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.
