Revised GST Slabs in India
GST is the most significant tax reform in the country. It unified the taxation structure and replaced the multiple indirect taxes of the previous regime. The GST Council meets regularly to review and revise GST rates on various goods and services.
In the 56th GST Council meeting held on September 3, 2025, a major overhaul was approved. The Council simplified the structure by reducing it to two main slabs, 5% and 18% along with a new 40% slab for luxury and sin goods. This move aims to bring clarity, reduce complexity, and ease compliance for businesses and consumers.
The finance minister, Nirmala Sitharaman, along with the panel of ministers, also emphasised merging overlapping slabs and ensuring affordability for essential items
GST Benefit Missed? Consumers Can Complain Through Multiple Channels
CBIC advises people that if they have not received the benefit of the new GST rate, they can raise a complaint through multiple channels, such as calling the National Consumer Helpline (NCH) on the toll-free number 1915, sending a WhatsApp message to 8800001915, or submitting a complaint via the INGRAM portal.
56th GST Council Meeting Update
In the 56th GST Council meeting, the central government announced the removal of 12% and 28% GST rates and shifted several goods to the 5% and 18% slabs to provide relief to consumers. Read Press Release
Next-gen GST Reforms
Effective from September 22, 2025, the new GST structure will make several essential items cheaper for households and rationalise rates on automobiles, appliances, and other consumer goods. Under the revised structure:
- 5% slab will cover essentials like food products, medicines, milk-based items, EVs, and insurance.
- 18% slab will apply to standard goods like electronics, cement, vehicles, and apparel.
- 40% slab will be imposed on luxury and sin goods such as aerated drinks, and premium cars.
Generate Unlimited GST Invoices with Slab Rates
GST Means Goods and Services Tax. It has 3 Different Tax Categories
- CGST –Central GST
- SGST –State GST
- IGST –Integrated GST
The government recently wanted to change the GST rates and wanted to keep them as per the original rates but the changes in customer preference and other factors led to different decisions.
Therefore, after the final revaluation of the commodities of the basic consumers, it was found that most of the products must be in the necessities category instead of the luxury category.
Nil GST Rate on Goods
| Ultra-High Temperature (UHT) Milk, Chena or paneer, pre-packaged and labelled, Pizza Bread, Khakhra, chapati or roti, Paratha, parotta and other Indian breads by any name called, Bidi wrapper leaves (tendu), Indian katha, Erasers and Maps, Exercise book, graph book and Notebooks, Pencils and Pencil Sharpeners, Millet Flour (if sold in other than pre-packaged and labelled form), Milk, Butter Milk, Curd, Cereals, Natural Honey, Flour, Besan, Puffed rice, Papad, Bread, Prasad, Salt, Bindi. Sindoor, Contraceptives, Fresh Fruits and Vegetables, Firewood, Bangles (non-precious metals), Agricultural Implements, Stamps, Judicial Papers, Printed Books, Newspapers, Bangles, Human Blood, Guar meal, Hop cone (other than grounded, powdered or in pellet form), Certain dried vegetables such as sweet potatoes, maniac, Unworked coconut shell, Khandsari sugar, de-oiled rice bran, hearing aid accessories, Fortified milk, Sanitary pads, Raw material used in brooms, Commemorative coins circulated by the RBI or government, Saal leaves, Deities made of stone, marbles or wood, Vegetables in the state of uncooked or cooked by steaming or boiling in water while being frozen, branded and are in a unit container, Vegetable briefly preserved under the mixtures of sulfur dioxide gas, in brine, in sulfur water or in other preservative solutions but unsuitable in that state for immediate consumption, Plates and cups made of flowers, leaves and bark, Dried Tamarind, etc. |
0.25% and 1.50% GST Rate on Goods
| 0.25% | Semi-precious Stones-cut & Polished |
| 1.50% | Diamond Job work, Diamond |
5% GST Rate on Goods
Common Items
| Popcorn with Salt and Spices, Molasses,Millet Flour (pre-packaged and labelled), Uncooked/Unfried Snacks, Pre-Packed Curd, Lassi, Buttermilk, Branded Paneer, Frozen Vegetables, Processed Spices | Pizza Bread, Rusk, Sabudana, Soyabean, Groundnut, Sunflower Seeds | Vegetable Fats & Oils, Beet Sugar, Cane Sugar, Cocoa Beans, Shells, Paste Bakery Mixes, Doughs Vermicelli Poha, Bran, Fried Gram, Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, Flour of potatoes in branded containers, Chutney powder, Tamarind kernel powder, Desiccated coconut | Handbags and shopping bags of cotton and jute |
| Tooth powder | Candles | Feeding Bottles and Nipples | Hand bags and shopping bags of cotton and jute |
| Tableware and Kitchenware of wood | Umbrellas | Sewing needles | Kerosene burners, stoves and wood burning stoves of iron or steel |
| Brass Kerosene Pressure Stove | Bicycles and other cycles | Sewing machines | Parts and accessories of bicycles |
| Bamboo Furniture | Talcum and Face powder | Hair oil and Shampoo, | Dental floss, Toothpaste and Tooth brushes |
| Shaving Cream and Lotion | Toilet Soap | Cement, Jute Particle Board, Rice Husk Board, Glass-fibre Reinforced Gypsum Board , Sisal-fibre Boards,Bagasse Board | Split Poles; Piles, Pickets and Stakes of Wood, Pointed but Not Sawn Lengthwise; Wooden Sticks, Roughly Trimmed but Not Turned, Bent or Otherwise Worked, Suitable for the Manufacture of Walking-Sticks, Umbrellas, Tool Handles |
| Wood Flour, Bamboo flooring, | Dry fruits in packaged form | Fountain pen ink, ball pen ink | Hotels (Room Tariff of Rs.7501 or above) |
Other Items
| Condensed milk | Butter and other fats (i.e. ghee, butter oil, etc.) and oils derived from milk; dairy spreads | Cheese | Brazil nuts, dried, whether or not Shelled or Peeled | Other nuts, dried, whether or not shelled or peeled, such as Almonds, Hazelnuts or filberts (Corylus spp.), Chestnuts (Castanea spp.), Pistachos, Macadamia nuts, Kola nuts (Cola spp.), Pine nuts [other than dried areca nuts] |
| Dates (soft or hard), figs, pineapples, avocados, guavas, mangoes (other than mangoes sliced, dried) and mangosteens, dried | Citrus fruit, such as Oranges, Mandarins (including tangerines and satsumas); clementines, wilkings and similar citrus hybrids, Grapefruit, including pomelos, Lemons (Citrus limon, Citrus limonum) and limes (Citrus aurantifolia, Citrus latifolia), dried | Fruit, dried, other than that of headings 0801 to 0806; mixtures of nuts or dried fruits of Chapter 8 [other than dried tamarind] | Starches; inulin | Lard stearin, lard oil, oleo stearin, oleo-oil and tallow oil, not emulsified or mixed or otherwise prepared |
| Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified | Wool grease and fatty substances derived therefrom (including lanolin) | Other animal fats and oils and their fractions, whether or not refined, but not chemically modified | Animal or microbial fats and animal or microbial oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared | Edible mixtures or preparations of animal fats or microbial fats or animal oils or microbial oils or of fractions of different animal fats or microbial fats or animal oils or microbial oils of this Chapter, other than edible fats or oils or their fractions of heading 1516 |
| Crustaceans, molluscs and other aquatic invertebrates prepared or preserved | All goods, including refined sugar containing added flavouring or colouring matter, sugar cubes (other than those which attract 5% or nil GST) | Sugar boiled confectionery | Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared | Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid |
| Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, obtained by cooking, whether or not containing added sugar or other sweetening matter | Fruits And Vegetable Juices | Tender coconut water, pre-packaged and labelled | Soya Bari | Namkeens, bhujia, mixture, chabena and similar edible preparations ready for consumption form (other than roasted gram), pre-packaged and labelled |
| Diabetic foods | Soya milk drinks | Fruit Pulp or Fruit Juice Based Drinks | Beverages Containing Milk | Beverages of Fruit Drink |
| Carbonated Beverages with Fruit Juice | Malt, Whether or Not Roasted | Vegetable Saps and Extracts | Margarine Goods | Linoxyn Goods |
| Glycerol, Crude; Glycerol Waters and Glycerol Lyes | Vegetable Waxes | Mishri, Batasha, Bura, Sakar, Khadi Sakar, Harda, Sakariya, Gatta, Kuliya, Elaichidan, Lukumdan, Chikkis Like Puffed Rice Chikki, Peanut Chikki, Sesame Chikki, Til Chikki, Til Patti, Til Revdi, Sugar Makhana, Groundnut Sweets, Gajak and Sugar Boiled Confectionery | Cocoa Butter, Cocoa powder, Fat and Oil, Chocolates and other food Preparations Containing Cocoa | Corn Flakes, Bulgar Wheat, Prepared Foods Obtained from Cereal Flakes |
| Pastry, cakes, Biscuits and Other Bakers | Ice cream and other edible ice | Plant-based milk drinks | Fixed Speed Diesel Engines (15HP) | Hand Pumps |
| Nozzles for Drip or Nozzles for Sprinklers | Composting Machines | Tractors (More Than 1800 cc) | Self-Loading or Self-Unloading Trailers | Hand Carts, Rickshaws |
| Sulphuric Acid, Nitric Acid, Ammonia, and Gibberellic Acid | Tractors Tyre, Tube and Hydraulic Pumps | Agricultural Diesel Engine of cylinder capacity exceeding 250 cc for Tractor | Fender, Hood, wrapper, Grill, Side Panel, Extension Plates, Fuel Tank and Other parts for the tractor | Solar Cookers, Solar Water Heater and System |
| Synthetic or Artificial Filament Yarns | Yarn of Manmade Staple Fibres | Wadding of textile materials and articles | Metallised yarn and Gimped yarn, | Textile caps, Hats |
| Thermometers for medical | Instruments and apparatus for medical | Mathematical boxes, geometry boxes and colour boxes | Footwear of sale value not exceeding Rs.2500 per pair | Gloves, Toys like (Tricycles, Scooters, Pedal Cars) and Playing cards, chess board, carom board and other board games, like ludo, etc |
18% GST Rate on Goods
| Packaged Foods | Caramelised Popcorn (with sugar), Cornflakes, Pastries, Cakes, Sauces, Soups, Ice Cream, Instant Food Mixes, Preserved Vegetables, Waffles, Wafers, Chocolates, Chewing / Bubble Gum, Sugar-boiled confectionery, Tea concentrates, Sharbets, Mineral / Aerated water (without sugar), Miscellaneous processed foods, malt extract, cocoa butter, fat, oil powders |
| Household & Kitchenware | Utensils: Knives, Spoons, Forks, Ladles, Skimmers, Cake Servers, Paper Knives & Blades, Household plastic products, hot water bottles, vacuum flasks, lighters, Detergents, Washing & Cleaning preparations |
| Electrical & Electronics | LED Lights, Fixtures, LED Lamps, Speakers, Cameras, Smartphones, Digital Cameras, Video Recorders, TVs & Monitors (up to 32 inch), TV (up to 68 cm), Primary cells & Batteries (except lithium-ion), Power banks with lithium-ion batteries, Electrical plugs, switches, sockets, fuses, relays, connectors, Electrical boards, panels, consoles, cabinets, Fans, Pumps, Compressors, Water coolers, Storage water heaters, Washing machines, Refrigerators, Electric irons, Hair dryers, Shavers, Mixers, Vacuum cleaners, Ice cream freezers, Printed Circuits |
| Industrial & Construction | Tetra Pak (carton packaging), Tar, Petroleum jelly, Paraffin wax, Bitumen, Petroleum coke, Disinfectants, Insecticides, Fungicides, Marble, Granite slabs & tiles, Ceramic tiles, Wooden flooring, Bamboo flooring, Cables, Conductors, Electrical insulators, Sanitaryware of ceramic/plastic/steel (wash basins, toilets, sinks, seats), Articles of cement, plaster, stone, mica, asphalt, slate, Plywood, particle boards, fibre boards, wood articles, Wallpaper & wall coverings, Glass, Mirrors, Glassware, Paints, Varnishes, Putty, Greaseproof papers, Glassine papers |
| Vehicles & Machinery | Tractor parts, Railway parts, Locomotives, Lifting & handling equipment (forklifts, cranes, loaders, excavators, bulldozers, road rollers), Cooling towers, Pressure vessels, Reactors, Escalators, Trailers, Work trucks, Special purpose vehicles, Concrete mixer |
| Furniture & Lifestyle | Furniture, Mattress, Bedding, Wooden frames, Travel goods: Trunks, Suitcases, Vanity cases, Handbags, Briefcases, Watches, Wrist watches, Straps, Clock parts, Artificial flowers, foliage & fruits, Physical exercise & gym equipment, Musical instruments & parts, Festival & carnival equipment (swings, roundabouts, shooting galleries), Footwear of sale value exceeding Rs.2500 per pair |
| Metals & Hardware | Steel products, Copper, Nickel, Aluminium, Lead, Zinc, Tin bars/rods/wires/tubes/pipes/sheets, Screws, Nuts, Bolts (Copper & Nickel), Padlocks, Locks, Gears, Gearboxes, Ball/roller screws, Gaskets, Pulleys, Transmission shafts, Cranks |
| Transport Sector | Auto parts & accessories, Motorcycles of engine capacity (not exceeding 350cc), Rowing boats and canoes, Road tractors for semi-trailers of engine capacity more than 1800 cc, Motor vehicles for the transport of ten or more persons, Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm, Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm, Ambulances, Three Vehicles, Motor vehicles Petrol Diesel (not exceeding 1200cc and of length not exceeding 4000 mm), Motor vehicles (engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm), Rowing boats and canoes, Seats of a kind used for motor vehicles |
40% GST Rate
| Other Non-alcoholic Beverages | Aircraft for personal use |
| Caffeinated Beverages with Fruti Drink and Fruit Juice | Yacht and other vessels for pleasure or sports |
| All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured | Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars, other than those mentioned at Sr. Nos. 313, 314, 315, 316,317 and 319 of above table [wherein 28% to 18% is mentioned ] |
| Motor vehicles with both spark-ignition engine capacity exceeding 1200cc or a length exceeding 4000 mm | Motor vehicles with both spark-ignition [diesel-or semi diesel] engine capacity exceeding 1500cc or a length exceeding 4000 mm |
| Motorcycles of engine capacity exceeding 350 cc | Revolvers and pistols |
GST on Loans and Advances
Before GST, a Service Tax was levied on the allotment of loans at a rate of 15%. This has been replaced by an 18% GST on services. While some initially believed this would increase the effective loan amount or EMIs, it is important to clarify that GST is not levied on the repayment of the loan principal or the interest amount.
GST is applicable only on specific charges related to the loan, such as processing fees and prepayment charges. Since the major components of a loan—the principal and interest—are exempt from GST, the overall impact of the tax on loan repayment is minimal. The GST rate on these charges remains at 18%.
GST on Cars
The GST tax structure for cars has been simplified and rationalised.
- Small Passenger Cars & Motorcycles (up to 350cc) now attract a GST rate of 18%, a significant reduction from the previous 28% plus cess.
- Large and Luxury Vehicles now fall under a new 40% de-merit rate.
- Electric Vehicles (EVs) continue to benefit from a subsidized 5% GST with no cess, promoting sustainable transportation.
This new structure is aimed at making entry-level vehicles more affordable for a wider population.
GST on Gold in India
The information on GST for gold remains accurate. Gold jewelry and items are subject to a 3% GST on the value of the gold. Additionally, a 5% GST is levied on the making charges for jewelry. Jewellers can claim an input tax credit (ITC) on these charges, ensuring the final GST burden on the customer remains primarily on the value of the gold itself.
GST On Real Estate
The GST rules for real estate have also been updated to make housing more affordable.
- GST is levied only on the purchase of an under-construction property. The applicable tax rates are now 5% for non-affordable housing and 1% for affordable housing.
- Ready-to-move-in properties that have received a Completion Certificate are not liable to attract any GST.
- The tax on building materials has also been rationalized. For example, the GST on cement has been reduced from 28% to 18%, and on materials like sand, it is 5%.
Products Introduced Under GST
The government is actively working to bring more products under the GST system to simplify taxation and correct inverted duty structures. While petroleum products like petrol and diesel, as well as land and electricity, are still anticipated to be included, some key products have already been added or had their rates revised:
- The GST on coal has been increased to 18% to correct the inverted duty structure.
- A range of consumer durables, including TVs and ACs, have been moved from the 28% slab to the new standard 18% rate.
GST Impact on the Indian Economy
The recent GST reforms, often called “Next Generation GST,” are designed to further streamline the economy and simplify tax compliance. Key impacts include:
- Simplified Tax Structure: The previous multi-tier system has been replaced with a more straightforward two-rate structure (5% and 18%) and a special 40% de-merit rate for luxury goods.
- Reduced Prices on Essentials: Many everyday items, including soaps, shampoos, and certain packaged food products, have been moved to the lower 5% tax slab, providing direct relief to consumers.
- Increased Affordability: The GST cut on items like two-wheelers, small cars, and essential household goods aims to boost consumption and provide more disposable income to the public.
- Correction of Inverted Duty Structure: The Council has successfully addressed long-standing issues in sectors like textiles and coal, ensuring a more efficient tax flow for businesses.
GST Rates on Services
The GST on services has been completely revised to align with the new three-slab structure. Many services have seen a reduction in their tax rates, making them more affordable.
- NIL GST: Individual life and health insurance policies are now completely exempt.
- 5% Tax Slab: Services like food and drinks at non-AC restaurants, hotel accommodation up to ₹7,500 per day, and personal wellness services such as gyms and salons have been moved to this lower rate.
- 18% Tax Slab: This is the new standard rate, covering most professional services, works contracts, and transport.
- 40% Tax Slab: A new de-merit rate is now applied to luxury services.
Remember, for managing your GST compliance, software like Gen GST is an effective tool to handle these updated rates and regulations.
We are running restaurant GST composition. Can reverse tax pay on exempted item purchases like milk, vegetables?
Please clarify your question.
Sir, what rate of tax on branded & unbranded Namkeen?
5%
Is there is any difference if sweetcorn sale with the brand name registered or unregistered???
WHAT IS COMPOSITION SCHEME IN GST ACT & CLOSING STOCK TAX RATE?
GST TAX RATE ON RUBBER TYRES AND TUBE & TRACTOR TYRE
The composition scheme under GST is a regime under which the taxpayer is not required to issue the taxable invoice and charge tax as per the slab rates. instead, they have to pay tax @1% of the total turnover without availing input tax credit on the purchases. also, they have to file GSTR4 on a quarterly basis. They need not maintain regular books of accounts.
the closing stock will be taxed at the rate applicable on the particular item.
18% rate is applicable
Please tell me HSN Code Rate of 8511, 8536,8482,8483
8511-28%
8536-28%
8482-18%
8483—28%
Please let me know the revised GST rate for Car polishes – HSN code 3405
28%