India GST codes and rates
India charges GST at 18%, with other rates of 40% and 5%. When you create a company in India, Nefin sets up 6 sales and 12 purchase codes, each tied to a box of the GSTR-3B. Every invoice and bill line carries one, so the return's totals add themselves up as you work. They fill the GSTR-3B - Outward supplies and the GSTR-3B - Inward supplies and ITC, ready to file every quarter.
GST codes from the GSTR-3B
Each code is the box or line it fills on the GSTR-3B, named in the authority’s own wording. Pick one on an invoice or bill line and the amount lands in that box.
| Code | What it covers | Rate |
|---|---|---|
| 3.1a-18 | Outward taxable supplies 18% (3.1(a))Default | 18% |
| 3.1a-5 | Outward taxable supplies 5% (3.1(a)) | 5% |
| 3.1a-40 | Outward taxable supplies 40% (3.1(a)) | 40% |
| 3.1b | Outward taxable supplies (zero rated) under LUT (3.1(b)) | 0% |
| 3.1c | Other outward supplies (Nil rated, exempted) (3.1(c)) | 0% |
| 3.1e | Non-GST outward supplies (3.1(e)) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| 4A5-18 | Inward supplies 18%, ITC (4(A)(5) All other ITC)Default | 18% |
| 4A5-5 | Inward supplies 5%, ITC (4(A)(5) All other ITC) | 5% |
| 4A5-40 | Inward supplies 40%, ITC (4(A)(5) All other ITC) | 40% |
| 4B1-18 | Blocked credit u/s 17(5) 18% (4(A)(5), reversed 4(B)(1)) | 18% |
| 4B1-5 | Blocked credit u/s 17(5) 5% (4(A)(5), reversed 4(B)(1)) | 5% |
| 4B1-40 | Blocked credit u/s 17(5) 40% (4(A)(5), reversed 4(B)(1)) | 40% |
| 3.1d-18 | Inward supplies liable to reverse charge 18% (3.1(d), 4(A)(3)) | 0% |
| 3.1d-5 | Inward supplies liable to reverse charge 5% (3.1(d), 4(A)(3)) | 0% |
| 4A2-18 | Import of services, reverse charge 18% (3.1(d), 4(A)(2)) | 0% |
| 4A1 | IGST paid on import of goods, amount = tax (4(A)(1)) | 0% |
| 5-EXEMPT | Inward from composition supplier, exempt, nil rated (5) | 0% |
| 5-NONGST | Non GST inward supply (5) | 0% |
India GST books
One row per invoice or bill, one column per return box. Nefin builds both books from the codes above.
Sales book
GSTR-3B - Outward supplies
3.1(a) Outward taxable supplies (other than zero rated, nil rated and exempted)
- [3.1a-5]Taxable value 5%
- [3.1a-18]Taxable value 18%
- [3.1a-40]Taxable value 40%
3.1 Other outward supplies
- [3.1b](b) Outward taxable supplies (zero rated)
- [3.1c](c) Other outward supplies (Nil rated, exempted)
- [3.1e](e) Non-GST outward supplies
Totals Nefin calculates
- [3.1a] 3.1(a) Total taxable valueSum of the net amounts in [3.1a-5] + [3.1a-18] + [3.1a-40]
- [3.1a-TAX] 3.1(a) Tax (Integrated + Central + State/UT)Sum of the tax charged in [3.1a-5] + [3.1a-18] + [3.1a-40]
Purchase book
GSTR-3B - Inward supplies and ITC
4(A)(5) All other ITC
- [4A5-5]Taxable value 5%
- [4A5-18]Taxable value 18%
- [4A5-40]Taxable value 40%
Blocked credit u/s 17(5)
- [4B1-5]Taxable value 5%
- [4B1-18]Taxable value 18%
- [4B1-40]Taxable value 40%
3.1(d) Inward supplies (liable to reverse charge)
- [3.1d-5]Domestic reverse charge 5%
- [3.1d-18]Domestic reverse charge 18%
- [4A2-18]Import of services 18%
4(A)(1) Import of goods
- [4A1]IGST paid on import of goods
5 Values of exempt, nil-rated and non-GST inward supplies
- [5-EXEMPT]From a supplier under composition scheme, Exempt and Nil rated supply
- [5-NONGST]Non GST supply
Totals Nefin calculates
- [3.1d] 3.1(d) Total taxable valueSum of the net amounts in [3.1d-5] + [3.1d-18] + [4A2-18]
- [RC-TAX5] Tax on reverse charge 5%Net amount × 5%, from [3.1d-5]
- [RC-TAX18] Tax on reverse charge 18%Net amount × 18%, from [3.1d-18]
- [IMPS-TAX18] Tax on import of services 18%Net amount × 18%, from [4A2-18]
- [4A1-ITC] (1) Import of goodsSum of the net amounts in [4A1]
- [4A5-OK] Tax on inward supplies with ITCSum of the tax charged in [4A5-5] + [4A5-18] + [4A5-40]
- [4A5-BLK] Tax on blocked-credit inward suppliesSum of the tax charged in [4B1-5] + [4B1-18] + [4B1-40]
- [3.1d-TAX] 3.1(d) Tax payable on reverse chargeTotal of [RC-TAX5] + [RC-TAX18] + [IMPS-TAX18]
- [4A2] (2) Import of servicesTotal of [IMPS-TAX18]
- [4A3] (3) Inward supplies liable to reverse charge (other than 1 & 2 above)Total of [RC-TAX5] + [RC-TAX18]
- [4A5] (5) All other ITCTotal of [4A5-OK] + [4A5-BLK]
- [4A] 4(A) ITC Available (whether in full or part)Total of [4A1-ITC] + [4A2] + [4A3] + [4A5]
- [4B1] (1) As per rules 38, 42 and 43 of CGST Rules and sub-section (5) of section 17Total of [4A5-BLK]
- [4C] 4(C) Net ITC Available (A) - (B)Total of [4A1-ITC] + [4A2] + [4A3] + [4A5-OK]
Source
These codes were transcribed from the tax authority's own form or instructions: FORM GSTR-3B, CGST Rules Part B forms (18.05.2021) + Notification 14/2022-Central Tax (05.07.2022), gstcouncil.gov.in/CGST-Rules; rates: 56th GST Council press release Sep 2025.
Frequently asked questions
What is the GST rate in India?
The standard rate is 18%. Other rates in use: 40% and 5%. Zero-rated, exempt and reverse-charge transactions use their own 0% codes.
Which GST codes does Nefin set up for a company in India?
6 sales codes and 12 purchase codes, each named after the GSTR-3B box it fills, for example 3.1a-18 (Outward taxable supplies 18% (3.1(a)), 18%), 3.1a-5 (Outward taxable supplies 5% (3.1(a)), 5%) and 3.1a-40 (Outward taxable supplies 40% (3.1(a)), 40%).
How often is the GSTR-3B filed?
Nefin defaults to quarterly filing, the usual period for a small or medium registered business in India. Your tax authority may assign you a different one.
Are these India GST codes official?
Yes. They were transcribed from the tax authority's own form or filling instructions (FORM GSTR-3B, CGST Rules Part B forms (18.05.2021) + Notification 14/2022-Central Tax (05.07.2022), gstcouncil.gov.in/CGST-Rules; rates: 56th GST Council press release Sep 2025).
Does Nefin produce the India GST books?
Yes. The GSTR-3B - Outward supplies lists every invoice and the GSTR-3B - Inward supplies and ITC every bill, one row per document with a column for each return box, plus the totals the return asks for.