GST New Rates in India

[rajivkumar]

Has anyone checked out the new GST rates in India? The government has recently made some changes that impact various goods and services. Some rates have been reduced to give relief, while others have been revised upwards. What do you all think—will these new GST rates help businesses and consumers, or make things more complicated? Would love to hear your views!

 

[kuldeep]

From September 22, 2025, India will adopt a simplified GST structure: 0% on essentials, 5% on daily goods and services, 18% on most other items, and 40% on luxury and sin goods. Life and health insurance are fully exempt from GST under the new system.

 

[peterkavinsky]

The new GST rates in India (Sept 2025) have been simplified to 5% and 18%, with a 40% tax on luxury & sin goods. Essentials and FMCG are now at 5%, electronics at 18%, and life/health insurance is exempt (0%).

 

[nikhilrajoria]

GST rates are differentiated by categories: 0, 5, 12, 1,8, and 28, where essential goods have lower taxation and luxury goods belong to a greater category.

 

[Shane Warne]

From September 22, 2025, India now uses a simplified GST structure:

• 5% — for most essentials, everyday items, and services.
• 18% — for standard goods and services (e.g., electronics, appliances, small vehicles).
• 40% — a de-merit rate for “sin” and luxury goods like tobacco, aerated drinks, high-end cars, and pan masala.
  
  The previous 12% and 28% slabs have been eliminated.
  

 

[Lucas]

New GST Rates in India (From Sept 22, 2025):

1. 0% – Essentials (milk, paneer, roti, insurance)
2. 5% – Daily-use items (soap, ghee, hotel < ₹7,500)
3. 18% – Standard goods (TVs, cars, cement)
4. 40% – Luxury/sin goods (SUVs, tobacco, yachts)

 

[Gsusangrey]

Here’s the latest update on India’s revamped GST structure (effective from September 22, 2025):

The GST slabs have been simplified to:

• 5% for essentials
• 18% for standard goods and services
• 40% for luxury or “sin” items

 

[Jarwish]

India’s new GST rates (2025) are 5% for essentials, 18% standard rate for most goods/services, and 40% for luxury/sin items like tobacco and aerated drinks, promoting simplicity and compliance.