From September 22, 2025, the revamped GST structure simplified rates into Nil, 5%, 18% and 40%. Essentials become cheaper with many items moved to 0% or 5%, while sin goods and luxury items continue to attract a steep 40% to discourage harmful or luxury-linked spending.
New GST Slab Structure
- GST streamlined to 4 brackets: Nil, 5%, 18%, and 40%.
- Most legacy 12% and 28% categories shifted to 5% and 18% for improved affordability and compliance.
- Sin and luxury items remain at 40% (plus cess where applicable).
What Gets Cheaper – Daily Essentials
- UHT milk, Indian breads: 5% ➝ Nil.
- Condensed milk, butter, ghee, cheese: 12% ➝ 5%.
- Personal care basics (hair oil, toothpaste, toilet soap, toothbrush, shaving cream): 18% ➝ 5%.
- Nuts and dry fruits: 12% ➝ 5%.
- Utensils, feeding bottles, baby diapers, sewing machines, parts: 12% ➝ 5%.
- Sweets: refined sugar, syrups, toffees, candies ➝ 5%.
- Packaged foods: vegetable oils, spreads, meat/fish products, namkeens, bhujia, snacks ➝ 5%.
- Packaged water (without flavours/sugar): now 5%.
Agriculture & Fertilisers
- Fertilisers: 12–18% ➝ 5%.
- Tractor tyres, parts: 18% ➝ 5%.
- Tractors: 12% ➝ 5%.
- Farm equipment, including irrigation and cultivation machines: 12% ➝ 5%.
Healthcare & Education
- Thermometers: 18% ➝ 5%.
- Health and life insurance: to nil.
- Medical oxygen, test kits, devices, spectacles: 12% ➝ 5%.
- Education supplies: maps, notebooks, pencils, crayons, erasers ➝ nil.
Electronics & Automobiles
- Air conditioners, large TVs, monitors, projectors, dishwashers: 28% ➝ 18%.
- Smaller cars (petrol, hybrid, LPG, CNG ≤1200 cc and 400 mm): 28% ➝ 18%.
Other Goods and Sectors
- Renewable energy items, construction materials, sports goods, toys, leather, wood items, handicrafts: 12% ➝ 5%.
What Stays High or Gets Costlier
- Pan masala, tobacco, gutkha, cigarettes, and bidis remain at steep slabs with added cess.
- Tax calculation shifted to Retail Sale Price to curb evasion, raising the effective burden.
- Sweetened and flavoured drinks, including aerated beverages: 28% ➝ 40%.
Read More: GST New Rates: GoM Proposes 18% GST on Premium EV Cars!
Conclusion
The revised GST brings most goods into 5% or 18% slabs effective September 22, 2025, ensuring essentials are cheaper and streamlined for consumers. While farm inputs, education, healthcare, and daily-use products see relief, luxury and sin goods continue to draw high rates to balance affordability with policy objectives.
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