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New GST rates: List of key items shared by government on tax cut

GST rate for daily consumables such as ghee, nuts, and packaged drinking water has been reduced from 12 per cent to 5 per cent.

Updated on: Sep 3, 2025, 23:35:41 IST
By HT News Desk
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Based on the recent GST Council meeting, a significant GST reform has been approved, which includes a new two-slab structure and several rate cuts on a wide range of goods and services. The new tax rates are set to be implemented from September 22, 2025.

A new 40% slab has also been introduced for luxury and "sin" goods under the new GST tax rules. (Representational Photo)
A new 40% slab has also been introduced for luxury and "sin" goods under the new GST tax rules. (Representational Photo)

The key changes involve the removal of the 12% and 28% tax slabs, with most items being shifted to a new 5% or 18% bracket. A new 40% slab has also been introduced for luxury and "sin" goods.

Also read: India delivers GST bonanza for Common Man, new GST rates from 22 September

Here is a summary of the GST rate cuts by category:

Household & Personal Items

From 12% to 5%:

Namkeen, bhujia, mixtures, and other packaged snacks.

Certain footwear and apparel priced up to ₹2,500.

Commonly used items such as pencils, bicycles, umbrellas, and hair pins.

Also read: GST cut: Small cars, under-350cc motorcycles get cheaper; what about bigger ones?

From 18% to 5%:

Personal care items, including hair oil, shampoo, toothpaste, and dental floss.

Processed food items like pasta, instant noodles, cocoa butter, and chocolates.

From 28% to 18%:

Consumer electronics such as certain televisions, washing machines, refrigerators, and air conditioning machines.

Cement.

Automobiles

From 28% to 18%:

Small cars (petrol engines up to 1200cc, diesel up to 1500cc, and length not exceeding 4000mm).

Motorcycles up to 350cc.

Ambulances and three-wheeled vehicles.

Healthcare & Education

Also read: New GST rates: Full list of items that have received rate cut

From 12% or 18% to 5% or Nil:

A wide range of essential medicines and medical devices.

More than 30 cancer drugs, which will now have a nil GST rate.

Medical consumables like spectacles, gauze, bandages, and surgical gloves.

Educational services and materials, including books and learning aids.

Farming & Agriculture

From 12% to 5%:

Agricultural equipment used for soil preparation, such as fixed-speed diesel engines.

Fertilizer inputs like sulphuric acid, nitric acid, and ammonia (cut from 18% to 5%).

Tractor tyres and diesel engines for tractors (cut from 18% to 5%).

 
ABOUT THE AUTHOR
HT News Desk

Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.

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