New GST Rates 2025: What’s cheaper, what’s costlier after GST revamp? Check full list here
The Goods and Services Tax (GST) Council, during its 56th meeting that stretched for more than 10 hours on Wednesday, approved a new wave of reforms in the eight-year-old indirect tax regime. Let's have a look at the GST new rates 2025 along with the 18 per cent GST items list.
GST New Rates 2025: What Are the Latest Changes?
Union Finance Minister Nirmala Sitharaman announced on Wednesday (Sep 3) that the GST Council approved a two-tier structure of 5 per cent and 18 per cent, and a special tax of 40 per cent for luxury and sin goods. Sitharaman stated that the decision was taken unanimously and will come into effect from September 22, 2025, with the exception of tobacco products, based on certain conditions.
Full List of Items Getting Cheaper After GST Revision
Union Finance Minister Nirmala Sitharaman said that items that are used by the common man and middle class daily, like milk, paneer, chena, and all Indian breads (roti, paratha), will come under nil tax. She added that items like namkeen, noodles, chocolates, coffee, butter, and ghee were brought from 12/18 per cent, 5 per cent. The finance minister also added that ACs, TVs (all sizes), dishwashers, small cars, and motorcycles ≤350cc were moved from 28 per cent to 18 per cent.
Full List of Items Getting Costlier After GST Revision
After new GST rates list 2025 in India, a 40 per cent slab was applicable on sin and super luxury goods. Those items include paan masala, tobacco, cigarettes, bidis, aerated water, carbonated and caffeinated beverages, as well as luxury items like motorcycles exceeding 350 cc, yachts, and helicopters.
When Will the New GST Rates 2025 Come Into Effect?
The GST Council in its 56th meeting recommended that the GST new rates on services and goods other than cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and beedi be applicable from 22nd September, 2025.
What is the revised GST rate on small petrol, LPG, CNG, or diesel cars?
On all small cars, the GST rate has been reduced to 18% from 28%. For the purposes of GST, small cars mean Petrol, LPG, or CNG cars with engine capacity up to 1200 cc and length up to 4000 mm and Diesel cars with engine capacity up to 1500 cc and length up to 4000 mm.
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