GST Slabs After Revision
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0% (Tax-Free)
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5% (Essential & Daily-Use Items)
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18% (Standard Goods & Services)
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40% (Luxury & Sin Goods)
These changes (except some tobacco-related items) will apply from September 22, 2025.
0% GST (Tax-Free Items)
Food & Dairy:
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UHT milk
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Paneer (pre-packaged)
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Indian breads (roti, paratha, khakhra, pizza bread)
Healthcare:
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Life-saving drugs (cancer, rare diseases)
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Certain critical medicines
Insurance:
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Individual life insurance policies
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Health insurance (term, family floater, senior citizen, ULIP, endowment)
Education & Stationery:
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Pencils, crayons, notebooks, erasers
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Maps, atlases
5% GST (Essentials & Household Items)
Personal Care:
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Hair oil, shampoo, toothpaste
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Soap, shaving cream, toothbrush
Food & Beverages:
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Butter, ghee, cheese
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Dairy spreads, namkeens, instant noodles
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Sauces, pasta, cornflakes, chocolates, coffee, packaged snacks
Baby Products:
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Feeding bottles
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Baby napkins, clinical diapers
Healthcare Devices:
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Thermometers, glucometers
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Diagnostic kits, reagents
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Corrective spectacles
Agriculture & Environment:
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Tractors, tractor tyres and parts
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Bio-pesticides, micronutrients
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Drip irrigation systems, horticultural tools
Household Goods:
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Bicycles, kitchen utensils, handicrafts
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Marble blocks, granite, tableware
Energy & Environment:
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Renewable energy devices and components (solar cookers, solar water systems)
Services:
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Salons, barbers, gyms, yoga centres
18% GST (Standard Goods & Services)
Vehicles:
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Small cars (petrol ≤1200cc, diesel ≤1500cc)
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Motorcycles ≤350cc
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Auto-rickshaws (3-wheelers)
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Goods transport vehicles
Electronics & Appliances:
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Televisions (all sizes)
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Air conditioners
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Monitors, projectors
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Dishwashers
Construction Materials:
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Cement
40% GST (Luxury & Sin Goods)
Tobacco & Pan Masala:
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Cigarettes, bidis, gutka, chewing tobacco, zarda
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Pan masala, unmanufactured tobacco
Sugary & Caffeinated Drinks:
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Aerated drinks with sugar or flavour
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Packaged sweetened beverages
Luxury Vehicles & Goods:
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Motorcycles >350cc
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Premium/luxury cars
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Private aircraft, yachts, recreational vehicles
Leisure & Gaming:
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Casinos, gambling, betting
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Online gaming, lotteries, IPL tickets
Note: Tobacco-related products will remain under the current cess until dues are cleared, before moving to the 40% slab.
Impact on Consumers & Businesses
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Households: Savings on food staples, personal care, and baby products.
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FMCG: Companies like HUL, Nestle, Godrej to benefit from increased demand.
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Automobiles & Electronics: Small cars, TVs, and ACs remain in the standard slab, ensuring affordability.
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Healthcare & Insurance: Zero GST makes critical drugs and policies cheaper.
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Luxury & Sin Goods: Much costlier, curbing consumption.
Final Thoughts
This GST reform balances consumer relief with higher taxation on luxury and sin goods. It’s a win for middle-class families, the healthcare sector, and the renewable energy industry, while high-end consumption will face higher levies.