Implementation Date
- The new GST structure takes effect on 22 September 2025, corresponding with the start of Navratri.
Overview of GST Structure
- The GST Council has streamlined the tax regime, reducing it from multiple slabs (5%, 12%, 18%, 28%) to:
- 5% and 18% as the main slabs.
- A 40% slab for sin and ultra-luxury goods.
Zero (Nil) GST—Now Even Broader
- Certain items now attract 0% GST, including:
- Ultra-high-temperature (UHT) milk, paneer, roti/paratha/chapati, and similar everyday staples.
- Life-saving medicines, especially key cancer therapies and critical chronic-disease drugs.
- Life and health insurance premiums have also been made GST-exempt.
5% GST — Essentials & Everyday Goods
Many daily-use items have been moved to the 5% slab:
- Food & Grocery: Snacks like namkeen, bhujia, instant noodles, chocolates, biscuits, ghee, cheese, butter, packaged water, fruit juices, dry fruits, and basic staples.
- Personal Care: Hair oil, shampoos, soaps, toothpaste, other toiletries.
- Medical & Healthcare: Broader range of medicines and medical devices, diagnostic kits, etc.
- Education Supplies: Stationery, maps, charts, feeding bottles, globes, and similar items.
- Agriculture & Energy: Fertilizer inputs (like sulphuric acid, ammonia), seeds, bio-pesticides, drip irrigation, renewable energy equipment, green hydrogen technologies.
- Electric Vehicles: EVs and hydrogen fuel cell vehicles—all now at 5%.
18% GST — Consumer Durables & Services
The 18% slab now covers a broad range of durability and convenience items:
- Electronics & Appliances: Air conditioners, televisions, washing machines, refrigerators.
- Construction & Transit: Cement and similar building materials.
- Automobiles: Small cars (under 350 cc), bikes, goods vehicles, and auto parts.
- Logistics & Freight: Multimodal freight and haulage rentals reduced to 5% or moved to 18%; coal up from 5% to 18%.
- Hospitality & Travel:
- Hotel rooms up to ₹7,500/night: Down from 12% to 5% (without ITC). Moneycontrol
- Air travel: Economy fares remain at 5%; premium classes move to 18%. The Economic Times
- Fitness & Personal Services: Gyms, salons, and yoga services now taxed at 5%.
40% GST — Sin & Luxury Goods
- A steep 40% GST applies to high-end and sin goods, replacing the earlier 28% + cess regime:
- Tobacco products, pan masala, gutkha, beedis—though current GST plus compensation cess rates remain until cess-linked obligations are cleared.
- Luxury items like yachts, helicopters, private jets, premium liquor, and ultra-luxury cars will fall under this rate.
- Aerated/sugary drinks and sweets (with added sugar or flavoring) also taxed at 40%.
GST Rate Table (Effective from 22 September 2025)
| GST Rate | Category | Examples / Items Covered |
| 0% (Nil GST) | Staples & Essentials | UHT milk, paneer, roti/paratha/chapati, other daily staples |
| Healthcare | Life-saving medicines (cancer, chronic disease), critical drugs | |
| Insurance | Life insurance premiums, health insurance premiums | |
| Education Supplies | Some items like maps, charts, stationery (partly exempt) | |
| 5% | Food & Grocery | Snacks (namkeen, bhujia, noodles), biscuits, chocolates, ghee, cheese, butter, packaged water, fruit juices, dry fruits |
| Personal Care | Hair oil, shampoos, soaps, toothpaste, toiletries | |
| Healthcare | Broader range of medicines, medical devices, diagnostic kits | |
| Education | Stationery, feeding bottles, globes | |
| Agriculture & Energy | Fertilizer inputs (sulphuric acid, ammonia), seeds, bio-pesticides, drip irrigation, renewable energy equipment, green hydrogen | |
| Automobiles | Electric vehicles, hydrogen fuel cell vehicles | |
| Hospitality & Services | Hotels up to ₹7,500/night, gyms, yoga centers, salons | |
| 18% | Consumer Durables | ACs, TVs, washing machines, refrigerators |
| Construction & Materials | Cement, building materials | |
| Automobiles | Small cars (under 350cc), bikes, goods vehicles, auto parts | |
| Logistics & Freight | Multimodal freight, haulage rentals, coal | |
| Hospitality & Travel | Premium air travel, hotels above ₹7,500/night | |
| 40% (Sin & Luxury) | Tobacco & Related | Cigarettes, gutkha, beedis, pan masala (with cess) |
| Luxury Goods | Yachts, helicopters, private jets, ultra-luxury cars, premium liquor | |
| Sugary Drinks | Aerated drinks, flavored/sweetened beverages |