Old vs New GST Rates 2025: Latest Rates List & Key Changes Explained
Since the introduction of the GST in 2017, the indirect taxation system is undergoing the most significant changes following the recommendations in the 56th GST Council Meeting, held on 3rd September 2025. With effect from the 22nd September 2025, the tax structure will be simplified and transformed into a 2-slab structure from a complex 4-slab system. This article compares old vs new GST rates and discusses new gst rates list 2025 for the top 100 products.
GST Rate Structure in India
Currently, the GST rate structure is characterised by a 4-slab system along with compensation cess for select goods and services, and a few special rates. From 22nd September 2025, the GST 2.0 framework will overhaul the existing structure to 2 major slabs. In addition, a flat 40% rate will be applicable on a few “sin” food items, intoxicants, luxury items and “sin” services.
| Before 22nd September 2025 | After 22nd September 2025 |
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New GST vs Old GST Rates: Top 100 Products
Goods and services | Previous GST Rate (%) | New GST Rate (%) | Key Remarks/Conditions |
Daily Essentials & Food Products | |||
| Hair Oil, Shampoo, Toothpaste | 18 | 5 | Significant reduction for household goods |
| Toilet Soap Bar, Shaving Cream | 18 | 5 | Significant reduction for household goods |
| Butter, Ghee, Cheese | 12 | 5 | Major reduction for dairy products |
| Refined sugar | 12 | 5 | |
| Pre-packaged Namkeens, Bhujia | 12 | 5 | |
| Chocolates | 18 | 5 | Significant reduction |
| Pasta, Noodles, Couscous | 12 | 5 | |
| Biscuits, Pastry, Wafers | 18 | 5 | Major reduction |
| Corn Flakes, Bulgar Wheat | 18 | 5 | Major reduction |
| Jams, Jellies, Marmalades | 12 | 5 | |
| Extruded savoury products | 12 | 5 | |
| Sauces and seasoning | 12 | 5 | |
| Soup and broth | 12 | 5 | |
| Citrus fruits, Other dried fruits | 12 | 5 | |
| Malt, Starches | 18/12 | 5 | |
| Pig, poultry, bovine fats | 12 | 5 | |
| Fish and marine mammal oils | 12 | 5 | |
| Yeast and baking soda | 12 | 5 | |
| Preserved meat and fish | 12 | 5 | |
| Lard stearin, lard oil, tallow oil | 12 | 5 | |
| Cocoa powder | 18 | 5 | Significant reduction |
| Cocoa butter | 18 | 5 | Significant reduction |
| Soya milk drinks, Plant-based milk | 12/18 | 5 | |
| Soya bari (textured vegetable protein) including made of pulses | 12 | 5 | |
| Beverages containing milk | 12 | 5 | |
| Drinking water (20L bottles) | 12 | 5 | |
| Mineral, aerated, unflavoured waters | 18 | 5 | |
| Roti, chapathi, khakhra, Pizza bread | 5 | Nil | Exemption from GST |
| Pre-packaged paneer | 5 | Nil | Exemption from GST |
| Unbranded milk, curd, eggs | 0 | 0 | Unchanged |
Healthcare & Medical | |||
| Thermometer | 18 | 5 | Significant reduction |
| Medical Grade Oxygen | 12 | 5 | |
| Diagnostic Kits & Reagents | 12 | 5 | |
| Glucometer & Test Strips | 12 | 5 | |
| Corrective Spectacles | 12/28 | 5 | Significant reduction for a few classes |
| Medicaments (multi-ingredient, Ayurvedic, etc.) | 12 | 5 | |
| Anaesthetics, Potassium Iodate, Iodine | 12 | 5 | |
| Medicinal hydrogen peroxide | 12 | 5 | |
| Animal blood, antisera, toxins | 12 | 5 | |
| Diabetic food | 12 | 5 | |
| Agalsidase Beta, Imiglucerase, Eptacog alfa | 5 | Nil | Complete exemption |
| 33 specified drugs | 12 | Nil | Complete exemption |
| Individual Health & Life Insurance | 18 | Nil | Complete exemption |
Automobiles & Transportation | |||
| Small Cars (Petrol ≤1200cc, Diesel ≤1500cc) | 28 | 18 | Significant reduction |
| Motorcycles (≤350cc) | 28 | 18 | Significant reduction |
| Three wheelers | 28 | 18 | Significant reduction |
| Motor Vehicles for transport of goods | 28 | 18 | Significant reduction |
| Road Tractors (>1800cc for semi-trailers) | 28 | 18 | Significant reduction |
| Drones (all types) | 5/18/28 | 5 | Uniform rate applied |
| Multimodal transport (non-air) | 5 | 5 | With restricted ITC |
| Multimodal transport (with air) | 18 | 18 | With full ITC |
| Local delivery services | Varies | 18 | Standardized rate for E-Commerce |
| Vehicle rental (without operator) | Varies | 18 | Same rate as the vehicle |
Electronics & Durables | |||
| Air Conditioners | 28 | 18 | Significant reduction |
| Television (>32") | 28 | 18 | Significant reduction |
| Monitors & Projectors | 28 | 18 | Significant reduction |
| Dish Washing Machines | 28 | 18 | Significant reduction |
| Computers, Printers | 18 | 18 | Unchanged |
Education & Stationery | |||
| Maps, Charts & Globes | 12 | Nil | Complete exemption |
| Pencils, Sharpeners, Crayons | 12 | Nil | Complete exemption |
| Exercise Books & Notebooks | 12 | Nil | Complete exemption |
| Eraser | 5 | Nil | Complete exemption |
Agriculture & Raw Materials | |||
| Tractor Tyres & Parts | 18 | 5 | Significant reduction |
| Tractors | 12 | 5 | |
| Drip Irrigation System & Sprinklers | 12 | 5 | |
| Specified bio-pesticides | 12 | 5 | |
| Agricultural, Horticultural Machinery | 12 | 5 | |
| Coal, Briquettes, Solid fuels | 5 | 18 | Significant hike |
| Lignite, Peat | 5 | 18 | Significant hike |
| Cement | 28 | 18 | Significant reduction |
| Sand-lime bricks | 12 | 5 | |
| Other bricks | 6/12 | 6/12 | Composition scheme with/without ITC |
| Sulphuric acid, Nitric acid, Ammonia | 18 | 5 | Significant reduction |
| Menthol derivatives | 12 | 18 | Rate hike |
Luxury & Sin Goods | |||
| Flavoured/Sweetened waters | 28 | 40 | Major hike, cess subsumed |
| Carbonated fruit beverages | 28 | 40 | Major hike, cess subsumed |
| Caffeinated beverages | 28 | 40 | Major hike, cess subsumed |
| Luxury/Premium Cars (>1200cc petrol, >1500cc diesel) | 28 + cess | 40 | Major hike, cess subsumed |
| Motorcycles (>350cc) | 28 + cess | 40 | Major hike, cess subsumed |
| Yachts & Personal Aircraft | 28 + cess | 40 | Major hike, cess subsumed |
| Betting, Online Gaming, Casinos | 28 | 40 | Major hike |
Miscellaneous | |||
| Pens, Packaging containers | 12 | 5 | |
| Vegetable wax, beeswax | 18 | 5 | Significant reduction |
| Railway goods and parts | 12 | 5 | |
| Handbags, purses, jewellery boxes | 12 | 5 | |
| Idols of wood, stone, metal | 12 | 5 | |
| Umbrellas | 12 | 5 | |
| Scrap and polyurethanes | 5 | 5 | Unchanged |
| Glycerol (crude) | 18 | 5 | Significant reduction |
About the Author
Prajwal Magaji
Aspiring Chartered Accountant with 3+ years of hands-on experience in income tax and GST. Having handled everything from the likes of return filings to tax assessments. I'm now bringing that experience into the world of content writing, aiming to make tax less intimidating and more engaging. Read more