The new GST rate list in India 2025

The new GST rate list in India, effective from September 22, 2025, simplifies the previous four-slab system into two main slabs—5% and 18%—with special rates for some luxury and sin goods set at 40%. Many daily essentials are now either tax-exempt or taxed at a reduced rate, while a handful of luxury and specific goods are taxed at higher rate.

Key GST Rate Changes (2025)

0% (NIL Rate):

UHT Milk, pre-packaged paneer/chhena, roti, pizza bread, khakhra, health insurance, private tuition, some charitable and educational services��.

5% Rate:

Essentials such as butter, ghee, cheese, chocolates, pasta, namkeens, dried nuts/fruits, malt, starches, vegetable extracts, sausages, sugar products, personal care, toiletries, furniture, utensils, toys, musical instruments��.

Medical-grade oxygen, diagnostic kits, essential drugs, surgical supplies�.

Cinema tickets cheaper than ₹100, hotels (₹1,001–₹7,500 per night), beauty and wellness services�

18% Rate:

Most household appliances, electronics, furniture, utensils, motorcycles up to 350cc, scooters, bicycles, small cars, major industrial goods such as cement�

40% Rate:

Beverages (packaged coconut water, soya milk drinks, other sugary and caffeinated drinks), luxury vehicles, motorcycles above 350cc, luxury cars, aircraft, yachts, pistols, pan masala, tobacco, cigars, cigarettes, some cinema tickets.

Bidis:

Now taxed at 18%, down from the previous 28% plus cess�.

Notable Reductions & Exemptions

Many common foods are now at 0% GST versus a previous 5%–18%

Essential health and lifestyle drugs, and certain medical items, saw reductions to 5%�.

Premium/luxury products and sin goods were moved into the new 40% slab��.

Broad Impact

The reforms aim to make necessities cheaper, increase savings for consumers, and provide relief for the middle class, farmers, and artisans. The broadest bands now in everyday use are 5% and 18%, which covers nearly all products and services except sin and luxury goods�

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