Revised GST Slab Rates in India F.Y. 2025-26 by Council
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20-Sep-2025, 04:10 pm 51 Views
Revised GST Slabs in India
GST is the most significant tax reform in the country. It unified the taxation structure and replaced the multiple indirect taxes of the previous regime. The GST Council meets regularly to review and revise GST rates on various goods and services.
In the 56th GST Council meeting held on September 3, 2025, a major overhaul was approved. The Council simplified the structure by reducing it to two main slabs, 5% and 18% along with a new 40% slab for luxury and sin goods. This move aims to bring clarity, reduce complexity, and ease compliance for businesses and consumers.
The finance minister, Nirmala Sitharaman, along with the panel of ministers, also emphasised merging overlapping slabs and ensuring affordability for essential items
56th GST Council Meeting Update
In the 56th GST Council meeting, the central government announced the removal of 12% and 28% GST rates and shifted several goods to the 5% and 18% slabs to provide relief to consumers.
Next-gen GST Reforms
Effective from September 22, 2025, the new GST structure will make several essential items cheaper for households and rationalise rates on automobiles, appliances, and other consumer goods. Under the revised structure:
- 5% slab will cover essentials like food products, medicines, milk-based items, EVs, and insurance.
- 18% slab will apply to standard goods like electronics, cement, vehicles, and apparel.
- 40% slab will be imposed on luxury and sin goods such as aerated drinks, and premium cars.
| Key Items | Current GST Rate | GST Rate From 22nd September 2025 |
|---|---|---|
| Business Class Travel | 12% | 5% |
| Hotel Below INR 7,000 | 12% | 5% |
| Petrol/Diesel Cars (<1200cc) | 28% + 1-3% Cess | 18% |
| Motorcycle Below <350cc | 28% | 18% |
| Auto Components | 18-28% | 18% |
| Footwear Below INR 1000 | 12% | 5% |
| Clothes Above INR 1000 | 12% | 5% |
| Ghee | 12% | 5% |
| Health Insurance | 18% | 5% or Nil |
| Life Insurance | 18% | 5% or Nil |
| Medical Equipment | 12% | 5% |
| Cement | 28% | 18% |
| Tractor | 12% | 5% |
| Water Sprinkler | 12% | 5% |
| Air-conditioning machines | 28% | 12% |
| TVs~32 inch | 28% | 12% |
| Ultra-High Temperature (UHT) milk | 5% | Nil |
| Prepackaged and labelled chena or paneer | 5% | Nil |
| Handicrafts | 12% | 5% |
| Other drugs and medicines | 12% | 5% |
| Buses, Trucks and Ambulances | 28% | 18% |
| Gyms, Salons, Barbers, Yoga Centres, etc | 18% | 5% |
| All Auto Parts | 28% | 18% |
Revised GST Slab Rates in India F.Y. 2025-26 by Council
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