The Goods and Services Tax (GST) rates will change on September 22nd, according to the GST Council's announcement. The reforms are intended to simplify the tax structure and affect a wide range of goods and services. The tariff on several common foods will be lowered from 18% to 5%. The goal of the GST reform is to move most goods into the 5% and 18% tax bands.
"The revised rates will take effect from September 22, coinciding with Nratri's first day, except for gutkha, tobacco and related products, and cigarettes," Sitharaman said.
New GST Rates List 2025 (Effective from Sept 22, 2025)The new GST rates in India will come into effect from September 22, 2025. The government has revised taxes on food items, daily-use products, vehicles, healthcare, and luxury goods. These changes aim to make essentials cheaper while keeping higher rates on luxury and sin goods.
New GST Rate on Essential Food ItemsThe central government has changed the GST slab for essential food items. Check the full list below:
Item
Revised GST Rate
Previous Rate
UHT (Ultra High Temperature) Milk
0%
5%
Pre-packaged & labelled Chhena/Paneer
0%
5%
Roti
0%
5%
Pizza bread
0%
5%
Khakhra
0%
5%
Condensed milk
5%
12%–18%
Butter
5%
12%–18%
Ghee
5%
12%–18%
Cheese
5%
12%–18%
Dairy spreads
5%
12%–18%
Chocolates
5%
18%
Pasta
5%
18%
Baked goods
5%
12%–18%
Namkeens
5%
12%–18%
New GST Rate on Dry Fruits, Spices & Other IngredientsGST slab has been lowered for dry fruits that will be sold in India. Check the full list below:
Item
Revised GST Rate
Previous Rate
Dried nuts
5%
12%–18%
Dried fruits
5%
12%–18%
Malt
5%
12%–18%
Starches
5%
12%–18%
Vegetable extracts
5%
12%–18%
Sausages
5%
12%–18%
Sugar products
5%
12%–18%
New GST Rate on Beverages (Sugary, Aerated & Caffeinated)These items now fall under the highest GST slab as "sin goods".
Item
Revised GST Rate
Previous Rate
Packaged coconut water
40%
18%–28%
Soya milk drinks
40%
18%–28%
Other non-alcoholic sugary beverages
40%
18%–28%
Caffeinated beverages
40%
28%
Carbonated fruit drinks
40%
28%
New GST Rate on Sin GoodsThese products carry the highest GST rate as luxury/sin goods.
Item
Revised GST Rate
Previous Rate
Pan masala
40%
28% + Cess
Tobacco products
40%
28% + Cess
Cigars
40%
28% + Cess
Cigarettes
40%
28% + Cess
Bidis
18%
28% + Cess
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New GST Rate on Industrial Goods (Cement, Coal, etc.)Key raw materials and construction-related items new GST slab is as follows:
Item
Revised GST Rate
Previous Rate
Cement (Portland, slag, etc.)
18%
28% + Cess
Coal, lignite, peat
18%
5%
New GST Rate on Healthcare & Medical SuppliesEssential health-related items got a tax cut. Check the new rate below:
Item
Revised GST Rate
Previous Rate
Medical grade oxygen
5%
12%
Diagnostic kits
5%
12%
Essential drugs
5%
12%
Reagents
5%
12%
Surgical supplies
5%
12%
New GST Rate on Lifestyle & Household ItemsThe central government has also lowered the GST tax slab for lifestyle and household goods:
Item
Revised GST Rate
Previous Rate
Personal care items
5%
12%–18%
Toiletries
5%
12%–18%
Furniture
5%
12%–18%
Handicrafts
5%
12%–18%
Utensils
5%
12%–18%
Toys
5%
12%–18%
Musical instruments
5%
12%–18%
New GST Rate on Automobiles & Luxury VehiclesTwo-wheelers, cars, and high-end vehicles will be cheaper now with the new GST Rate.
Item
Revised GST Rate
Previous Rate
Motorcycles up to 350cc
18%
28%
Scooters
18%
28%
Small cars
18%
28%
Bicycles
18%
28%
Motorcycles above 350cc
40%
28% + Cess
Luxury cars
40%
28% + Cess
Aircraft
40%
28% + Cess
Yachts
40%
28% + Cess
Pistols
40%
28% + Cess
New GST Rate on Entertainment & ServicesCheck the new GST rate on movie tickets and other services below:
Item
Revised GST Rate
Previous Rate
Cinema tickets (≤ ₹100)
5%
12%
Cinema tickets (> ₹100)
40%
18%–28%
Insurance premiums (life, health, general)
0%
18%
Private tuition
0%
18%
Vocational courses
0%
18%
Charitable hospital services
0%
12%
Charitable education services
0%
12%
Hotels (₹1,001–₹7,500 per night)
5%
12%
Beauty & wellness (salons, gyms, spas)
5%
18%
This reform simplifies the tax system and impacts a wide range of products, from food and healthcare to vehicles and entertainment. Consumers and businesses should check the revised rates to plan their purchases and budgets accordingly.
New GST Rate Full List: PDF Download