GST Council Tax Rate Changes
56th GST Council Meeting | Effective from September 22, 2025
The GST Council has approved significant rate rationalization with a focus on common man, labor-intensive industries, farmers, agriculture, health, and key drivers of the economy. The changes simplify the tax structure to a 2-rate system with a Standard Rate of 18% and a Merit Rate of 5%, with a special de-merit rate of 40% for select goods.
All Changes
0% GST Items
5% GST Items
18% GST Items
40% GST Items
| Product/Service Description | Previous Rate | New Rate |
|---|---|---|
| Goods with 0% GST (Nil Rate) | ||
| Ultra-High Temperature (UHT) milk | 5% | 0% |
| Chena or paneer, pre-packaged and labelled | 5% | 0% |
| Pizza bread | 5% | 0% |
| Khakhra, chapathi or roti | 5% | 0% |
| Paratha, parotta and other Indian breads | 18% | 0% |
| Erasers | 5% | 0% |
| Uncoated paper for exercise books, notebooks | 12% | 0% |
| Exercise books, graph books, laboratory notebooks | 12% | 0% |
| Maps, charts, atlases, globes | 12% | 0% |
| Pencil sharpeners | 12% | 0% |
| Pencils, crayons, drawing charcoals, tailor's chalk | 12% | 0% |
| Goods with 5% GST | ||
| Butter, ghee, dairy spreads | 12% | 5% |
| Cheese | 12% | 5% |
| Pasta, noodles | 12% | 5% |
| Fruit juices | 12% | 5% |
| Sauces, ketchup, dressings | 12% | 5% |
| Ice cream | 18% | 5% |
| Chocolates, cocoa products | 18% | 5% |
| Corn flakes, cereal preparations | 18% | 5% |
| Hair oil, shampoo | 18% | 5% |
| Toothpaste, dental floss | 18% | 5% |
| Toilet soap | 18% | 5% |
| Tractors | 12% | 5% |
| Agricultural machinery | 12% | 5% |
| Bicycles and parts | 12% | 5% |
| Footwear (value ≤ ₹2500/pair) | 12% | 5% |
| Solar water heaters, solar cookers | 12% | 5% |
| Goods with 18% GST | ||
| Air conditioners | 28% | 18% |
| Televisions (all sizes) | 28% | 18% |
| Dishwashing machines | 28% | 18% |
| Small cars (engine ≤ 1200cc petrol/≤1500cc diesel) | 28% | 18% |
| Motorcycles (≤ 350cc) | 28% | 18% |
| Buses, trucks, ambulances | 28% | 18% |
| Cement | 28% | 18% |
| Footwear (value > ₹2500/pair) | 12% | 18% |
| Apparel (value > ₹2500/piece) | 12% | 18% |
| Goods with 40% GST (Special De-merit Rate) | ||
| Pan masala | 28% | 40% |
| Aerated beverages | 28% | 40% |
| Caffeinated beverages | 28% | 40% |
| Cigarettes, cigars | 28% | 40% |
| Tobacco products | 28% | 40% |
| Luxury cars (beyond specified limits) | 28% | 40% |
| High-capacity motorcycles (>350cc) | 28% | 40% |
| Aircraft for personal use | 28% | 40% |
| Yachts and pleasure vessels | 28% | 40% |
| Services with Revised GST Rates | ||
| Individual health insurance policies | 18% | 0% |
| Individual life insurance policies | 18% | 0% |
| Hotel accommodation (≤ ₹7500/day) | 12% | 5% |
| Beauty and wellness services (gyms, salons, yoga) | 18% | 5% |
| Air travel (other than economy class) | 12% | 18% |
| Casino, gambling, race club services | 28% | 40% |
