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% |