GST New Rate List in India 2025: Updated GST Slabs, Cheaper & Costlier Items

9/9/2025

GST New Rate List in India 2025: Updated GST Slabs, Cheaper & Costlier Items

The GST Council has rolled out a major reform in September 2025 under the Next-Gen GST Reform initiative. With effect from 22nd September 2025, the new GST rates are designed to make taxation simpler, transparent, and consumer-friendly.

From groceries to insurance, and from electronics to luxury cars — here’s everything you need to know about the GST new rate list 2025 in India.

📊 Current GST Tax Slabs (Till 21st September 2025)

0% (Exempt): Essential daily items like milk, bread, vegetables, fruits.
5% GST Slab: Common packaged food items.
12% GST Slab: Processed food, juices, frozen meat, butter, ghee, nuts.
18% GST Slab: Services (restaurants, telecom, banking), toiletries, cosmetics, hair oil, toothpaste, capital goods.
28% GST Slab: Electronics (TVs, refrigerators), small cars & bikes, cement, paints, premium/luxury vehicles, and sin goods (tobacco).

🆕 New GST Tax Slabs (Effective from 22nd September 2025)

0% GST (Exempt): Daily essentials + Newly added personal health & life insurance, exercise books, notebooks, maps, charts.
5% GST Slab: Packaged food, medicines, footwear, small household goods, tableware, stationery, agricultural machinery.
18% GST Slab: Restaurant services, telecom, financial services, daily-use appliances (TV, washing machine, laptop), motorcycles below 350cc, cars below 1200cc, cement, ACs.
40% GST Slab (Special): Luxury cars, premium bikes, tobacco, cigarettes, sugary/caffeinated drinks.

📌 Key Highlights of the 2025 GST Reform

✅ Simplified Structure – fewer slabs, easier to understand.
✅ Essentials Cheaper – health insurance, groceries, toiletries.
✅ Luxury Expensive – high-end cars, tobacco, sin goods.
✅ Digital First – easier GST return filing online.
✅ Two Core Slabs – now mostly 5% and 18%, removing confusion of 12% and 28%.

📊 Comparison Table: Old GST Rate vs New GST Rate

Items	Old Rate (Till 21 Sep 2025)	New Rate (From 22 Sep 2025)
Daily Essentials (Milk, Bread, Curd)	Nil	Nil
Hair Oil, Shampoo, Toiletries	18%	5%
Butter, Ghee, Cheese	12%	5%
Personal Health & Life Insurance	18%	Nil
Air Conditioners	28%	18%
TV & Refrigerator	28%	18%
Small Cars (Below 1200cc)	28%	18%
Bikes (Below 350cc)	28%	18%
Tableware, Utensils, Bamboo Furniture	12%	5%
Stationery (Pencils, Notebooks, Charts)	12%	5%
Cement	28%	18%
Hotel Tariffs up to ₹7500	12%	5%
Agricultural Machinery	12%	5%
Aerated / Sugary Beverages	28%	40%
Luxury Cars & Premium Bikes	28%	40%
Tobacco, Cigarettes, Sin Goods	28%	40%

💰 What Gets Cheaper?

✅ Hair oil, shampoo, and toiletries
✅ Butter, ghee, cheese
✅ Personal health & life insurance (now 0%)
✅ ACs, TVs, refrigerators, small cars & bikes
✅ Agricultural machinery, stationery, hotel stays under ₹7500

💸 What Remains the Same?

Essentials like milk, bread, vegetables (still Nil)
Most services like restaurants, telecom, education, financial services (18%)

🚫 What Gets Costlier?

❌ Luxury cars, premium bikes
❌ Tobacco and cigarettes
❌ Sugary & caffeinated drinks

🗓 Timeline of GST Rate Change

The new GST structure is effective from 22nd September 2025 across India.

📝 Conclusion

The GST New Rate List 2025 is a game-changer for the Indian economy. By reducing slabs to just 5% and 18%, along with a 0% for essentials and 40% for luxury/sin goods, the system is now much simpler, consumer-friendly, and business-friendly.

This reform not only lowers the tax burden on the common man but also ensures luxury pays more, essentials pay less.