The Government has reduced GST on several items across different categories. The new tax structure has two major slabs now 5 percent and 18 percent, and a whopping 40 percent for sin goods. These decisions were taken at the 56th Meeting of the GST Council, chaired by the Union Finance Minister Nirmala Sitharaman on 3 September 2025. The GST rate rationalisation will be implemented from September 22.
Highlights:
♦ The GST Council endorsed a transition from the existing four-tier GST framework (5, 12, 18 and 28 per cent) to a simplified two-rate structure of 5 and 18 percent.
♦ A special 40 percent slab is, however, proposed for a select few items such as high-end cars, tobacco and cigarettes.
♦ Items such as hair oil, toilet, soap bars, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware and other household articles are now at 5%.
♦ Essential food items will remain tax-free, whilst various everyday food products and beverages will likely see reduced rates from 18 percent to 5 percent.
♦ This includes butter, ghee, dry nuts, condensed milk, sausages, meat, sugar boiled confectionery, jam, fruit jellies, tender coconut water, namkeen, 20-litre packaged drinking water, fruit pulp, juice, milk-based beverages, ice cream, pastry, biscuits, corn flakes, cereals and sugar confectionery.
New GST rates..
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
18%
5%
Feeding Bottles, Napkins for Babies & Clinical Diapers
12%
5%
Sewing Machines & Parts
12%
5%
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%
Individual Health & Life Insurance
18%
Nil
Thermometer
18%
5%
Medical Grade Oxygen
18%
5%
All Diagnostic Kits & Reagents
12%
5%
Glucometer & Test Strips
12%
5%
Corrective Spectacles
12%
5%
Petrol & Petrol Hybrid, LPG, CNG Cars
(not exceeding - 1200 cc & 4000mm)
28%
18%
Diesel & Diesel Hybrid Cars (not exceeding - 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%
Maps, Charts & Globes
12%
Nil
Pencils, Sharpeners, Crayons & Pastels
12%
Nil
Exercise Books & Notebooks
12%
Nil
Eraser
5%
Nil
Air Conditioners
28%
18%
Television (above 32") (including LED & LCD TVs)
28%
18%
Monitors & Projectors
28%
18%
Dish Washing Machines
28%
18%