The GST Council has approved a significant overhaul of Goods and Services Tax (GST) rates, simplifying the tax structure into mainly 5% and 18% brackets. Most everyday items, especially food, beverages, personal care products, household goods and services, will see reduced GST rates. Gutkha, tobacco and cigarettes, which have higher rates.
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List of Items with Updated GST Rates 2025
1. Food & Agro Products
|
Item |
Old GST Rate |
New GST Rate |
|
Live horses |
12% |
5% |
|
UHT milk |
5% |
Nil |
|
Condensed milk |
12% |
5% |
|
Butter, ghee, butter oil, dairy spreads |
12% |
5% |
|
Cheese |
12% |
5% |
|
Chena/paneer (pre-packaged) |
5% |
Nil |
|
Dried nuts (almonds, pistachios, etc.) |
12% |
5% |
|
Dried fruits (dates, figs, mangoes) |
12% |
5% |
|
Malt, starches, vegetable extracts |
18% |
5% |
|
Meat products, fish oils, animal fats |
12–18% |
5% |
|
Sugar, confectionery, chocolates, bakery products |
12–18% |
5% |
|
Roti, chapathi, paratha, pizza bread |
5–18% |
Nil |
|
Namkeens, bhujia, soya products |
12% |
5% |
2. Beverages, Tobacco, Cement, Coal, Chemicals, Fertilizers, Medicines
|
Item |
Old GST Rate |
New GST Rate |
|
Drinking water (20L) |
12% |
5% |
|
Fruit juices (non-carbonated) |
12% |
5% |
|
Carbonated beverages |
28% |
40% |
|
Bidis |
28% |
18% |
|
Cigars, cigarettes, other tobacco products |
28% |
40% |
|
Cement |
28% |
18% |
|
Coal & lignite |
5% |
18% |
|
Medical grade oxygen, anaesthetics |
12% |
5% |
|
Fertilizer micronutrients |
12% |
5% |
|
Essential & specialty medicines |
5–12% |
0–5% |
3. Personal Care, Toiletries, Household Items
|
Item |
Old GST Rate |
New GST Rate |
|
Talcum powder, hair oil, shampoo |
18% |
5% |
|
Toothpaste, dental floss |
12–18% |
5% |
|
Surgical gloves |
12% |
5% |
|
Leather & handicrafts (bags, wallets, home decor) |
12% |
5% |
|
Wooden & bamboo items, furniture |
12% |
5% |
|
Glassware, ceramics, pottery, utensils |
12–18% |
5% |
|
Paper, cork, textiles, floor coverings |
12–18% |
0–5% |
4. Electronics, Automobiles, Luxury Goods
|
Item |
Old GST Rate |
New GST Rate |
|
TV, AC, fridge, washing machine |
28% |
18% |
|
Electric appliances (microwave, mixer, heater) |
28% |
18% |
|
Motorcycles ≤350cc |
28% |
18% |
|
Cars (small & mid-size) |
28% |
18% |
|
SUVs & luxury cars |
28% |
40% |
|
Electric vehicles (2W, 3W, 4W) |
12% |
5% |
|
Aircraft, yachts, revolvers |
28% |
40% |
5. Services
|
Service |
Old GST Rate |
New GST Rate |
|
Beauty, wellness, spas, salons |
18% |
5% |
|
Fitness centres, gyms, yoga studios |
18% |
5% |
|
Medical & diagnostic services |
18% |
5% |
|
Educational services (tuition, coaching ≤ Class 12) |
18% |
Nil |
|
Vocational training & skill development |
18% |
Nil |
|
Charitable hospital & trust services |
12% |
Nil |
|
Hotels (₹1,001–₹7,500/day) |
12% |
5% |
|
Cinema tickets ≤₹100 |
12% |
5% |
|
Cinema tickets >₹100 |
18% |
40% |
|
Insurance premiums |
18% |
Nil |
Most items now fall under 5% and 18% slabs, with luxury goods, tobacco and certain beverages at 28–40%.
Yes. Reduced rates on staples, dairy and essential services will lower retail prices, giving immediate relief to consumers.
Lower GST on essential items will reduce input costs for small retailers and simplify compliance, especially for stores under composition schemes.
Potentially yes, as lower rates on essential goods reduce tax revenue, but increased compliance and economic growth may offset the loss.
No. Exports remain zero-rated, so international trade is largely unaffected.
Manufacturers of staples, dairy and personal care items may see lower input costs and simplified compliance, improving operational efficiency.
Yes. Private tuition and coaching up to Class 12 now attract Nil GST, including some online or hybrid courses.
Small cars and motorcycles ≤350cc see reduced GST (18%), while SUVs and luxury cars remain at 40%.
Yes. Essential drugs and specialty medicines now have 0–5% GST, improving access to healthcare.
Yes. Fewer slabs and simpler rates (5%, 18%, Nil, 28–40%) reduce invoice errors, filing complexity and disputes for both businesses and consumers.
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