Table of Contents1. Introduction |
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Introduction
The Indian government has rolled out some important changes in the tax regime with the GST rate revision 2025. These updates include revised GST slabs and an updated list of goods and services. Whether you are a business owner, retailer or consumer, understanding the new GST rates 2025 is necessary for financial planning and compliance.
The main objective behind these revisions is to simplify the tax structure and make sure transparency and, most importantly to provide opportunities for savings under the GST reforms 2025. In this guide, we will break down the changes and explain how you can benefit and share the updated list of items with their new tax rates.
Save More with the Latest GST Reforms 2025
The GST reforms 2025 aim to make taxation more efficient and reduce the overall tax burden on consumers. With the revised slabs and exemptions many essential goods and services now come under lower GST rates which offer direct savings to households and businesses alike.
Here’s how you can save more with the latest GST reforms 2025:
- Lower GST Slabs on Essentials: Items like food grains, daily-use products and some healthcare supplies are now taxed at reduced rates which makes them more affordable.
- Business Savings: Businesses can take advantage of reduced GST on raw materials and inputs which improves margins and reduces costs for end consumers.
- Simplified Compliance: Streamlined GST processes reduce paperwork and administrative costs and indirectly contributing to savings
New GST Rates List 2025
The new GST rates 2025 are categorized across multiple slabs and items to balance revenue collection and consumer benefits. Here’s a simplified overview of the key changes:
New GST Rate on Essential Food Items
|
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 Ingredients
|
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)
|
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 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 |
New GST Rate on Industrial Goods (Cement, Coal, etc.)
|
Item |
Revised GST Rate |
Previous Rate |
|
Cement (Portland, slag, etc.) |
18% |
28% + Cess |
|
Coal, lignite, peat |
18% |
5% |
New GST Rate on Healthcare & Medical Supplies
|
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 Items
|
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 Vehicles
|
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 & Services
|
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% |
Conclusion
The GST rate revision 2025 and the updated list of items with their new tax rates provide an excellent opportunity for savings, better financial planning and streamlined compliance. By understanding these changes, you can optimize on expenses and take advantage of lower tax rates on essentials to stay ahead in business planning.
The latest GST reforms 2025 are designed to be more transparent, fair and consumer-friendly which makes it important for everyone to stay informed and leverage the benefits of this updated tax regime.
