In the 56th meeting of the GST Council, the government has made major changes regarding the Goods and Services Tax (GST). Now there will be only two main tax slabs of 5% and 18%, while the earlier 12% and 28% tax slabs have been abolished. This decision will come into effect from 22 September 2025.
This change will not only simplify the tax system, but the general public will get direct relief on everyday things .
New GST Tax Slabs 2025 – Know how much tax will be levied on which
Now there will be only 4 categories:
| Tax Slab | rate | What’s Included |
| 0% | 0% | Life Saving Medicines, Insurance, Milk, Bread, Stationery |
| 5% | 5% | Hair Oil, Shampoo, Toothpaste, Dairy Products, Utensils |
| 18% | 18% | TV, AC, Bike, Cars, Electronic Items |
| 40% | 40% | Pan masala, cigarettes, luxury and harmful items |
0% Tax Slab – Completely Tax Free Items
There will be no GST on the following items:
- 33 Life-Saving Medicines – Medicines for Cancer and Rare Diseases
- Personal Health and Life Insurance Premium
- Stationery Items – Pencil, Notebook, Sharpener, Eraser
- Pre-packed Indian Breads – Roti, Paratha, Bread, Khakhra
- Milk, Cheese, Pizza Bread
Advantage: Direct relief to children, students, patients and middle-class families
5% Tax Slab – Now These Goods Will Be Cheaper
Now only 5% GST will be charged on these items:
- Hair Oil, Shampoo, Toothpaste, Toilet Soap, Toothbrush
- Namkeen, Ghee, Butter, Cheese and Dairy Products
- Utensils, Tableware, Kitchenware
- Spectacles, Thermometers, Diagnostic Kits
- Baby Diapers, Napkins, Milk Bottles
- Agricultural Machines, Tractors and their Parts
Advantage: Reduction in the prices of daily use items
18% Tax Slab – Tax on Mid Range
This slab of GST includes the following items:
- TVs (above 32 inches), LEDs, LCDs, monitors and projectors
- Air Conditioners, Dishwashers, Washing Machines
- Motorcycles (up to 350cc), Cars (up to 1200cc – Petrol, up to 1500cc – Diesel)
- Goods Transport Vehicles, Three-wheelers
Earlier they were taxed at 28%, now 18% tax – that is, reduction in prices.
40% Tax Slab – Luxury & Harmful Goods
The government has put these items in the special tax slab:
- Cigarettes, Pan Masala, Gutkha, Bidi, Tobacco Products
- Aerated Drinks, Caffeinated Beverages, Sugary Soft Drinks
- Motorcycles above 350cc, Private Aircraft, Boats
- Betting, Casinos, Horse Racing, Lottery and Online Gambling
This tax rate has been imposed to keep people away from unhealthy products and luxury expenses.
GST Update 2025: When will the new rates come into effect?
The new GST rates will be applicable across India from 22nd September 2025.
This date is on the first day of Navratri – which will benefit customers before the festive season.
5 Major Benefits of GST Update:
1.0% Tax on Insurance and Life-Saving Medicines
2. Electronic goods like TV, AC, bike cheap
3. Only 5% tax on kitchen and dairy products
4. Kids Stationery Items Now GST Free
5. Relief to farmers and rural industries on equipment
Union Finance Minister Nirmala Sitharaman’s statement:
“GST reforms have been done in the interest of the general public. The system has been simplified and made more transparent by reducing tax slabs. Health, education and agriculture sectors have been kept in focus. ”
FAQs – Frequently Asked Questions (FAQs) about GST Update 2025
Q1. How many slabs are there in GST now?
A: Now there are mainly three slabs – 0%, 5% and 18%, while 40% slab is for specific items.
Q2. Is health insurance tax-free now?
A: Yes, there will be no GST on health and life insurance now .
Q3. How much GST will be levied on TV and AC?
A: TVs larger than 32 inches and all ACs will now attract 18% GST, earlier it was 28%.
Q4. When will the new GST rates be applicable?
A: From 22nd September 2025.
Q5. Will pan masala and cigarettes be expensive?
A: Yes, these will now attract 40% GST.
Conclusion: GST Update 2025 Beneficial for the Common Man
The change in the GST tax slab will make everyday things cheaper and the tax system will be simpler than before. This step of the government has been taken before the festive season so that the common people can buy more and more goods at a lower price.
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