The Government of India has decreased GST rates. The 56th meeting of the GST Council was held in New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The changes in GST rates on services will be implemented with effect from 22nd September 2025. The GST Council has approved a two-tier rate structure of 5 and 18 per cent. Sin goods such as cigarettes and paan masala will attract the highest rate of 40 per cent. The new GST rates of items is given below:
GST on Daily Essentials
| Items | From | To |
|---|---|---|
| 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
| Items | From | To |
|---|---|---|
| Tractor Tyres & Parts | 18% | 5% |
| Tractors | 12% | 5% |
| Specified Bio-Pesticides, Micro-Nutrients | 12% | 5% |
| Drip Irrigation System & Sprinklers | 12% | 5% |
| Agricultural, Horticultural or Forestry Machines for Soil Preparation, Cultivation, Harvesting & Threshing | 12% | 5% |
Relief in Healthcare Sector
| Items | From | To |
|---|---|---|
| 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% |
Affordable Education
| Items | From | To |
|---|---|---|
| Maps, Charts & Globes | 12% | Nil |
| Pencils, Sharpeners, Crayons & Pastels | 12% | Nil |
| Exercise Books & Notebooks | 12% | Nil |
| Eraser | 5% | Nil |
Automobiles Made Affordable
| Items | From | To |
|---|---|---|
| Petrol & Petrol Hybrid, LPG, CNG Cars (≤ 1200 cc & 4000mm) | 28% | 18% |
| Diesel & Diesel Hybrid Cars (≤ 1500 cc & 4000mm) | 28% | 18% |
| 3 Wheeled Vehicles | 28% | 18% |
| Motor Cycles (350 cc & below) | 28% | 18% |
| Motor Vehicles for Transport of Goods | 28% | 18% |
Electronic Appliances
| Items | From | To |
|---|---|---|
| Air Conditioners | 28% | 18% |
| Television (above 32”) including LED & LCD TVs | 28% | 18% |
| Monitors & Projectors | 28% | 18% |
| Dish Washing Machines | 28% | 18% |
Process Reforms
- Registration:
- Automatic registration within 3 working days.
- Identified by the system based on data analysis.
- Who determines he would not pass Input Tax Credit exceeding ₹2.5 lakh per month and opts for the Scheme.
- Refund:
- Sanction of provisional refunds by proper officer through system-based risk evaluation.
- Applicable for zero-rated supplies.
- Supplies with inverted duty structure.
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