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.
