GST Rates in India 2025 - List of Goods and Service Tax Rates, Slab & Revision

Goods and Services Tax (GST) rates in India are crucial for every segment of the economy. Every time the GST Council meets, Indian enterprises and consumers alike are watching out for the next set of GST rate changes. India’s GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.

Latest Updates

1. The most awaited 56th GST Council meeting happened 3rd September 2025. The council rationalised the GST rate structure from four GST slabs (5%, 12%, 18%, 28%) to a simplified structure:

• Standard rate: 18% - Applicable to most goods and services
• Merit rate: 5% - For essential items and priority sectors
• Demerit rate: 40% - Selective application to sin goods and luxury items

2. GST on individual health & life insurance has been made exempted.

3. GST on dairy products, 33 lifesaving drugs and educational essentials have been brought down to Nil rate.

4. GST on daily essentials, agriculture goods, health care equipment have been brought down to 5%.

5. GST on electronic appliances, small cars and motor cycles (≤350cc) have been brought down to 18%.

6. GST on sin goods such as pan masala, aerated waters, caffeinated beverages, carbonated beverages of fruit drinks / with fruit juice has been increased to 40%.

7. All these GST rate changes will be effective from 22nd Sept 2025 except tobacco products.T

These changes were recommended by the GST Council and will be formally implemented through official government notifications. 

This GST rates in India 2025 guide breaks down GST rate structures, latest changes, and item-wise tax lists to help you stay informed and compliant. 

GST Rates Meaning 

GST rate in India means a tax percentage applied on the sale of goods or services. Therefore, GST rate is prevalent under the CGST, SGST and IGST Acts. CGST GST rate and SGST GST rate would both be half of IGST GST rate. 

In simple words, every business registered under GST must raise invoices with GST amounts charged on the taxable supply value. These GST amounts are derived by multiplying a tax percentage with taxable supply value. Such as percentage rate refers to the GST rate. For instance, in the example where GST of Rs.1,800 is charged on taxable value of Rs.10,000. Here, 18% is the GST rate. 

GST Rate Changes from 56th GST Council Meeting

The next gen GST reforms represent the most comprehensive GST rate overhaul since the introduction of GST, directly impacting financial strategies, cash flows, and competitive positioning.

GST rate cuts-

GST rate hikes-

* To come into effect at a later date (not from 22nd Sept, 2025) through a notification, after the loan and interest obligations under the compensation cess are discharged. 

Types of GST Rates and GST Rate Structure in India

The GST rate structure in India has been rationalized following the 56th GST Council meeting, introducing GST 2.0 reforms. The revised primary GST rates now consist mainly of two slabs: 5% and 18%, replacing the earlier 0%, 5%, 12%, 18%, and 28% slabs. A higher 40% rate is applied to select luxury and sin goods, while a few niche rates like 3% and 0.25% continue to exist. 

Also, the composition taxable persons must pay GST at lower or nominal rates such as 1.5% or 5% or 6% on their turnover. There is a concept of TDS and TCS under GST as well, whose rates are 2% and 0.5% respectively (prior to 9th July 2024, it was 1%).

Further, the GST law levies cess in addition to the above GST rates list on the sale of some items such as cigarettes, tobacco, aerated water, petrol, and motor vehicles, rates widely varying from 1% to 204%.

The GST rate structure for some of the commonly-used consumable products is given in the below table. For more items, type in the item you wish to know the GST rate of by visiting our HSN code & GST rates finder.

List of Nil Rated and Exempt Items 

What are the GST Rates in India 2025?

In 2025, enterprises can expect significant GST rate rationalisation measures by the GST Council. The GoM on Rate Rationalisation as well as the Fitment Committee continues to study the possibilities of bringing down the GST rate slabs to a fewer by merging the rates, inverted tax corrections, and GST exemptions. 

GST rates in 2025

The CBIC notified GST rates in 2025 based on outcome of the 55th GST Council meeting. Following are the notifications and recent changes in GST rates in 2025-

1. CGST rate notification 1/2025 with effect from 16th January 2025

• Fortified Rice Kernel (FRK) bearing HSN 1904 now attracts 5% GST rate.
• 'Pre-packaged and labelled' is defined in the original CGST rate notification 1/2017.

2. CGST rate notification 2/2025 with effect from 16th January 2025

• Gene Therapy bearing HSN is now exempted from GST.
• Pre-packaged and labelled' is defined in the original CGST rate notification 2/2017.

3. CGST rate notification 3/2025 with effect from 16th January 2025

Any inputs used in the food preparations put up in unit containers and intended for free distribution for ICDS, will also attract conditional 5% GST rate. It must be with respect to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government.

4. CGST rate notification 4/2025 with effect from 16th January 2025

GST rate of 18% GST attracts instead of 12% on the marginal value for sale of old and used Electronically operated vehicles (EVs) at par with other vehicles.

5. CGST rate notification 5/2025 with effect from 1st April 2025

• The definition of ‘Declared tariff’ is removed
• A new definition for ‘Specified premises’ for a financial year is added-
  • A specified premises is either a hotel accomodation that charged over Rs.7,500 per unit per day in the previous financial year or 
  • An existing hotel accomodation that voluntarily declared itself as such within the given time frame 1st April-31st March of previous financial year through a declaration or
  • A new hotel accomodation that applies for GST registration and files a declaration within 15 days of receiving the registration acknowledgment, declaring itself as such.
• New delaration formats are added such as the ‘Opt-in declaration’ for registered person or person applying for registration, and ‘Opt-out declatation’. 

6. CGST rate notification 6/2025 with effect from 16th January 2025

• Approved skill training partners of NSDC are exempted from GST (Earlier was 18% GST)
• Insurance services provided by the Motor Vehicle Accident Fund, constituted under section 164B of the Motor Vehicles Act,1988 (59 of 1988), against contributions made by insurers out of the premiums collected for third party insurance of motor vehicles, stands exempted.
• ‘Print media’ will be removed from list of explanations from 1st April 2025 and ‘Insurer’ is defined in the original CGST rate notification 12/2017.

7. CGST rate notification 7/2025 with effect from 16th January 2025

• If a service is provided by a body corporate (i.e., a company, LLP, or any incorporated entity), it will no longer fall under this reverse charge provision. Only individuals or unincorporated entities shall be covered for RCM provisions. 
• If a registered person has opted for the composition scheme, they are now excluded from the applicability of reverse charge provisions.

8. CGST rate notification 8/2025 with effect from 1st April 2025

Specified premises definition has been modified to refer it back to the new definition given under the CGST Rate notification 5/2025 above.

GST Rate Changes at 55th GST Council Meeting

The 55th GST Council meeting took place on 21st December 2024 where some items underwent revisions in GST rates in 2024, as given below. These GST rate changes are yet to be notified on 3rd January 2025. Changes in GST rates are as follows-

GST Rate Changes at 54th GST Council Meeting

In 2024, at the 54th GST Council meeting, quite a few rate revisions were announced. More are expected in the upcoming meetings. Some were done to correct the prevailing inverted tax structure, whereas a few were revised for revenue augmentation.

The following sections cover the summarised details of changes to GST rates in India with the new GST rates 2024.

GST Rate Changes at 54th GST Council Meeting

GST Rate Changes at 53rd GST Council Meeting

The folowing table summarises the GST rate revisions:

GST Rate Changes at 52nd GST Council Meeting

GST Rate changes on goods

• Millet flour in powder form is blended with any other atta with 70% composition of millets under (HS1901) to attract 0% GST if sold loose and 5% GST if sold pre-packaged and labelled.
• GST on molasses has been reduced from 28% to 5%.
• GST on ENA for industrial use to attract 18% by a separate tariff HS code. 
• 5% GST on imitation zari thread or yarn made out of metallised polyester film or plastic film (HS 5605) without refund due to inversion.

GST Rate changes on services 

• GST exempted on water supply services, public health, etc., supplied to the government authorities, including composite services with up to 25% of the above services. 
• A conditional IGST exemption is given to a foreign flag and foreign going vessel when it converts to coastal run subject to its reconversion in six months.
• GST exempted on pure and composite services to Central/State/UT governments and local authorities for Panchayat/Municipality functions.
• Bus operator companies selling through e-commerce are excluded from CGST Section 9(5) to allow them to pay GST and avail ITC claims. 
• All services provided by Indian Railways will be subjected to forward charge, with ITC available for discharging liabilities.

GST Rate Changes at 50th GST Council Meeting

Recommendations with regard to GST on goods

• The GST Council took a decision to reduce the GST rates on the following goods:
  • Uncooked /unfried snack pellets reduced from 18% to 5%
  • Fish soluble paste reduced from 18% to 5%
  • Imitation zari threads/yarn reduced from 12% to 5%
  • LD slag to be at par with blast furnace slag and fly ash and reduced from 18% to 5%
• There is an IGST exemption on Dinutuximab (Quarziba) medicine when imported for personal use, as well as medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases, and FSMP when imported by Centres of Excellence for Rare Diseases or any person or institution on recommendation of any of the listed Centres of Excellence.
• It was clarified that the supply of raw cotton by agriculturists to cooperatives, including kala cotton, is taxable under reverse charge mechanism. 
• It was further decided to regularise issues relating to past periods on an “as is basis” with regard to 
  • Raw cotton, 
  • Matters relating to trauma, spine and arthroplasty implants (for the period prior to 18.07.2022), 
  • Matters relating to dessicated coconut (for the period 1.7.2017 to 27.7.2017),
  • GST on plates and cups made of areca leaves (prior to 01.10.2019), and 
  • GST on biomass briquettes (for the period 01.7.2017 to 12.10.2017)
• It was decided to amend Entry 52B in the compensation cess notification to include all utility vehicles, by whatever name called, provided they meet the following parameters- 
  • Length exceeding 4000 mm, 
  • Engine capacity exceeding 1500 cc, and 
  • A ground clearance of 170 mm and above (in an unladen condition)
• It was decided that on pan masala, tobacco products etc, where it is not legally required to declare the retail sale price, the ad valorem rate applicable on 31st March 2023 may be notified for the levy of compensation cess.
• It was decided to include RBL Bank and ICBC bank in the list of specified banks for which an IGST exemption is available on the imports of gold, silver, or platinum.

Recommendations with Regard to GST on Services

• It was decided that a GST exemption would be provided on satellite launch services supplied by ISRO, Antrix Corporation Limited and New Space India Limited (NSIL), and may be extended to such services supplied by other private organisations too.
• As a trade-friendly measure, GTAs will not be required to file a declaration for paying GST under forward charge every year. If the option has been exercised for a particular financial year, it will be deemed to have been exercised for the next and future financial years unless a declaration is filed to revert that decision. The deadline to exercise this option will now be 31st March of the preceding financial year instead of 15th March.
• It was clarified that services supplied by a director of a company to the company in their personal or private capacity will not be taxable under RCM.
• It was clarified that the supply of food and beverages in cinema halls is taxable as a restaurant service if they are supplied by way of or as part of a service and supplied independently of the cinema exhibition service. If clubbed together and the same satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to the service of exhibition of cinema, the principal supply.

GST Rates for Goods and Services with HSN Chapters

GST rates & HSN codes according to the HSN chapters, please check the below table:

GST rates in not just compliance but helps you, whether as a manufacturer, retailer, service provider or consumer, to see what's coming ahead! 

Further Reading on GST Rates Slab

• Structure of GST in India
• TCS & TDS rates under GST
• GST rates for Composition dealers
• GST Calculator