Gst New Rate List In India Latest Slab List You Must Know

Goods and Services Tax, otherwise called GST, is a form of indirect tax that is imposed on various goods and services in India. This GST has replaced many indirect taxes in India, such as excise duty, VAT, service tax, and so on. This is a comprehensive, multi-stage, destination-based tax that is levied on the individual or entity for every value addition.   

Goods and Services Tax (GST) rates are significant for every segment of the economy. Whenever the Government of India makes substantial changes to GST, the entire business world and the commoner keep a close eye on the next set of GST changes. At the 56th GST council meeting, the next generation simplified the GST tax slabs to 5%, 18%, and 40%. The Government has implemented these changes to increase the consumption of essential products and boost economic growth.  

GST: Key Takeaways  

The following is the list of key pointers of GST reforms for the year 2025.  

• GST has been simplified into a three-slab structure of 5%,18%, and 40%.  

• The GST Reforms of 2025 have reduced the GST from 5% to nil for essential household items, thereby increasing affordability.  

• Many life-saving medicines have seen a reduction in GST from 12% to 5% or, in some cases, to nil, making quality healthcare more affordable for the commoner.  

• Two-wheelers, small cars, TVs, and ACs saw a significant demand reduction, from a major 28% to 18%, which brings a sigh of relief to the middle-class sector.  

• Daily-use items, such as toothpaste, umbrellas, pressure cookers, sewing machines, small washing machines, and bicycles, may be moved to the 5% slab.  

• Farm machinery and irrigation equipment have decreased from 12% to 5% which reduces the agricultural costs.  

• Tobacco, pan, gutkha, soft drinks, and various luxury goods are taxed at a whopping 40%  

The above-mentioned GST changes will be made effective from 22nd September 2025.  

An Overview of GST Rates  

GST rates are the percentage of tax that is levied on the sale of goods and services in India. Therefore, the GST rate exists in the form of the CGST, SGST, and IGST acts.  This literally means that all businesses registered under GST must raise their invoice for the goods and services they offer along with GST. The GST amount is derived as a percentage of the taxable supply value. Some products and services also attract an additional cess to generate revenue for specific needs, like compensation to the states. Overall, GST is aimed at balancing the revenue generation of the Government, imparting affordability to consumers, and promoting a transparent tax structure.  

GST Rate Changes from the Recent GST Council Meeting  

In the recently concluded GST Council Meeting, a most comprehensive GST rate has been implemented. This paves the way to imparting financial strategies, cash flows, and various competitive positioning.  The GST reform, announced and set to be implemented on 22nd September, aims to simplify tax rates, making essential items more affordable for the commoner and making tax compliance easier.   

Things Getting Affordable and Expensive  

The GST Reforms of 2025 have led to significant changes in daily household items and various consumer durable products. The Government has made a proactive step by hiking the GST rate for harmful health products to prioritize the well-being of the country's youth population. The following table provides a detailed breakdown of what becomes affordable and what becomes expensive under the GST reforms 2025.   

New GST Rates and Structures  

The GST system of India will undergo a breakthrough change on September 22nd, 2025. This aligns with the changes made to the GST law by the government recently.   

The previous GST slab rates of (5%, 12%, 18%, 28%) have been completely revamped and given a more streamlined outlook with the three most core rates (5%, 12%, and 40%). This reform aims to make the essential goods within the reach of the commoner.   

Under this new GST regime:  

• A merit rate of 5% is applied to a broad category of commonly used household items, such as toothpaste, toothbrushes, soaps, and various essential services.   

• A standardized rate of 18% is levied on various consumer durable products and compact cars. These products were levied a higher rate earlier.  

• A new 40% tax is levied on luxury and harmful health products, luxury cars, private aircraft, and yachts, replacing the earlier 28% tax. 

Items with 0% GST Rate 

Product/Service	Previous GST Rate	Revised GST Rate
Individual Life and Health Insurance Policies	18%	0%
Maps, Charts Globes	12%	0%
Stationery Items	5% or 12%	0%
Paneer and Bread	12%	0%
Unbranded Milk, Eggs, Curd, Lassi	0%	0%
Unpacked food grains, atta, maida, besan, fresh vegetables, and fruits	0%	0%
Educational and health-care services	0%	0%
Certain life-saving cancer medications	5% or 12%	0%

Items with 5% GST Rate 

Products/Services	Previous GST Rate	Revised GST Rate
Hair Oil, Shampoo, Soap, Toothpaste	18%	5%
Milk and Milk products	12%	5%
Utensils, Bicycles, and Kitchenware	12% or 18%	5%
Packaged Food Items	12% or 18%	5%
Services at salons, gyms, and yoga centres	12% or 18%	5%
Fertilizers and Agricultural Machinery	12% or 18%	5%

Items with 18% GST Rate 

Products/Services	Previous GST Rate	Revised GST Rate
Consumer Durables	28%	18%
Small Cars	28%	18%
Motor cycles under 350cc	28%	18%
Commercial vehicles	28%	18%
Autoparts	28%	18%
Cements	28%	18%
Printers and Batteries	18%	18%
Capital Goods	18%	18%

Items with 40% GST Rate 

Products/Services	Previous GST Rate	Revised GST Rate
Luxury and Premium Cars	28% + additional cess of 22%	40%
Motobikes Greater than 350cc	28% + additional cess of 3%	40%
Personal Aircrafts and Yachts	28% + additional cess	40%
Aerated Drinks and Carbonated Beverages	28% + additional cess	40%
Revolvers and Pistols	28% + additional cess	40%
Betting and Online Games	28% + additional cess	40%

 

List of Items Taxed at 3% :  

Imitation jewellery, items made or coated with precious metals, natural or cultured pearls, worked diamonds not mounted on a set, precious or semi-precious stones, silver, gold, scrap items of precious metals.  

List of Items Taxed at 0.25%:  

The special rate of 0.25% applies to non-industrial grade diamonds, unprocessed precious or semi-precious stones, and synthetic or reconstructed precious or semi-precious stones.  

Impact of GST Reforms in 2025  

The proposed GST Reforms of 2025 are likely to reform more than just rate cuts but also make a transformative economic impact. By addressing these tax structures, these reforms aim to make working capital available to businesses, enhance manufacturing competitiveness, and align with the vision of Atmanirbhar Bharat.  

With simplified compliance, reduced tax rates, and operational costs, MSMEs are given a big boost by the Government. These measures are expected to encourage the formalization of the unorganized sectors and widen the taxpayer base, thus strengthening India’s economic growth.  

On the consumer sector side, the Government has made a welcoming move by reducing GST on essential daily food products, packaged items, and various consumer durable products. This increases the purchasing power of the middle-class sector.   

Conclusion  

At the end of it, the GST reforms of 2025 are on the verge of a significant transformation. The Government aims to rationalize tax rates on essential goods and provide strong support to MSMEs. Both businesses and consumers can look forward to a tax framework that is efficient, transparent, and growth-driven.  

FAQs on GST New Rate List in India 2025 

1. What are the new GST slabs introduced in 2025?  

The GST has seen a total reformation by converting the entire slab ranges into three main slabs. They are 5%, 18% and a higher 40% for unhealthy and luxury items.  

2. When do the new GST rates become effective?  

The new GST rates will take effect from 22nd September 2025.  

3. What are some items that come under the 0% or nil GST rates?  

Some of the items that come under the 0% rate include daily essential items, agricultural products, two-wheelers less than 350cc, air conditioners, televisions, dishwashers, and various personal self-care products.  

4. Name some items that have become more expensive under the new GST structure?  

Some of the items that have become more expensive under the new GST structure include tobacco, pan, gutkha, soft drinks, carbonated beverages, private aircraft, and yachts, which have fallen under the 40% slab structure.  

5. How will these changes affect the consumers?  

Consumers will experience a lower price on everyday dairy products. Prices of essential goods are likely to decrease. However, luxury products may have a higher cost.   

6. Why did the Government make the new GST reform?  

The new GST reform is aimed at simplifying the indirect tax system of India. The slab structure is divided into three distinct segments to enhance economic growth and reduce compliance burdens on MSMEs.  

7. Is the new GST reform profitable for the commoner?  

The new GST reform system benefits the commoner by reducing rates on essential dairy & food products, consumer durables, and various daily-use items.  

 

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Given that this type of data may change over time, we cannot guarantee the accuracy of the information supplied or included within it. It is anticipated that the user will confirm with the relevant source before making any choices or taking any actions.