied to transactions. Whether you are a seller, a buyer or a business owner, knowing when to apply CGST, SGST, IGST or UTGST ensures you stay compliant with the law. This also helps you to avoid unnecessary penalties. If you need any assistance for GST registration, connect with Online Legal India.
FAQs
1. How can you check the applicability of types of GST in India?
If you want to check the applicability of the types of GST in India, you must determine the place of transaction. If it is intra-state and inter-state.
2. What types of GST are collected in India?
The types of GST collected in India are CGST, SGST, UTGST (if applicable) and IGST.
3. Is GST applicable to the goods and services of India?
Yes, GST is applicable to all goods and services in India. However, the types of GST depend on the place of transaction (inter-state, intra-state or union territory that does not have its own legislature).
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.
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