Goods and Services Tax (GST) rates in India are critical to all sectors of the economy. Every time the GST Council meets, Indian businesses and consumers alike are waiting for the next round of GST rate modifications. India’s GST framework is experiencing a historic shift, with the 56th GST Council meeting announcing GST 2.0 – next-generation reforms that streamline tax slabs to 5%, 18%, and 40%. These reforms, which take effect on September 22, 2025, aim to ease compliance, stimulate consumption, and fuel economic growth.
Latest Updates
1. The most anticipated 56th GST Council meeting took place on September 3, 2025. The council simplified the GST rate structure, which was formerly divided into four slabs (5%, 12%, 18%, and 28%).
Standard rate: 18% – applies to most products and services.
Merit rate: 5% for critical commodities and priority sectors.
Demerit rate: 40%; selective application to sin goods and luxury purchases.
2. Individual health and life insurance premiums are no longer subject to GST.
3. GST on dairy products, 33 life-saving medications, and educational necessities has been reduced to zero percent.
4. GST on daily necessities, agricultural items, and health care equipment has been reduced to 5%.
5. GST on electronic gadgets, compact cars, and motorcycles (≤350cc) has been reduced to 18%.
6. The GST rate for sin items such as pan masala, aerated waters, caffeinated beverages, and carbonated beverages containing fruit drinks or fruit juice has been hiked to 40%.
7. With the exception of tobacco items, all GST rate increases will take effect on September 22nd, 2025. T
This GST rates in India 2025 guide delves into GST rate structures, recent modifications, and item-specific tax lists to keep you informed and compliant.
GST rate reductions-
|
Category |
Items |
From (%) |
To (%) |
|
Daily Essentials |
Hair Oil, Shampoo, Toothpaste, Toilet Soap Bar, Tooth Brushes, Shaving Cream |
18 |
5 |
|
Butter, Ghee, Cheese & Dairy Spreads |
12 |
5 |
|
|
Pre-packaged Namkeens, Bhujia & Mixtures |
12 |
5 |
|
|
Utensils |
12 |
5 |
|
|
Feeding Bottles, Napkins for Babies & Clinical Diapers |
12 |
5 |
|
|
Sewing Machines & Parts |
12 |
5 |
|
|
Uplifting Farmers & Agriculture |
Tractor Tyres & Parts |
18 |
5 |
|
Tractors |
12 |
5 |
|
|
Specified 12 bio-pesticides and micro-nutrients |
12 |
5 |
|
|
Drip Irrigation System & Sprinklers |
12 |
5 |
|
|
Agricultural, Horticultural or Forestry Machines (Soil Preparation, Cultivation, etc.) |
12 |
5 |
|
|
Healthcare Sector |
Individual Health & Life Insurance |
18 |
Nil |
|
Thermometer |
18 |
5 |
|
|
Medical Grade Oxygen |
12 |
5 |
|
|
All Diagnostic Kits & Reagents |
12 |
5 |
|
|
Glucometer & Test Strips |
12 |
5 |
|
|
Corrective Spectacles |
12 |
5 |
|
|
33 drugs and medicines, listed in the press release |
12 |
Nil |
|
|
Agalsidase Beta, Imiglucerase and Eptacog alfa activated recombinant coagulation factor VIIa drugs |
5 |
Nil |
|
|
Drugs and medicines such as Faricimab, Pertuzumab, Fluticasone Furoate + Umeclidinium + Vilanterol FF/UMEC/VI, Ocrelizumab, and Brentuximab Vedotin |
12 |
5 |
|
|
Automobiles |
Petrol & Petrol Hybrid, LPG, CNG Cars (≤1200cc & ≤4000mm) |
28 |
18 |
|
Diesel & Diesel Hybrid Cars (≤1500cc & ≤4000mm) |
28 |
18 |
|
|
Three wheelers |
28 |
18 |
|
|
Motorcycles (≤350cc) |
28 |
18 |
|
|
Motor Vehicles for the transport of goods |
28 |
18 |
|
|
Education |
Maps, Charts & Globes |
12 |
Nil |
|
Pencils, Sharpeners, Crayons & Pastels |
12 |
Nil |
|
|
Exercise Books & Notebooks |
12 |
Nil |
|
|
Eraser |
5 |
Nil |
|
|
Electronic Appliances |
Air Conditioners |
28 |
18 |
|
Television (above 32″) (inc. LED & LCD TVs) |
28 |
18 |
|
|
Monitors & Projectors |
28 |
18 |
|
|
Dish Washing Machines |
28 |
18 |
GST rate increases-
|
Category |
Item description |
From (%) |
To (%) |
|
Mining |
Coal, lignite, peat |
5 |
18 |
|
Sin goods |
tobacco/ pan masala* |
28 |
40 |
|
Aerated waters |
28 |
40 |
|
|
Caffeinated beverages |
28 |
40 |
|
|
Carbonated beverages of fruit drinks / with fruit juice |
28 |
40 |
|
|
Other non‑alcoholic beverages |
18 |
40 |
|
|
Motor cars and larger hybrids (beyond small‑car thresholds) |
28 |
40 |
|
|
Motorcycles exceeding 350cc |
28 |
40 |
|
|
Aircraft for personal use |
28 |
40 |
|
|
Yachts and vessels for pleasure/sports |
28 |
40 |
|
|
Smoking pipes and cigarette/cigar holders |
28 |
40 |
|
|
Revolvers & pistols |
28 |
40 |
|
|
Admission to casinos, race clubs, and sporting events like IPL |
28% with ITC |
40% with ITC |
|
|
Licensing of bookmakers by race clubs |
28% with ITC |
40% with ITC |
|
|
Specified actionable claims (betting, casinos, gambling, horse racing, lottery, online money gaming) |
28% with ITC |
40% with ITC |
|
|
Leasing/rental without operator of goods attracting 40% GST |
28% with ITC |
40% with ITC |
|
|
Paper sector |
Dissolving‑grade chemical wood pulp |
12 |
18 |
|
Various papers/paperboards, other than exercise‑book paper |
12 |
18 |
|
|
Textiles |
Apparel/Made‑ups > Rs 2,500 per piece |
12 |
18 |
|
Quilted/cotton quilts and quilted products more than Rs.2,500 per piece |
12 |
18 |
* To take effect at a later date (not on September 22, 2025) by a notification, once the loan and interest obligations under the compensation cess are discharged.
List of Nil Rated and Exempt Items
| Sector | Description of Goods and Services | Old Rate | New Rate |
| Education | Erasers | 5% | Nil |
| Printed maps, hydrographic charts, atlases, globes | 12% | Nil | |
| Pencil sharpeners | |||
| Writing instruments (pencils, crayons, pastels, drawing charcoals, tailor’s chalk) | |||
| Notebooks (exercise, graph, laboratory) | |||
| Food | UHT milk, pre-packaged paneer, pizza bread, khakhra, chapathi, roti | 5% | Nil |
| Paratha, parotta, and other Indian breads | 18% | Nil | |
| Health | Specific recombinant therapeutic drugs (Agalsidase Beta, Imiglucerase, Eptacog alfa) | 5% | Nil |
| Advanced biotechnological medicines (Onasemnogene, Mepolizumab, etc.) | 12% | Nil | |
| Life and Health Insurance | All individual health and life insurance policies and reinsurance | 18% with ITC | Exempt |
| Other Proposals | Technical documentation for goods exempted under Customs Notification No. 19/2019 | IGST 18% | Nil |
| Natural cut and polished diamonds up to 1/4 carats (imported under Diamond Imprest Authorization) | |||
| Works of art and antiques | |||
| Flight motion simulator and parts | |||
| Target motion simulator and parts | |||
| Parts and sub-assemblies of HACFS | |||
| Low noise amplifiers and vent guide assemblies for MRSAM system | |||
| Parts and sub-assemblies of IADWS | |||
| Military transport aircraft (C-130, C-295MW) | |||
| Deep submergence rescue vessels | |||
| Unmanned underwater vessels/platforms | |||
| Ejection seats for fighter aircrafts | |||
| High-performance batteries for drones and special equipment | |||
| Communication devices including software-defined radios and accessories | |||
| Air diving, rebreather sets, diving systems, components, and accessories | |||
| Sonobuoys for naval air assets | |||
| Ship-launched missiles | |||
| Rockets with caliber over 100mm | |||
| RPA (Remote Piloted Aircraft) for military use | |||
| Parts, sub-assemblies, spares, accessories, tools, testing equipment, and literature for various military goods except specified exceptions | |||
| Paper | Uncoated paper and paperboard for exercise, graph, laboratory notebooks | 12% | Nil |
