In India, the old sales tax, vat everything comes under GST.

Can anybody explain with an example, how to set a tax rate and rules to each product?

you need to create 2 types as CGST and SGST for within states and IGST for all over india. please go through below link for more details :

https://magecomp.com/blog/create-indian-gst-tax-rule-magento-2/

It's not possible to set Indian GST Tax Rules using Default Magento 2 Settings. The easiest method to setup GST would be using an Extension such as: https://meetanshi.com/magento-2-indian-gst.html

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