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GST simplified: 18% rate applies to these products under new reforms — Check the surprises for you

GST simplified: 18% rate applies to these products under new reforms — Check the surprises for you

Union Finance Minister Nirmala Sitharaman during the GST Council meeting. Photograph: (ANI)

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After a daylong meeting in Delhi on Wednesday, the GST Council approved a two-tier tax rate structure of 5% and 18% scrapping the 12% and 28% brackets. The move leaves three brackets, including, 5%, 18% and 40.

The GST Council on Wednesday approved a two-tier rate structure of 5% and 18 %, giving relief from previous complex tax structures, scrapping the 12% and 28% brackets and leaving just three brackets, including, 5%, 18% and 40%. The decision was taken following a long day of the GST Council meeting held in Delhi, which is set to be implemented from September 22.

In response to the new regime, the Union Finance Minister Nirmala Sitharaman stated that every decision was taken unanimously, with no disagreement from any state. "We've reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation cess," Finance Minister Nirmala Sitharaman announced.

“These reforms have been carried out with a focus on the common man. Every tax on the common man's daily use items has gone through a rigorous review, and in most cases, the rates have come down drastically,” she added.

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GST new rates 2025: Items included under 18%

  • Two-wheelers (bikes/scooty ≤350cc)
  • Small cars (≤1200cc petrol / ≤1500cc diesel; ≤4m)
  • Three-wheelers (autos)
  • Passenger vehicles (10+ seats)
  • Engine parts, igniGon, pumps (vehicle)
  • Bicycles & bicycle parts
  • Auto Components
  • Home Building & Materials
  • Cement
  • Marble/TraverGne blocks, Granite blocks, Sand-lime bricks
  • ParGcle boards from agri-waste (bagasse, rice husk, jute, sisal etc.)
  • Bamboo flooring / joinery
  • Packing cases & pallets (wood)
  • Consumer Electronics & Appliances
  • Television sets (LCD/LED) (> 32’)
  • Monitors & Projectors (non-TV
  • Air-condiGoners
  • Dishwashers
  • Solar water heater & systems, Solar cookers
  • Toys, Sports & Handicrafts
  • Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys]
  • Wooden/metal/texGle dolls & toys (Channapatna, Thanjavur, Sawantwadi etc.)
  • Board games (Ludo/Carrom/Chess/Playing cards)
  • Sports goods other than arGcles and equipment for general physical exercise
  • Handicraf idols & statues (wood/stone/metal) and lamps (incl. panchloga)
  • Brass/Copper/Aluminium artware
  • PainGngs, sculptures

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Vinay Prasad Sharma

Vinay Prasad Sharma is a Delhi-based journalist with over three years of newsroom experience, currently working as a Sub-Editor at WION. He specialises in crafting SEO-driven natio...Read More