GST Rates reduced to just three slabs:
- 5%
- 18%
- 40%
Effective 22 September 2025, the new rates will be as follows.
0%
- UHT Milk
- Paneer
- Indian Breads - Chapati, Naan,
Roti, etc
- Life-saving medicines (Cancer,
life-threatening diseases)
- Term Insurance (Endowment, Term
Life, ULIP)
- Health Insurance (Family Floater, Individual, etc)
5%
- Spectacles
- All packaged foods -
coffee/noodles/biscuits, etc
- Soaps, shampoos and all household
items.
- Renewable energy - Solar, biogas,
water treatment, windmills and their products
- Cycles
- Bio Pesticides
- Handicrafts
- Leather Goods
- Diagnostic Tools - Blood sugar
monitor, BP Monitor, etc.
- EVs
18%
- Air conditioners
- Televisions
- Dishwashers
- Bikes - Less than or equal to
350cc
- Small Cars (<1200cc for petrol
cars, <1500 cc for Diesel cars & Sub 4 metre cars)
- Cement
- 3 wheelers
- Buses
- Trucks
- Ambulances
- Automobile parts
40%
- Tobacco products - Cigarettes,
Pan, Gutkha, etc
- Aerated/Caffeinated/Carbonated
beverages (Coke/Pepsi/Soda, etc)
- Mid-Size and Large Cars (that do
not fall under small cars)
- Bikes - greater than 350cc
- Aircraft for personal use
- Yachts
- Helicopters for personal use.
- Luxury cars, including the German
Trio, Lexus, Tesla, etc
- Super luxury items
Apart from the above GST rates, no individual surcharge/cess is to be levied further.
The GST Council announced sweeping rate cuts for common-use items ranging from packaged and branded food items like fruit juices, butter, cheese, condensed milk, pasta, packaged coconut water, soya milk drinks, nuts, dates and sausages, and medical items including medical grade oxygen, gauze, bandages, diagnostic kits (5 per cent from 12 per cent) to nil GST rate for ultra-high temperature milk, chhena or paneer, pizza bread and khakra, plain chapati or roti and education item of erasers from 5 per cent at present.