GST New Rates 2026: Revised Slabs After GST 2.0 Reform
India’s GST rate structure underwent its most significant overhaul since the introduction of GST in 2017. The 56th GST Council meeting, held on September 3, 2025, unveiled GST 2.0 reforms introducing the GST new rates 2026, simplifying the tax slab structure to 5%, 18% and 40%, effective from September 22, 2025. The earlier five-tier structure of 0%, 5%, 12%, 18% and 28% has been replaced with this rationalized framework.
This guide covers the complete revised GST rate structure, category-wise item lists, the GST rate cuts and hikes, and the compliance steps businesses must take.
What Changed Under GST 2.0
The 56th GST Council meeting simplified GST rates in India to primarily two taxable slabs, 5% and 18%, along with a special 40% rate for luxury and sin goods. Essential items including dairy products, 33 lifesaving drugs and educational materials are now at a nil GST rate. Individual health and life insurance have been fully exempted from GST.
The GST rate changes, except for tobacco products and pan masala, were effective from September 22, 2025. Tobacco products and pan masala will move to the new rate through a separate notification after loan and interest obligations under the compensation cess account are discharged.
For the official government FAQs on the 56th GST Council decisions, see FAQs on 56th GST Council Decisions.
New GST Slab Structure
The revised primary GST rates consist mainly of two slabs, 5% and 18%, replacing the earlier 0%, 5%, 12%, 18% and 28% slabs. A higher 40% rate is applied to select luxury and sin goods, while a few niche rates like 3% and 0.25% continue to exist.
Composition taxable persons must pay GST at lower or nominal rates such as 1.5%, 5% or 6% on their turnover. TDS under GST is 2% and TCS under GST is 0.5%.
| GST Slab | Nature |
|---|---|
| 0% | Nil-rated or exempt |
| 5% | Merit rate for essentials |
| 18% | Standard rate |
| 40% | Sin and luxury goods |
| 3% | Gold, silver, jewellery |
| 0.25% | Rough diamonds and precious stones |
GST Rate Cuts: Effective September 22, 2025
Daily Essentials
| Item | Old Rate | New Rate |
|---|---|---|
| Hair oil, shampoo, toothpaste, toilet soap bar, tooth brushes, shaving cream | 18% | 5% |
| Butter, ghee, cheese and dairy spreads | 12% | 5% |
| Pre-packaged namkeens, bhujia and mixtures | 12% | 5% |
| Utensils | 12% | 5% |
| Feeding bottles, napkins for babies and clinical diapers | 12% | 5% |
| Sewing machines and parts | 12% | 5% |
Agriculture
| Item | Old Rate | New Rate |
|---|---|---|
| Tractor tyres and parts | 18% | 5% |
| Tractors | 12% | 5% |
| Specified 12 bio-pesticides and micro-nutrients | 12% | 5% |
| Drip irrigation system and sprinklers | 12% | 5% |
| Agricultural, horticultural or forestry machines for soil preparation, cultivation etc. | 12% | 5% |
Healthcare
| Item | Old Rate | New Rate |
|---|---|---|
| Individual health and life insurance | 18% | Nil |
| Thermometer | 18% | 5% |
| Medical grade oxygen | 12% | 5% |
| All diagnostic kits and reagents | 12% | 5% |
| Glucometer and test strips | 12% | 5% |
| Corrective spectacles | 12% | 5% |
| 33 drugs and medicines (listed in PIB press release) | 12% | Nil |
| Agalsidase Beta, Imiglucerase and Eptacog alfa activated recombinant coagulation factor VIIa drugs | 5% | Nil |
| Drugs such as Faricimab, Pertuzumab, Fluticasone Furoate and Umeclidinium and Vilanterol FF/UMEC/VI, Ocrelizumab and Brentuximab Vedotin | 12% | 5% |
Automobiles
| Item | Old Rate | New Rate |
|---|---|---|
| Petrol and petrol hybrid, LPG, CNG cars (up to 1200cc and up to 4000mm) | 28% | 18% |
| Diesel and diesel hybrid cars (up to 1500cc and up to 4000mm) | 28% | 18% |
| Three wheelers | 28% | 18% |
| Motorcycles up to 350cc | 28% | 18% |
| Motor vehicles for the transport of goods | 28% | 18% |
Education
| Item | Old Rate | New Rate |
|---|---|---|
| Maps, charts and globes | 12% | Nil |
| Pencils, sharpeners, crayons and pastels | 12% | Nil |
| Exercise books and notebooks | 12% | Nil |
| Eraser | 5% | Nil |
Electronic Appliances
| Item | Old Rate | New Rate |
|---|---|---|
| Air conditioners | 28% | 18% |
| Television above 32 inches including LED and LCD TVs | 28% | 18% |
| Monitors and projectors | 28% | 18% |
| Dish washing machines | 28% | 18% |
GST Rate Hikes: Effective September 22, 2025
| Category | Item | Old Rate | New Rate |
|---|---|---|---|
| Mining | Coal, lignite, peat | 5% | 18% |
| Sin goods | Tobacco and pan masala | 28% | 40% (at a later date via notification) |
| Beverages | Aerated waters | 28% | 40% |
| Beverages | Caffeinated beverages | 28% | 40% |
| Beverages | Carbonated beverages of fruit drinks or with fruit juice | 28% | 40% |
| Beverages | Other non-alcoholic beverages | 18% | 40% |
| Automobiles | Motor cars and larger hybrids beyond small-car thresholds | 28% | 40% |
| Automobiles | Motorcycles exceeding 350cc | 28% | 40% |
| Luxury items | Aircraft for personal use | 28% | 40% |
| Luxury items | Yachts and vessels for pleasure or sports | 28% | 40% |
| Luxury items | Smoking pipes and cigarette or cigar holders | 28% | 40% |
| Weapons | Revolvers and pistols | 28% | 40% |
| Entertainment | Admission to casinos, race clubs and sporting events like IPL | 28% with ITC | 40% with ITC |
| Entertainment | Licensing of bookmakers by race clubs | 28% with ITC | 40% with ITC |
| Actionable claims | Specified actionable claims including betting, casinos, gambling, horse racing, lottery and online money gaming | 28% with ITC | 40% with ITC |
| Leasing and rental | Leasing or rental without operator of goods attracting 40% GST | 28% with ITC | 40% with ITC |
| Paper sector | Dissolving-grade chemical wood pulp | 12% | 18% |
| Paper sector | Various papers and paperboards other than exercise-book paper | 12% | 18% |
| Textiles | Apparel and made-ups above Rs. 2,500 per piece | 12% | 18% |
| Textiles | Quilted cotton quilts and quilted products above Rs. 2,500 per piece | 12% | 18% |
Items at 0% GST (Nil-Rated and Exempt)
| Category | Description |
|---|---|
| Fresh Produce | Fresh and unprocessed vegetables (potatoes, tomatoes, onions, garlic, carrots, cucumbers, lettuce, cabbage, etc.); fresh fruits (bananas, apples, mangoes, oranges, grapes, berries, etc.); fresh nuts (coconuts, almonds, cashews, walnuts, etc.); fresh ginger and turmeric; tender coconut water (non-packaged); prasadam |
| Processed and Preserved Foods | Frozen or dried vegetables; unroasted coffee beans; unprocessed tea leaves; seeds of seed quality |
| Dairy and Eggs | Fresh, pasteurised and UHT milk; curd; lassi; buttermilk (non-packaged); paneer and chena; eggs (fresh, preserved or cooked); non-packaged honey |
| Grains, Cereals and Staples | Non-packaged cereals, flours and products (wheat, rice, millet, maize, oats, barley, sorghum etc.); pulse and potato flours; millet flour (70% or above, non-packaged); puffed, beaten or parched rice (muri, chira, khoi); murki (non-packaged); pappad; bread; roti; chapathi; paratha; pizza bread; khakhra |
| Water and Beverages | Plain (non-aerated) water; neera; date and palm neera |
| Animal Products and By-Products | Live animals (asses, mules, cattle, swine, poultry etc.); meat (fresh or chilled); non-packaged meat products; fish and aquatic animals (fresh or chilled); non-packaged fish and aquatic products; fish and shrimp seeds; human hair (unworked or waste); animal bones, horn-cores, bone powder; hoof and horn meal; hooves, claws, nails, beaks, antlers; semen (including frozen) |
| Animal Feed and Plant Materials | Animal feed (aquatic, poultry, cattle, hay) and by-products (de-oiled bran, cotton seed cake, pulse husks); dicalcium phosphate (feed grade, IS 5470:2002); fresh produce (hop cones, medicinal plants, seaweeds, forage); plant materials (sal and betel leaves, coconut shell, broom materials); lac and shellac |
| Textiles and Fiber Products | Silkworm cocoons; raw silk; silk waste; khadi fabric (KVIC); wool; raw or waste animal hair; jute fibres; coconut coir fibre and coir pith (unlabeled); cotton waste; Gandhi Topi; khadi yarn |
| Personal Care and Cosmetics | Kajal; kumkum; bindi; sindur; alta |
| Handcrafted and Artisanal Items | Earthen pots, clay lamps and idols (clay); glass bangles (non-precious); agricultural hand tools; pencil sharpeners; brooms (sarkanda, vegetable twig); pencils, crayons, pastels, chalk, slate pencils, slates; indigenous handmade musical instruments; khadi dona; sal or sisal leaves |
| Stationery and Paper Products | Printed or Braille books; newspapers; maps and globes; children’s picture books; printed music; postal items; exercise books; rupee notes; duty credit scrips; judicial stamps |
| Healthcare and Wellness | Medicines and drugs (Annexure I list); blood and its components; contraceptives and condoms; hearing aids and parts; sanitary towels, napkins and tampons |
| Miscellaneous Items | Indian national flag; human hair (dressed, thinned, bleached, worked); salt (table, pure sodium chloride, sea water); uranium ore concentrate; electrical energy; non-government lottery supplies; government-to-government grant goods; puja samagri (rudraksha, sacred thread, wooden khadau, panchamrit, vibhuti, honey, diya wick, roli, kalava, chandan tika); government auction gifts; rakhi (non-precious); waste (municipal, sewage, clinical); plastic, lac and shellac bangles; erasers; passenger baggage; spacecraft, satellites, launch vehicles; firewood, charcoal; deities (stone, marble, wood) |
Items at 5% GST
| Category | Description |
|---|---|
| Processed and Preserved Foods | Dried herbs, roots, jaribooti; dried fruits and nuts (desiccated coconuts, dried cashews, raisins); roasted coffee and processed tea; spices (pepper, vanilla, cinnamon, cloves, nutmeg, cardamom, saffron); preserved vegetables and fruits (with vinegar or sugar); jams, jellies, marmalades; roasted nuts and seeds; fruit and vegetable juices; coffee and tea extracts; yeasts and baking powders; sauces and condiments; soups and broths; ice cream; soya bari, pulse bari; batters; chutney powder; sweetmeats; namkeens, bhujia, mixtures; diabetic foods; other prepared foods |
| Dairy and Fats | Condensed and sweetened milk; yoghurt; fermented or acidified milk; whey and other dairy products; butter; ghee; dairy spreads; cheese (excluding paneer); eggs (non-shell, dried, cooked); packaged honey; animal fats (lard, beef, sheep, goat, fish, marine); wool grease; lanolin |
| Oils and Waxes | All types of oils (soyabean, groundnut, olive, palm, sunflower, coconut, rape and mustard, jojoba); hydrogenated and chemically modified oils; margarine; linoxyn; edible oil mixtures; glycerol; vegetable waxes; beeswax; edible insect-based oils and fats |
| Meat and Fish Products | Live horses; pre-packaged or labelled meat and fish products; sausages; preserved meat and offal; caviar; crustaceans and molluscs (prepared); meat and fish extracts and juices; fish soluble paste |
| Animal By-Products | Pig, hog and boar bristles; badger and brush-making hair; animal bone and horn-core materials (non-fresh, pre-packaged or labelled); bird skins and feathers (cleaned or disinfected); ivory; tortoise-shell; horns and antlers; coral and shell materials; ambergris; castoreum; civet; musk; bile; cantharides; pharmaceutical glands; other unspecified animal products |
| Sugar and Confectionery | Cane and beet sugar; refined sugar; jaggery; khandsari (packaged); rab; mishri; gajak; molasses; sugar syrups; sugar confectionery; boiled candies; cocoa and chocolate (beans, shells, paste, butter, powder); cocoa-containing food products |
| Cereals and Starches | Packaged millet flour (70% or above); bread and pastry mixes; doughs; seviyyan; pasta, noodles, macaroni; tapioca, sabudana; corn flakes, bulgar wheat, cereal flakes; pastries, cakes, biscuits, rusks, toasted bread; packaged cereals, flours and starches; groats, suji, dalia, malt, gluten |
| Beverages | Mineral water (unsweetened); plant-based milk drinks; soya milk; fruit juice and pulp drinks (non-carbonated); milk-based beverages; ethyl alcohol (for OMC blending) |
| Apparel and Clothing | Knitted or crocheted apparel and accessories up to Rs. 2,500 per piece; non-knitted apparel up to Rs. 2,500 per piece; made-up textile sets up to Rs. 2,500 per piece; worn clothing, rags and footwear up to Rs. 2,500 per pair; textile caps, hats, umbrellas, walking sticks, whips, crops and accessories |
| Textiles and Fibers | Silk, wool, cotton, plant fibre and manmade yarns and fabrics; synthetic and technical textiles; cordage, ropes, carpets, rugs, embroidery, zari, lace and coated or rubberised fabrics; materials for industrial and technical textile use |
| Metals and Metal Products | Metal boxes, utensils, milk cans, nails, sewing needles, kerosene stoves and burners, solar cookers, household articles (iron, steel, copper, aluminium, brass), bells, gongs, metal ornaments and statuettes, picture frames, mirrors and bidriware |
| Stone and Stone Products | Sand lime bricks; stone inlay crafts; stone ornaments (statues, vases, bowls, cups, ashtrays, paperweights) |
| Ceramics and Pottery | Ceramic and porcelain pots, jars, containers; tableware, kitchenware and ornamental household or toilet articles |
| Minerals and Raw Materials | Natural and unprocessed minerals (iron pyrites, sulphur, graphite, quartz, clays, phosphates, gypsum, mica, talc, feldspar, ores, slag, fly ash etc.) |
| Fuels and Energy | Bio-gas; coke and semi-coke; kerosene (PDS), bunker fuel; LPG for domestic and non-domestic exempt consumers; hydrogen and fuel-cell vehicles; EV chargers; other biofuels |
| Chemicals (Inorganic) | Menthol (natural), enriched boron and KBF4, acids (sulphuric, nitric, phosphoric), ammonia, oxidisers, nuclear-grade materials, medical oxygen, hydrogen peroxide, air, fertiliser chemicals, trace micronutrients |
| Chemicals (Organic) | Gibberellic acid; extracts from menthol and its derivatives (crystals, peppermint, spearmint oils, DTMO, DMO) |
| Pharmaceuticals and Medical Supplies | Insulin, drugs and vaccines; diagnostic kits; ORS; medicaments for human and veterinary use (including Ayurvedic, Unani etc.); dressings, sutures and medical plasters |
| Medical Devices and Equipment | Stents, dialysis units, glucometers, thermometers, orthopaedic and prosthetic aids, X-ray machines, surgical instruments, assistive devices and medical apparatus for diagnostics or therapy |
| Agricultural and Farming Equipment | Tractor engines, pumps, sprinklers, irrigation systems, soil machinery, harvesting tools, bee-keeping and poultry gear, solar and wind energy units, biogas and composting systems, photovoltaic cells and accessories |
| Transport and Vehicles | Aircraft, helicopters, spacecraft, ships, bicycles, tricycles, tractors, trailers, non-motorised vehicles and parts of aircraft, ships and transport vehicles |
| Furniture and Furnishings | Bamboo, cane and rattan furniture; coir products; quilts up to Rs. 2,500; seats, lanterns, lamps and glass chimneys |
| Toys and Games | Toy balloons, tricycles, scooters, pedal cars, cards, chess, carrom, ludo, board games, sports goods, fishing tackle |
| Art and Collectibles | Paintings, collages, mosaics, original prints and sculptures, stamps, first-day covers, collections (zoological, botanical, historical) and antiques (over 100 years old) |
| Miscellaneous and Specialty Items | Worked ivory, bone, coral, mother of pearl; broomsticks; toothbrushes; fasteners; combs; defence and police equipment; matches and safety matches |
| Raw and Processed Materials | Non-seed quality seeds; oil seed flours; gums and resins; asafoetida, agar-agar; plaiting materials; vegetable-based products (cotton linters, soap nuts, rudraksha, tendu leaves, mehendi paste); animal feed by-products |
| Leather and Leather Goods | Raw hides and skins (fresh, salted, dried, pickled); tanned and crust leather (prepared or metallised); leather goods (bags, gloves); leather dust, powder and flour |
| Rubber and Plastics | Feeding bottles, biodegradable bags, natural rubber products, scrap and waste, latex thread, tyres and tubes (tractor, bicycle, aircraft), bottle nipples, gloves, rubber bands |
| Photography and Film | Medical X-ray plates and films; developed photographic and cinematographic films (non-feature) |
| Personal Care and Cosmetics | Talcum and face powder, hair oil, shampoo, toothpaste, shaving products, toilet soap |
| Bio-Based Products and Pesticides | Bio-pesticides (Bacillus, Trichoderma, neem); silicon wafers; biodiesel; fertilisers; tanning extracts; agarbatti and incense; natural glues and adhesives |
| Religious and Cultural Items | Rosaries, prayer beads, hawan samagri, biomass briquettes, biofuel pellets |
| Wood and Paper Products | Particle boards, bamboo flooring, barrels, basketware, wooden idols and case goods, cork, straw manufactures, pulp, newsprint, cartons, paper products, roofing materials, kites, brochures, leaflets |
| Tobacco | Tobacco leaves |
Items at 18% GST
| Category | Description |
|---|---|
| Apparel and Clothing above Rs. 2,500 | Apparel and accessories (knitted or crocheted or non-knitted, above Rs. 2,500 per piece); made-up textile sets (above Rs. 2,500 per piece); flexible bulk containers; waterproof footwear (rubber or plastic uppers); footwear with rubber, plastic, leather or textile uppers; other footwear and parts (uppers, in-soles, heel cushions, gaiters, leggings) |
| Hats and Headgear | Hat forms and hoods (felt or plaited, unblocked, untrimmed); hats and headgear (plaited or assembled, lined or trimmed); knitted, crocheted or felt and lace headgear; headbands, linings, hat foundations, peaks and chinstraps |
| Hair and Wig Products | Artificial flowers and foliage; wool or animal hair prepared for wigs; wigs, false beards, eyelashes, eyebrows, hair switches (human, animal or textile); unspecified hair articles |
| Raw and Semi-Finished Metals | Pig iron, ferro-alloys, direct reduced iron, ingots, semi-finished metal products, metal scrap, granules and powders |
| Rolled and Formed Metal Products | Flat-rolled products; bars, rods, angles, shapes, sections and wire made from iron, steel, stainless steel, alloy steel, copper or aluminium |
| Tubes, Pipes and Fittings | Tubes, pipes and hollow profiles with fittings (couplings, elbows, sleeves) for all base metals |
| Structural and Large Containers | Sheet piling, track materials, bridges, towers, frameworks, tanks (above 300 litres), containers, drums, casks, cans (up to 300 litres) and gas cylinders |
| Wires and Cables | Stranded wire, ropes, cables, plaited bands, barbed and twisted wire, wire cloth, grills, netting, fencing and expanded metal |
| Fasteners and Small Metal Parts | Chains, anchors, nails, screws, bolts, nuts, rivets, washers, cotter pins, staples and springs |
| Hand Tools and Cutlery | Hand tools (saws, files, pliers, spanners, wrenches); clamps; anvils; tool sets and dies; knives, razors, blades, scissors, shears, hair clippers, manicure and pedicure sets, spoons, forks, ladles and table cutlery |
| Household Appliances and Fixtures | Stoves, cookers, barbecues, radiators, air heaters, hot air distributors, pot scourers, sanitary ware and cast iron articles |
| Metal Hardware and Fittings | Locks, padlocks, keys, clasps, furniture fittings, hinges, brackets, door closers, safes, filing cabinets, stationery clips and fittings, metal seals, stoppers, caps, nameplates, letterings, electrodes and flux products |
| Dyes, Pigments and Paints | Dyes, pigments, paints, varnishes, printing and writing inks, pesticides (non-bio), solvents, thinners, extinguishing compounds, oils, fragrances, additives, biodiesel (non-OMC) |
| Personal Care and Beauty | Perfumes, cosmetic and skincare products, deodorants, bath and hair products (excluding specified oils and shampoos), detergents, polishes, creams and dental wax compounds |
| Pharmaceuticals and Protein Products | Casein and protein derivatives, glues, enzymes, peptones, culture media, albumins, whey proteins for industrial and pharmaceutical use |
| Ceramics (Refractory and Technical) | Refractory ceramic materials (bricks, nozzles, crucibles, lab ware) made of siliceous, alumina or similar compositions |
| Ceramics (Building and Structural) | Tiles, chimney pots, pipes, conduits, architectural ornaments, gutter fittings, paving blocks, hearth and wall coverings |
| Ceramics (Sanitary and Domestic) | Ceramic fixtures including sinks, basins, baths, urinals, bidets, troughs and other domestic containers |
| Stone and Aggregates | Building and decorative stones, flagstones, mosaic cubes, coloured granules, slates, millstones, grinding stones and abrasives |
| Insulation and Composites | Rock wool, expanded clays, asphalt and bitumen materials, plaster and cement-bound fiber panels and composite boards |
| Cement and Concrete | Cement and concrete articles (reinforced and unreinforced), asbestos-cement goods, fibre cement, friction materials, mica-based and carbon products |
| Electrical and Electronic Motors | Motors, generators, transformers, electromagnets, magnetic devices and all related parts and batteries (primary and storage) |
| Home and Industrial Appliances | Household and industrial electrical appliances including vacuum cleaners, heaters, ignitions, lighting, wipers, furnaces, ovens, welding machines, sound and transmission devices |
| Audio, Visual and Recording | TVs, cameras, recorders, monitors, projectors, microphones, speakers, transmitters, radars, CCTV systems, alarms |
| Electrical Components and Wiring | Electrical circuits, switches, fuses, lamps, semiconductors, integrated circuits, LEDs, wires, insulators, fittings and e-waste |
| Explosives and Propellants | Propellant powders, explosives, detonators, fireworks, pyrotechnics, flares and lighter fuels |
| Food and Spirits | Artificial honey, ethyl alcohol (non-OMC), industrial spirits, vinegar and acetic acid substitutes |
| Fuel and Petroleum Products | Coal, lignite, petroleum oils, tar, gasoline, propane, butane, waxes, coke, bitumen, shale, tar sands and fuel residues |
| Chemicals (Inorganic) | All inorganic chemicals not otherwise covered under reduced GST schedules |
| Chemicals (Organic) | All organic chemicals other than gibberellic acid and natural menthol products |
| Glass (Raw and Sheets) | Unworked glass; rods, tubes, sheets (cast, rolled, drawn, float or polished) |
| Glass (Structural) | Safety and insulating glass, mosaics, leaded lights, foam panels |
| Glass (Containers and Industrial) | Bottles, jars, flasks, closures, lamp bulbs and cathode ray components |
| Glass (Mirrors and Optical) | Mirrors (framed or unframed), optical glass, lenses, watch glasses and signalling glass |
| Glass (Decorative and Laboratory) | Domestic, decorative and laboratory glassware; imitation pearls; glass ornaments; fibres and woven glass articles |
| Furniture and Furnishings | Furniture (residential, medical or industrial), bedding, lighting fixtures, prefabricated buildings |
| Toys and Games (Electronic and Entertainment) | Electronic toys, consoles, gaming and amusement equipment, sports and exercise goods, circus or fairground apparatus |
| Writing and Office | Pens, brushes, mops, stationery, markers, stamps, ink pads, office and cleaning sets |
| Miscellaneous Specialty Items | Lighters, spray containers, powder puffs, mannequins, automata, tripods and novelty items |
| Machinery (Engine and Power) | Engines, turbines, reactors, boilers, pumps, compressors, air and vacuum systems |
| Machinery (Heating and Fluid) | Air conditioners, refrigeration, ovens, filters, industrial washing and packaging machines |
| Machinery (Material Handling and Processing) | Cranes, lifts, conveyors, processing, milling, food machinery and related mechanical systems |
| Machinery (Textile and Specialized) | Textile, printing, metal-working and plastic machinery; CNC tools; vending machines; data processing and mineral machinery |
| Machinery (Components and Systems) | Bearings, shafts, gears, gaskets, semiconductor equipment, additive manufacturing systems and e-waste |
| Leather Goods (Bags and Cases) | Travel bags, cases, wallets, purses, holsters, tool bags and other leather containers |
| Leather Goods (Apparel and Other Articles) | Leather clothing, gloves, belts and miscellaneous leather accessories |
| Furs and Fur Products | Raw, tanned or dressed furskins; fur apparel and accessories; artificial furs |
| Organic Materials | Gut, goldbeater’s skin, bladders, tendons and related organic materials |
| Minerals and Ores | Ores (iron, manganese, copper, aluminium, zinc, lead etc.), cement, slags, dross, waste ash residues |
| Construction and Building | Goods and materials used in building or infrastructure projects, including those supplied under works contracts |
| Photography (Unexposed Materials) | Photographic plates, films and paper (sensitized, unexposed); instant print film |
| Photography (Exposed and Chemical Products) | Developed photographic materials, cinema film and photographic chemicals |
| Plastics (Polymers and Products) | Polymers, resins, plastic products, pipes, fittings, sheeting, packaging, kitchenware and woven and non-woven bags |
| Rubber (Synthetic and Compounded) | Synthetic and reclaimed rubber, rubber compounds and powders |
| Rubber (Tyres and Tubing) | Vulcanized rubber products, conveyor belts, tyres, retreads, tubes and treads |
| Rubber (Apparel and Hygiene) | Rubber apparel, gloves, hygienic containers and ebonite products |
| Watches and Clocks | Watches, clocks (all types), time recorders, switches and precision timers |
| Watch and Clock Parts and Cases | Movements, cases, bands, straps and accessories for watches and clocks |
| Musical Instruments and Accessories | Musical instruments (string, wind, percussion, electric), music boxes, tuning accessories and metronomes |
| Weapons and Ammunition | Firearms, explosives, swords, bayonets, grenades, missiles and weapon components |
| Optical and Precision Instruments | Optical instruments (binoculars, microscopes, telescopes, lasers, cameras) and precision lab and measuring equipment |
| Measuring and Analysis Instruments | Gauges, thermometers, analyzers, meters, detectors, control and calibration devices and parts |
| Project and Lab Equipment | Industrial project machinery, lab equipment, chemicals and dutiable specialized apparatus |
| Tobacco Products | Cigarette filter rods |
| Nicotine Products | Nicotine inhalation and cessation products (patches, oral, transdermal, other) |
| Rail Transport and Components | Locomotives, rail coaches, wagons, rail parts and fittings, signalling gear, refrigerated transport containers |
| Road Vehicles | Vehicles (cars, buses, motorcycles, goods carriers, SPVs, hybrids), chassis, trailers and parts |
| Aircraft and Watercraft | Aircraft, parachutes, aircraft parts, vessels, canoes, boats and floating structures |
| Wood and Wood Products | Rough or shaped wood, plywood, fibre boards, joinery, cork, flooring, framing |
| Pulp and Paper Products | Pulp and paper (all grades: tissue, kraft, coated, carbon, cigarette, wallpaper), stationery, printed items and promotional materials |
Items at 40% GST
| Category | Description |
|---|---|
| High-Sugar and Carbonated Beverages | Sugared or sweetened aerated waters; flavoured non-alcoholic drinks; other unspecified non-alcoholic beverages; caffeinated beverages; carbonated fruit drinks and fruit juice beverages |
| Betting, Casinos and Gaming | Activities including betting, casinos, gambling, horse racing, lotteries and online gaming (actionable claims) |
| Firearms | Revolvers and pistols |
| High-Performance Vehicles | Motorcycles with engine capacity over 350cc; passenger cars excluding specified models; hybrid spark-ignition vehicles with engine over 1200cc or length over 4000mm; hybrid diesel vehicles with engine over 1500cc or length over 4000mm; yachts; pleasure vessels |
Items at Other Niche Rates
| Category | Description | GST Rate |
|---|---|---|
| Pan masala | Pan masala | 28% |
| Tobacco products | Unmanufactured tobacco, tobacco refuse, cigars, cheroots, cigarillos, cigarettes, manufactured tobacco, reconstituted tobacco, extracts, essences, biris, tobacco and reconstituted tobacco inhalation products (non-combustion), tobacco and nicotine substitute inhalation products (non-combustion) | 28% |
| Precious metals and gemstones | Pearls (natural or cultured, unstrung), precious stone dust and powder, silver, silver-plated forms, gold, gold-plated forms, platinum, precious metal clad base metals, precious metal waste and scrap | 3% |
| Jewellery and articles | Jewellery and parts, goldsmiths and silversmiths wares, other precious metal articles, pearl articles, imitation jewellery, coins | 3% |
| Diamonds and precious stones | Rough and sawn diamonds, precious stones (non-diamond), semi-precious (unstrung), synthetic and reconstructed stones (unstrung), synthetic diamonds | 0.25% |
CBIC Notifications Implementing GST 2.0
| Notification | Description | Summary |
|---|---|---|
| 09/2025-CTR dated 17 September 2025 | Revised tax rates and schedules | Supersedes 01/2017-CTR; notifies GST rates by new schedules — Schedule I (5%), Schedule II (18%), Schedule III (40%), Schedule IV (3%), Schedule V (0.25%) and Schedule VI (1.5%), Schedule VII (28%); effective 22 September 2025 |
| 10/2025-CTR dated 17 September 2025 | Revised exemption list for goods | Supersedes 02/2017-CTR; expands exemptions for agricultural, food, health and education items; defines terms such as pre-packaged and labelled and unit container; effective 22 September 2025 |
| 11/2025-CTR dated 17 September 2025 | GST rate for petroleum and coal bed methane operations | Rate changed from 12% to 18%; effective 22 September 2025 |
| 12/2025-CTR dated 17 September 2025 | Amendment to used motor vehicles | Updates reference for used motor vehicles from old schedule to updated Schedule II or III of 09/2025; effective 22 September 2025 |
| 13/2025-CTR dated 17 September 2025 | Reduced GST rate on handmade items and handicrafts | 5% GST for woodcraft, embroidery, coir, pottery, glassware, bamboo and cane crafts, paintings, sculptures etc.; 3% for silver filigree work, handmade imitation jewellery and natural seed and bead jewellery; effective 22 September 2025 |
| 14/2025-CTR dated 17 September 2025 | GST rate for bricks and tiles | 12% for fly ash bricks, building bricks, fossil bricks, earthen and roofing tiles; effective 22 September 2025 |
| 15/2025-CTR dated 17 September 2025 | Comprehensive service rate changes | New rate 18% for transport services, courier and postal services, local delivery through e-commerce operators, professional and business services, manufacturing job work (previously 12%); new rate 5% for tailoring, job work for food, textiles, printing educational materials, brick manufacturing, handicrafts, beauty and cleaning services; new rate 1.5% for job work on diamonds; effective 22 September 2025 |
| 16/2025-CTR dated 17 September 2025 | Exemptions to services | Exempts individual health and life insurance and reinsurance; amends definition of GTA to exclude local delivery by or through e-commerce operators; effective 22 September 2025 |
| 17/2025-CTR dated 17 September 2025 | Reverse charge on local delivery by e-commerce operator | E-commerce operator to pay GST under RCM on local delivery services except where the supplier is liable for mandatory GST registration under Section 22(1); effective 22 September 2025 |
What Businesses Must Do Now
Update billing software immediately. The 12% slab has been abolished for most goods. Any invoice issued with 12% GST after September 22, 2025 is incorrect under law and attracts penalties under Section 122 of the CGST Act.
Review HSN code classifications. With goods moving between slabs, all HSN code to rate mappings must be reviewed and updated. Using the wrong rate after September 22, 2025 attracts penalties.
Renegotiate B2B contracts. Goods that moved from 12% to 18% require revision of existing contracts to account for the increased tax component.
Update invoice series. Document series for all invoices, debit notes and credit notes must be newly numbered from April 1, 2026.
File LUT for FY 2026-27. Businesses engaged in exports must file a new Letter of Undertaking for FY 2026-27 before generating any export invoice from April 1, 2026.
⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax advice. Tax laws change frequently — consult a CA or tax professional before making decisions.
Written & Reviewed by
Diksha ChawlaFinancial Educator & Content Creator | FinLecture.in
Diksha covers Indian income tax, mutual funds, ITR filing, and personal finance. FinLecture content is cross-checked against official government portals and SEBI/AMFI guidelines.
