GST Reforms 2025: Simplified Slabs, Consumer Relief & MSME Empowerment

New Delhi, 3 September 2025 – The 56th GST Council meeting, chaired by Union Finance & Corporate Affairs Minister Nirmala Sitharaman, has introduced Next-Gen GST reforms 2025, marking a transformative shift in India’s tax framework. These reforms aim to simplify GST compliance, enhance consumer affordability, empower MSMEs, and strengthen fiscal federalism. From broad GST rate rationalization to procedural and institutional reforms, these measures provide comprehensive benefits for businesses, consumers, and the economy.

1. Simplified Two-Slab GST Structure with Special De-Merit Rate

In a major simplification move, the GST Council replaced the complex four-tier GST structure (5%, 12%, 18%, 28%) with a streamlined two-slab system:

• Merit rate: 5%

• Standard rate: 18%

• Special de-merit rate: 40% (for sin and luxury goods, including tobacco, pan masala, and luxury cars)

This reform reduces compliance complexity, ensures fairness, and aligns tax rates with the nature of goods and services.

2. Broad GST Rate Reductions Across Goods and Services

Goods GST Rate Cuts

• Essentials: Hair oil, soap, shampoo, toothpaste, toothbrushes, bicycles, tableware, and kitchenware reduced from 12%/18% to 5%.

• Food Items: UHT milk, packaged paneer, Indian breads (roti, paratha) now at 0% GST; packaged foods like namkeen, pasta, instant noodles, chocolates, coffee, ghee, sauces, cornflakes reduced to 5%.

• Durables: Air conditioners, TVs (≤32″), dishwashers, small cars, motorcycles ≤350 cc reduced from 28% to 18%.

• Agriculture & Labour-Intensive Goods: Tractors, harvesters, handicrafts, marble, granite, and leather intermediates now attract 5% GST.

• Cement & Renewable Energy: Cement tax dropped from 28% to 18%; renewable energy devices reduced from 12% → 5%.

• Corrected Inverted Duty Structures: Man-made fibres/yarns, fertilizers, and other essential industrial inputs now have rationalised rates.

• Healthcare & Medicines: 33 life-saving drugs moved to 0%; 3 critical drugs for cancer and severe chronic diseases also at 0%; other medicines at 5%. Medical devices used in surgeries, diagnostics, and veterinary care reduced from 18% → 5%.

Services GST Rate Cuts

• Hotel Accommodation: Rooms ≤ ₹7,500 per night now carry 5% GST (down from 12%).

• Beauty & Wellness: Gyms, salons, barber shops, and yoga centres now taxed at 5% instead of 18%.

These cuts enhance affordability, directly benefiting consumers and the aspirational middle class.

3. Tax Relief for Common Goods: Enhancing Affordability

These GST rate reductions 2025 aim to strengthen purchasing power. Daily-use essentials, packaged foods, and healthcare items are now more affordable, providing significant relief to households across India. This move is expected to boost consumption and economic momentum.

4. GST Exemption for Insurance Policies

All individual life and health insurance policies, including ULIPs, term plans, endowments, family floaters, and senior citizen plans, are now GST-exempt. This reform makes financial security more affordable and accessible for citizens, encouraging insurance penetration.

5. Valuation & GST Structural Reforms

• Tobacco & Sin Goods: Valued on Retail Sale Price (RSP) instead of transaction value; GST and compensation cess continue until obligations are cleared.

• Lottery Rules & Restaurants: Lottery valuation simplified; standalone restaurants cannot claim 18% GST with ITC.

These reforms improve transparency, simplify compliance, and prevent misuse of Input Tax Credit (ITC) benefits.

6. Procedural Facilitation: Provisional Refunds & Export Aid

A landmark procedural reform introduces 90% provisional refunds for inverted duty structures and zero-rated supplies. These refunds will be automatically sanctioned using data analytics and risk evaluation, even before formal amendments to the CGST Act. This reduces liquidity stress for businesses and accelerates trade facilitation.

7. Institutional Reforms: GSTAT Tribunal Goes Live

The Goods & Services Tax Appellate Tribunal (GSTAT) will be operational by end-September 2025, with hearings starting in December 2025. Its Principal Bench will serve as the National Appellate Authority for Advance Ruling, ensuring consistent interpretation and efficient dispute resolution. Backlog appeals must be filed by 30 June 2026.

Impact: MSMEs and businesses will benefit from faster resolution of disputes, reduced litigation costs, and clarity in GST compliance.

8. Implementation Timelines

• GST rate changes for most goods and all services: 22 September 2025

• Tobacco & sin goods: Existing rates until cess-linked obligations are cleared

• Provisional refunds & trade facilitation: Effective from 1 November 2025

This phased approach ensures smooth transition and fiscal stability for state governments.

9. Broader Impact & Expert Insights

• Consumers: Affordable essentials and healthcare lower expenses, increasing disposable income and offering early “Diwali-style relief.”

• Businesses & MSMEs: Simplified GST rules, quicker refunds, and GSTAT improve compliance, resolve disputes efficiently, and boost ease of doing business.

• Agriculture & Rural Sectors: Reduced input costs on fertilisers and machinery support farmers and accelerate rural growth.

• Fiscal Stability for States: A phased rollout ensures steady compensation cess revenue for states.

• Economic Momentum: Lower tax rates and stronger institutional certainty enhance business confidence and drive investments.

• Industry & Infrastructure: GST cuts on cement, renewable energy equipment, and auto components promote infrastructure growth and green manufacturing.

The Federation of Indian Chambers of Commerce & Industry (FICCI) praised the reforms as consumer-centric, growth-oriented, and MSME-friendly, emphasizing transparency, predictability, and competitiveness in labor-intensive sectors.

Revised GST Rates on Goods and Services: HSN-wise Overview

Annexure-I Goods: GST Rate Changes as per 56th GST Council Meeting

S. No.	HSN Code(s)	Description	Old GST Rate	New GST Rate
1	01012100, 010129	Live horses	12%	5%
2	0401	Ultra-High Temperature (UHT) milk	5%	Nil
3	0402 91 10, 0402 99 20	Condensed milk	12%	5%
4	0405	Butter, ghee, butter oil, dairy spreads	12%	5%
5	0406	Cheese	12%	5%
6	0406	Chena or paneer, pre-packaged & labelled	5%	Nil
7	0801	Brazil nuts, dried, shelled or peeled	12%	5%
8	0802	Other dried nuts (almonds, hazelnuts, etc.)	12%	5%
9	0804	Various dried fruits (dates, mangoes, etc.)	12%	5%
10	0805	Dried citrus fruits (oranges, lemons, etc.)	12%	5%
11	0813	Mixtures of dried fruits or nuts (excl. tamarind)	12%	5%
12	1107	Malt, roasted or not	18%	5%
13	1108	Starches; inulin	12%	5%
14	1517 10	Margarine, Linoxyn	18%	5%
15	1518	Sugar with flavouring or colouring, sugar cubes	12%	5%
16	1702	Other sugars (lactose, maltose, glucose, artificial honey, caramel)	18%	5%
17	1704 (sugar boiled confectionery)	Sugar boiled confectionery	12%	5%
18	1704 (other sugar confectionery)	Other sugar confectionery	18%	5%
19	1902	Pasta, noodles, lasagna, couscous, etc.	12%	5%
20	1904 (excl. 1904 10 20)	Corn flakes, bulgar wheat, fortified rice kernel	18%	5%
21	1905	Pastry, cakes, biscuits, wafers, rice paper (excl bread)	18%	5%
22	1905 90 30	Extruded or expanded savoury products	12%	5%
23	1905	Pizza bread	5%	Nil
24	1905 or 2106	Khakhra, chapathi, roti	5%	Nil
25	2001	Vegetables/fruits preserved by vinegar or acetic acid	12%	5%
26	2002	Tomatoes preserved (not by vinegar)	12%	5%
27	2003	Preserved mushrooms/truffles (not by vinegar)	12%	5%
28	2004	Frozen preserved vegetables (non-vinegar, non-heading 2006)	12%	5%
29	2005	Non-frozen preserved vegetables (non-vinegar, non-heading 2006)	12%	5%
30	2006	Glazed or crystallised fruits/nuts/peel	12%	5%
31	2007	Jams, marmalades, purees	12%	5%
32	2008	Other preserved fruits/nuts (e.g., roasted salted ground-nuts, dried squashes)	12%	5%
33	2009	Fruit/nut/vegetable juices (unfermented, no added spirit)	12%	5%
34	2009 89 90	Tender coconut water, pre-packaged & labelled	12%	5%
35	2101 11, 2101 12 00	Coffee extracts, essences, concentrates	18%	5%
36	2101 20	Tea/mate extracts, essences, concentrates	18%	5%
37	2101 30	Roasted chicory and substitutes	12%	5%
38	2102	Yeasts and baking powders	12%	5%
39	2103	Sauces, condiments, mustard, curry paste, mayonnaise	12%	5%
40	2104	Soups, broths, composite food preparations	18%	5%
41	2105 00 00	Ice cream & other edible ice	18%	5%
42	2106	Paratha, parotta, other Indian breads	18%	Nil
43	2106	Texturised vegetable proteins (soya bari), batters	12%	5%
44	2106 90	Namkeens, bhujia, edible ►pre-packaged	12%	5%
45	2106 90 20	Pan masala*	28%	40%
46	2106 90 91	Diabetic foods	12%	5%
47	2106	Other food preparations	18%	5%
48	2201 (20L pack)	Drinking water packed in 20 L bottles	12%	5%
49	2201 (mineral/aerated waters)	Waters (mineral/aerated), no added sugar/flavour	18%	5%
50	2202 10	Beverages with sugar/flavour or aerated waters	28%	40%
51	2202 91 00, 2202 99	Other non-alcoholic beverages	18%	40%
52	2202 99 (plant-based milk)	Plant-based milk drinks (ready to consume)	18%	5%
53	2202 99 10	Soya milk drinks	12%	5%
54	2202 99 20	Fruit pulp or juice-based drinks (non-carbonated)	12%	5%
55	2202 99 30	Beverages containing milk	12%	5%
56	2202 99 90	Caffeinated beverages	28%	40%
57	2401*	Unmanufactured tobacco; tobacco refuse	28%	40%
58	2402*	Cigars, cheroots, cigarillos, cigarettes	28%	40%
59	2403*	Bidis	28%	18%
60	2403*	Other manufactured tobacco; homogenised/reconstituted tobacco	28%	40%
61	2404 11 00*	Tobacco products for inhalation without combustion	28%	40%
62	2404 19 00*	Nicotine/tobacco substitutes for inhalation without combustion	28%	40%

GST Rate Changes on Food Sector (56th GST Council Meeting)

Annexure-II: GST Rate Changes on Food Sector (56th GST Council Meeting)

S. No.	Chapter / Heading / Tariff Item	Description of Goods	Old GST Rate	New GST Rate
1	0401	Ultra-High Temperature (UHT) milk	5%	Nil
2	0406	Chena or paneer, pre-packaged and labelled	5%	Nil
3	1905	Pizza bread	5%	Nil
4	1905 or 2106	Khakhra, chapathi or roti	5%	Nil
5	2106	Paratha, parotta and other Indian breads by any name called	18%	Nil
6	0402 91 10, 0402 99 20	Condensed milk	12%	5%
7	0405	Butter and other fats (ghee, butter oil, etc.) and dairy spreads	12%	5%
8	0406	Cheese	12%	5%
9	0801	Brazil nuts, dried, shelled or peeled	12%	5%
10	0802	Other nuts, dried, shelled or peeled (Almonds, Hazelnuts, Pistachios, etc.)	12%	5%
11	0804	Dates, figs, pineapples, avocados, guavas, mangoes (dried)	12%	5%
12	0805	Citrus fruits such as Oranges, Lemons, Grapefruit (dried)	12%	5%
13	0813	Other dried fruits or mixtures of nuts/ dried fruits (excluding tamarind)	12%	5%
14	1108	Starches; inulin	12%	5%
15	1501	Pig fats (including lard) and poultry fat	12%	5%
16	1502	Fats of bovine animals, sheep or goats	12%	5%
17	1503	Lard stearin, lard oil, oleo stearin, oleo-oil and tallow oil	12%	5%
18	1504	Fats and oils of fish or marine mammals	12%	5%
19	1505	Wool grease and derived fatty substances (lanolin)	12%	5%
20	1506	Other animal fats and oils	12%	5%
21	1516	Animal/microbial fats and oils, partly/wholly hydrogenated or chemically modified	12%	5%
22	1517	Edible mixtures of animal/microbial fats or oils, excluding heading 1516	12%	5%
23	1518	Animal/microbial fats chemically modified (inedible)	12%	5%
24	1601	Sausages and similar products of meat, offal, blood or insects	12%	5%
25	1602	Other prepared/preserved meat, offal, blood or insects	12%	5%
26	1603	Extracts and juices of meat, fish, crustaceans, molluscs	12%	5%
27	1604	Prepared/preserved fish; caviar and substitutes	12%	5%
28	1605	Crustaceans, molluscs and other aquatic invertebrates prepared/preserved	12%	5%
29	1701 91, 1701 99	All goods including refined sugar with added flavouring or colouring	12%	5%
30	1704	Sugar boiled confectionery	12%	5%
31	1902	Pasta, spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni, couscous	12%	5%
32	1905 90 30	Extruded/expanded savoury or salted products	12%	5%
33	2001	Vegetables, fruits, nuts preserved by vinegar/acetic acid	12%	5%
34	2002	Tomatoes prepared/preserved otherwise than by vinegar/acetic acid	12%	5%
35	2003	Mushrooms/truffles prepared/preserved otherwise than by vinegar/acetic acid	12%	5%
36	2004	Other vegetables preserved/frozen, not by vinegar, excluding heading 2006	12%	5%
37	2005	Other vegetables preserved, not frozen, excluding heading 2006	12%	5%
38	2006	Vegetables/fruits preserved by sugar (drained, glacé, crystallised)	12%	5%
39	2007	Jams, fruit jellies, marmalades, fruit/nut purees	12%	5%
40	2008	Other preserved fruits, nuts (groundnuts, cashew, roasted/salted)	12%	5%
41	2009	Fruit/nut/vegetable juices (unfermented, no added spirit)	12%	5%
42	2009 89 90	Tender coconut water, pre-packaged & labelled	12%	5%
43	2101 30	Roasted chicory & other roasted coffee substitutes, extracts/concentrates	12%	5%
44	2102	Yeasts (active/inactive), other single-cell microorganisms, baking powders	12%	5%
45	2103	Sauces, condiments, mustard, curry paste, mayonnaise, salad dressings	12%	5%
46	2106	Texturised vegetable proteins (soya bari), batters	12%	5%
47	2106 90	Namkeens, bhujia, mixtures, pre-packaged and labelled	12%	5%
48	2106 90 91	Diabetic foods	12%	5%
49	2201 (20L pack)	Drinking water packed in 20 L bottles	12%	5%
50	2202 99 10	Soya milk drinks	12%	5%
51	2202 99 20	Fruit pulp or fruit juice-based drinks (non-carbonated)	12%	5%
52	2202 99 30	Beverages containing milk	12%	5%
53	2202 99	Plant-based milk drinks, ready for direct consumption	18%	5%

 Gst Rate Changes On Beverages & Tobacco

Annexure-III: GST Rate Changes on Beverages & Tobacco

S. No.	Chapter / Heading / Tariff Item	Description of Goods	Old GST Rate	New GST Rate
1	2202 91 00, 2202 99	Other non-alcoholic beverages	18%	40%
2	2106 90 20	Pan masala	28%	40%
3	2202 10	All goods including aerated waters containing added sugar/flavouring	28%	40%
4	2202 99 90	Caffeinated beverages	28%	40%
5	2202	Carbonated beverages of fruit drink or with fruit juice	28%	40%
6	1404 90 10	Bidi wrapper leaves (tendu)	18%	5%
7	1404 90 50	Indian katha	18%	5%
8	2403	Bidi	28%	18%
9	2401	Unmanufactured tobacco; tobacco refuse (excluding leaves)	28%	40%
10	2402	Cigars, cheroots, cigarillos, cigarettes of tobacco or substitutes	28%	40%
11	2403	Other manufactured tobacco & substitutes; homogenised/reconstituted tobacco; extracts & essences	28%	40%
12	2404 11 00	Products containing tobacco or reconstituted tobacco for inhalation without combustion	28%	40%
13	2404 19 00	Products containing tobacco or nicotine substitutes for inhalation without combustion	28%	40%

Gst Rate Changes On Agriculture Sector (12% to 5%)

Agriculture Sector (12% to 5%)

S. No.	Chapter / Heading / Tariff Item	Description of Goods
1	8408	Fixed Speed Diesel Engines of power not exceeding 15HP
2	8414 20 20	Other hand pumps
3	8424	Nozzles for drip irrigation equipment or sprinklers
4	8424	Sprinklers; drip irrigation system including laterals; mechanical sprayers
5	8432	Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports-ground rollers; Parts [8432 90]
6	8433	Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; parts thereof
7	8436	Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment; poultry incubators and brooders; parts thereof
8	8479	Composting Machines
9	8701	Tractors (except road tractors for semi-trailers of engine capacity more than 1800 cc)
10	8716 20 00	Self-loading or self-unloading trailers for agricultural purposes
11	8716 80	Hand propelled vehicles (e.g. hand carts, rickshaws); animal drawn vehicles

Gst Rate Changes On Fertilizer Sector

Fertilizer Sector

S. No.	Chapter / Heading / Tariff Item	Description of Goods
1	2807	Sulphuric acid
2	2808	Nitric acid
3	2814	Ammonia
4	29 or 380893	Gibberellic acid
5	3808	Bio-pesticides: Bacillus thuringiensis variants, Trichoderma spp., Pseudomonas fluoresens, Beauveria bassiana, NPV of Helicoverpa armigera & Spodoptera litura, Neem based pesticides, Cymbopogan
6	28 or 38	Micronutrients as per Fertilizer Con

Fertilizer Sector (18% to 5%)

Fertilizer Sector (18% to 5%)

S. No.	Chapter / Heading / Tariff Item	Description of Goods
1	2807	Sulphuric acid
2	2808	Nitric acid
3	2814	Ammonia

Fertilizer Sector (12% to 5%)

Fertilizer Sector (12% to 5%)

S. No.	Chapter / Heading / Tariff Item	Description of Goods
1	29 or 380893	Gibberellic acid
2	3808	Bio-pesticides, namely: 1. Bacillus thuringiensis var. israelensis 2. Bacillus thuringiensis var. kurstaki 3. Bacillus thuringiensis var. galleriae 4. Bacillus sphaericus 5. Trichoderma viride 6. Trichoderma harzianum 7. Pseudomonas fluoresens 8. Beauveriabassiana 9. NPV of Helicoverpaarmigera 10. NPV of Spodopteralitura 11. Neem based pesticides 12. Cymbopogan
3	28 or 38	Micronutrients as per Fertilizer Control Order, 1985, manufactured by registered manufacturers

Gst Rate Changes On Coal

(5% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	2701	Coal; briquettes, ovoids and similar solid fuels manufactured from coal
2	2702	Lignite, whether or not agglomerated, excluding jet
3	2703	Peat (including peat litter), whether or not agglomerated

Gst Rate Changes On Renewable Energy

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	7321 or 8516	Solar cookers
2	8419 12	Solar water heater and system
3	84, 85 or 94	Following renewable energy devices and parts for their manufacture:- (a) Bio-gas plant; (b) Solar power-based devices; (c) Solar power generator; (d) Wind mills, Wind Operated Electricity Generator (WOEG); (e) Waste to energy plants / devices; (f) Solar lantern / solar lamp; (g) Ocean waves/tidal waves energy devices/plants; (h) Photo voltaic cells, whether or not assembled in modules or made up into panels.
4	87	Fuel Cell Motor Vehicles including hydrogen vehicles based on fuel cell technology

Gst Rate Changes On Textile Sector

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	5401	Sewing thread of manmade filaments, whether or not put up for retail sale
2	5402, 5403, 5404, 5405, 5406	Synthetic or artificial filament yarns
3	5508	Sewing thread of manmade staple fibres
4	5509, 5510, 5511	Yarn of manmade staple fibres
5	5601	Wadding of textile materials and articles thereof; such as absorbent cotton wool (except cigarette filter rods)
6	5602	Felt, whether or not impregnate, coated, covered or laminated
7	5603	Nonwovens, whether or not impregnated, coated, covered or laminated
8	5604	Rubber thread and cord, textile covered; textile yarn, and strip and the like of heading 5404 or 5405, impregnated, coated, covered or sheathed with rubber or plastics
9	5605	Metallised yarn, whether or not gimped, being textile yarn or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal [ other than-(i) real zari thread (gold) and silver thread combined with textile thread (ii) imitation zari thread or yan known by any name in trade parlance]
10	5606	Gimped yarn, and strip and the like of heading 5404 or 5405, gimped (other than those of heading 5605 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn
11	5607	Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics [other than jute twine, coir cordage or ropes]
12	5609	Articles of yarn, strip or the like of heading 5404 or 5405, twine, cordage, rope or cables, not elsewhere specified or included
13	5701	Carpets and other textile floor coverings, knotted, whether or not made up
14	5702	Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including “Kelem”, “Schumacks”, “Karamanie” and similar hand-woven rugs
15	5703	Carpets and other textile floor coverings (including Turf), tufted, whether or not made up
16	5704	Carpets and other textile floor coverings, of felt, not tufted or flocked, whether or not made up
17	5705	Other carpets and other textile floor coverings, whether or not made up; such as Mats and mattings including Bath Mats, where cotton predominates by weight, of Handloom, Cotton Rugs of handloom
18	5802	Terry towelling and similar woven terry fabrics, other than narrow fabrics of heading 5806; tufted textile fabrics, other than products of heading 5703
19	5803	Gauze, other than narrow fabrics of heading 5806
20	5804	Tulles and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs, other than fabrics of headings 6002 to 6006
21	5805	Hand-woven tapestries of the type Gobelins, Flanders, Aubusson, Beauvais and the like, and needle-worked tapestries (for example, petit point, cross stitch), whether or not made up
22	5807	Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered
23	5808	Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles[other than saree fall]
24	5809	Woven fabrics of metal thread and woven fabrics of metallised yarn of heading 5605, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included; such as Zari borders
25	5810	Embroidery in the piece, in strips or in motifs, Embroidered badges, motifs and the like
26	5811	Quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise, other than embroidery of heading 5810
27	5901	Textile fabrics coated with gum or amylaceous substances, of a kind used for the outer covers of books or the like; tracing cloth; prepared painting canvas; buckram and similar stiffened textile fabrics of a kind used for hat foundations
28	5902	Tyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon
29	5903	Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902
30	5904	Linoleum, whether or not cut to shape; floor coverings consisting of a coating or covering applied on a textile backing, whether or not cut to shape
31	5905	Textile wall coverings
32	5906	Rubberised textile fabrics, other than those of heading 5902
33	5907	Textile fabrics otherwise impregnated, coated or covered; painted canvas being theatrical scenery, studio back-cloths or the like
34	5908	Textile wicks, woven, plaited or knitted , for lamps, stoves, lighters, candles or the like; incandescent gas mantles and tubular knitted gas mantle fabric therefor, whether or not impregnated
35	5909	Textile hose piping and similar textile tubing, with or without lining, armour or accessories of other materials
36	5910	Transmission or conveyor belts or belting, of textile material, whether or not impregnated, coated, covered or laminated with plastics, or reinforced with metal or other material
37	5911	Textile products and articles, for technical uses, specified in Note 7 to this Chapter; such as Textile fabrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams); Bolting cloth, whether or Not made up; Felt for cotton textile industries, woven; Woven textiles felt, whether or not impregnated or coated, of a kind commonly used in other machines, Cotton fabrics and articles used in machinery and plant, Jute fabrics and articles used in machinery or plant, Textile fabrics of metalised yarn of a kind commonly used in paper making or other machinery, Straining cloth of a kind used in oil presses or the like, including that of human hair, Paper maker’s felt, woven, Gaskets, washers, polishing discs and other machinery parts of textile articles
38	6501	Textile caps
39	6505	Hats (knitted/crocheted) or made up from lace or other textile fabrics
40	9404	Products wholly made of quilted textile material not exceeding Rs. 2500 per piece

Change in value. No change in rate (5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	61	Articles of apparel and clothing accessories, knitted or crocheted, of sale value not exceeding Rs. 2500 per piece
2	62	Articles of apparel and clothing accessories, not knitted or crocheted, of sale value not exceeding Rs. 2500 per piece
3	63 (other than 63053200, 63053300, 6309)	Other made up textile articles, sets of sale value not exceeding Rs. 2500 per piece
4	9404	Cotton quilts of sale value not exceeding Rs. 2500 per piece

(18% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	5402, 5404, 5406	All goods
2	5403, 5405, 5406	All goods
3	5501, 5502	Synthetic or artificial filament tow
4	5503, 5504, 5506, 5507	Synthetic or artificial staple fibres
5	5505	Waste of manmade fibres

(12% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	61	Articles of apparel and clothing accessories, knitted or crocheted, of sale value exceeding Rs. 2500 per piece
2	62	Articles of apparel and clothing accessories, not knitted or crocheted, of sale value exceeding Rs. 2500 per piece
3	63 [other than 6309]	Other made up textile articles, sets of sale value exceeding Rs. 2500 per piece [other than Worn clothing and other worn articles; rags]
4	9404	Cotton quilts of sale value exceeding Rs. 2500 per piece
5	9404	Products wholly made of quilted textile material exceeding Rs. 2500 per piece

Gst Rate Changes On Health Sector

(5% to Nil)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	30	1 Agalsidase Beta 2 Imiglucerase 3 Eptacog alfa activated recombinant coagulation factor VIIa

(12% to Nil)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	30	1 Onasemnogene abeparvovec 2 Asciminib 3 Mepolizumab 4 Pegylated Liposomal Irinotecan 5 Daratumumab 6 Daratumumab subcutaneous 7 Teclistamab 8 Amivantamab 9 Alectinib 10 Risdiplam 11 Obinutuzumab 12 Polatuzumab vedotin 13 Entrectinib 14 Atezolizumab 15 Spesolimab 16 Velaglucerase Alpha 17 Agalsidase Alfa 18 Rurioctocog Alpha Pegol 19 Idursulphatase 20 Alglucosidase Alfa 21 Laronidase 22 Olipudase Alfa 23 Tepotinib 24 Avelumab 25 Emicizumab 26 Belumosudil 27 Miglustat 28 Velmanase Alfa 29 Alirocumab 30 Evolocumab 31 Cystamine Bitartrate 32 CI-Inhibitor injection 33 Inclisiran

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	28	Anaesthetics
2	28	Potassium Iodate
3	28	Steam
4	2801 20	Iodine
5	2804 40 10	Medical grade oxygen
6	2847	Medicinal grade hydrogen peroxide
7	30	All Drugs and medicines including: Fluticasone Furoate + Umeclidinium + Vilanterol FF/UMEC/VI Brentuximab Vedotin Ocrelizumab (iv) Pertuzumab Pertuzumab + trastuzumab (vi) Faricimab
8	3001	Glands and other organs for organo-therapeutic uses, dried, whether or not powdered; extracts of glands or other organs or of their secretions for organo-therapeutic uses; heparin and its salts; other human or animal substances prepared for therapeutic or prophylactic uses, not elsewhere specified or included
9	3002	Animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; toxins, cultures of micro-organisms (excluding yeasts) and similar products
10	3003	Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale, including Ayurvaedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments
11	3004	Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale, including Ayurvaedic, Unani, homoeopathic siddha or Bio-chemic systems medicaments, put up for retail sale
12	3005	Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes
13	3006	Pharmaceutical goods specified in Note 4 to this Chapter [i.e. Sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or denatal adhesion barriers, whether or not absorbable; Waste pharmaceuticals] [other than contraceptives and Ostomy appliances]
14	3822	All diagnostic kits and reagents
15	4015	Surgical rubber gloves or medical examination rubber gloves
16	90 or any other Chapter	Blood glucose monitoring system (Glucometer) and test strips
17	90 or any other Chapter	Patent Ductus Arteriousus / Atrial Septal Defect occlusion device
18	9004	Spectacles and goggles for correcting vision
19	9018	Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments
20	9019	Mechano-therapy appliances; massage apparatus; psychological aptitude-testing apparatus; ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus
21	9020	Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters
22	9022	Apparatus based on the use of X-rays or of alpha, beta or gamma radiations, for medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus, X-ray tubes and other X-ray generators, high tension generators, control panels and desks, screens, examinations or treatment tables, chairs and the light
	9804	Other Drugs and medicines intended for personal use

(18% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1.	9025	Thermometers for medical, surgical, dental or veterinary usage
2.	9027	Instruments and apparatus for medical, surgical, dental or veterinary uses for physical or chemical analysis.

Gst Rate Changes On Education

(5% to Nil)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1.	4016	Erasers

(12% to Nil)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	4905	Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed
2	8214	Pencil sharpeners
3	9608, 9609	Pencils (including propelling or sliding pencils), crayons, pastels, drawing charcoals and tailor’s chalk
4	4820	Exercise book, graph book, & laboratory note book and notebooks

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	7310 or 7326	Mathematical boxes, geometry boxes and colour boxes

Gst Rate Changes On Common Man Items

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	33061010	Tooth powder
2	3406	Candles, tapers and the like
3	3605 00 10	All goods-safety matches
4	3926	Feeding bottles
5	4014	Nipples of feeding bottles
6	4202 22 20	Hand bags and shopping bags, of cotton
7	4202 22 30	Hand bags and shopping bags, of jute
8	4419	Tableware and Kitchenware of wood
9	6601	Umbrellas and sun umbrellas (including walking-stick umbrellas, garden umbrellas and similar umbrellas)
10	6603	Parts, trimmings and accessories of articles of heading 6601 or 6602
11	6911	Tableware, kitchenware, other household articles and toilet articles, of porcelain or china
12	6912	Tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china
13	7319	Sewing needles
14	7321	Kerosene burners, kerosene stoves and wood burning stoves of iron or steel
15	7323	Table, kitchen or other household articles of iron & steel; Utensils
16	7418	Table, kitchen or other household articles of copper; Utensils
17	7419 80 30	Brass Kerosene Pressure Stove
18	7615	Table, kitchen or other household articles of aluminium; Utensils
19	8452	Sewing machines, other than book-sewing machine of heading 8440; furniture, bases and covers specially designed for sewing machines; sewing machines needles and parts of sewing machines
20	8712	Bicycles and other cycles (including delivery tricycles), not motorised
21	8714	Parts and accessories of bicycles and other cycles (including delivery tricycles), not motorised, of 8712
22	9403	Furniture wholly made of bamboo, cane or rattan
23	9405	Hurricane lanterns, Kerosene lamp / pressure lantern, petromax, glass chimney, and parts thereof
24	9615	Combs, hair-slides and the like; hairpins, curling pins, curling grips, hair-curlers and the like, other than those of heading 8516, and parts thereof
25	9619 00 30, 9619 00 40, or 9619 00 90	All goods- napkins and napkin liners for babies, clinical diapers

(18% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	3304	Talcum powder, Face powder
2	3305	Hair oil, shampoo
3	3306	Dental floss, toothpaste
4	3307	Shaving cream, shaving lotion, aftershave lotion
5	3401	Toilet Soap (other than industrial soap) in the form of bars, cakes, moulded pieces or shapes
6	96032100	Tooth brushes including dental-plate brushes

Gst Rate Changes On Consumer Electronics

(28% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	8415	Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated
2	8422	Dish washing machines, household [8422 11 00] and other [8422 19 00]
3	8528	Television sets (including LCD and LED television); Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus, set top box for television and Television set (including LCD and LED television).

Gst Rate Changes On Paper Sector

12% to Nil

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	4802	Uncoated paper and paperboard used for exercise book, graph book, laboratory notebook and notebooks

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	4701	Mechanical wood pulp
2	4703	Chemical wood pulp, soda or sulphate, other than dissolving grades
3	4704	Chemical wood pulp, sulphite, other than dissolving grades
4	4705	Wood pulp obtained by a combination of mechanical and chemical pulping processes
5	4706	Pulps of fibres derived from recovered (waste and scrap) paper or paperboard or of other fibrous cellulosic material
6	4817 30	Boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery
7	4819 10, 4819 20	Cartons, boxes and cases of,- Corrugated paper or paper boards; or Non-corrugated paper or paper board
8	4823	Paper pulp moulded trays
9	48	Paper splints for matches, whether or not waxed, Asphaltic roofing sheets
10	48	Paper Sack and Bio degradable bags

(12% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	4702	Chemical wood pulp, dissolving grades
2	4802	Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non-perforated punch-cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803[other than Uncoated paper and paperboard used for exercise book, graph book, laboratory notebook and notebooks]
3	4804	Uncoated kraft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803
4	4805	Other uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specified in Note 3 to this Chapter
5	4806 20 00	Greaseproof papers
6	4806 40 10	Glassine papers
7	4807	Composite paper and paperboard (made by sticking flat layers of paper or paperboard together with an adhesive), not surface-coated or impregnated, whether or not internally reinforced, in rolls or sheets
8	4808	Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803
9	4810	Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets of any size

Gst Rate Changes On Transportation Sector

(28% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	4011	New pneumatic tyres, of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; rear tractor tyres; and of a kind used on aircraft]
2	8701	Road tractors for semi-trailers of engine capacity more than 1800 cc
3	8702	Motor vehicles for the transport of ten or more persons, including the driver [other than buses for use in public transport, which exclusively run on Bio-fuels]
4	8703	Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm.
5	8703	Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm.
6	8702 or 8703	Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles
7	8703	Three wheeled vehicles
8	8703 40, 8703 60	Motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm
9	8703 50, 8703 70	Motor vehicles with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion, of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm
10	8704	Motor vehicles for the transport of goods [other than Refrigerated motor vehicles]
11	8706	Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705
12	8707	Bodies (including cabs), for the motor vehicles of headings 8701 to 8705
13	8708	Parts and accessories of the motor vehicles of headings 8701 to 8705 [other than specified parts of tractors]
14	8711	Motorcycles of engine capacity (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars, of an engine capacity not exceeding 350cc; side cars
15	8714	Parts and accessories of vehicles of heading 8711
16	8903	Rowing boats and canoes
17	9401 20 00	Seats of a kind used for motor vehicles

(28% to 40%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1.	8703	Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars, other than those mentioned at Sr. Nos.4,5,6,7,8 and 9 of above table [wherein 28% to 18% is mentioned ]
2.	870340, 870360	Motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, of engine capacity exceeding 1200cc or of length exceeding 4000 mm
3.	870350, 870370	Motor vehicles with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion, of engine capacity exceeding 1500cc or of length exceeding 4000 mm
4.	8711	Motor cycles of engine capacity exceeding 350 cc
5.	8802	Aircraft for personal use.
6.	8903	Yacht and other vessels for pleasure or sports

Gst Rate Changes On Sports Goods And Toys

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	4203	Gloves specially designed for use in sports
2	9503	Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys]
3	9504	Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines]
4	9506	Sports goods other than articles and equipment for general physical exercise
5	9507	Fishing rods, and other line fishing tackle; fish landing nets, butterfly nets and similar nets; decoy “birds” (other than those of heading 9208 or 9705) and similar hunting or shooting requisites

Gst Rate Changes On DUTIABLE ARTICLES FOR PERSONAL USE (FOR IMPORTS)

(28% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1.	9804	All dutiable articles intended for personal use

Gst Rate Changes On Leather Sector

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	4107	Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine animals, without hair on, whether or not split, other than leather of heading 4114
2	4112	Leather further prepared after tanning or crusting, including parchment-dressed leather, of sheep or lamb, without wool on, whether or not split, other than leather of heading 4114
3	4113	Leather further prepared after tanning or crusting, including parchment-dressed leather, of other animals, without wool or hair on, whether or not split, other than leather of heading 4114
4	4114	Chamois (including combination chamois) leather; patent leather and patent laminated leather; metallised leather
5	4115	Composition leather with a basis of leather or leather fibre, in slabs, sheets or strip, whether or not in rolls; parings and other waste of leather or of composition leather, not suitable for the manufacture of leather articles; leather dust, powder and flour
6	6701	Skins and other parts of birds with their feathers or down, feathers, parts of feathers, down and articles thereof (other than goods of heading 0505 and worked quills and scapes)

Gst Rate Changes On Wood Sector

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	44 or any Chapter	The following goods, namely: — Cement Bonded Particle Board; Jute Particle Board; Rice Husk Board; Glass-fibre Reinforced Gypsum Board (GRG) Sisal-fibre Boards; Bagasse Board; and Cotton Stalk Particle Board Particle/fibre board manufactured from agricultural crop residues
2	4404	Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or the like
3	4405	Wood wool; wood flour
4	4406	Railway or tramway sleepers (cross-ties) of wood
5	4408	Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm [for match splints]
6	4409	Bamboo flooring
7	4415	Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood
8	4416	Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves
9	4417	Tools, tool bodies, tool handles, broom or brush bodies and handles, of wood; boot or shoe lasts and trees, of wood
10	4418	Bamboo wood building joinery
11	4420	Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling in Chapter 94
12	4421	Other articles of wood; such as clothes hangers, Spools, cops, bobbins, sewing thread reels and the like of turned wood for various textile machinery, Match splints, Pencil slats, Parts of wood, namely oars, paddles and rudders for ships, boats and other similar floating structures, Parts of domestic decorative articles used as tableware and kitchenware [other than Wood paving blocks, articles of densified wood not elsewhere included or specified, Parts of domestic decorative articles used as tableware and kitchenware]
13	4502 00 00	Natural cork, debacked or roughly squared, or in rectangular (including square) blocks, plates, sheets or strip (including sharp-edged blanks for corks or stoppers)
14	4503	Articles of natural cork such as Corks and Stoppers, Shuttlecock cork bottom
15	4504	Agglomerated cork (with or without a binding substance) and articles of agglomerated cork

Gst Rate Changes On Defence

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	8525 60	Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc
2	8710	Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons, and parts of such vehicles

Gst Rate Changes On Footwear Sector

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	64	Footwear of sale value not exceeding Rs.2500 per pair

(Maintain at 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
	64	Footwear of sale value exceeding Rs.2500 per pair

Gst Rate Changes On Miscellaneous Items

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	01012100, 010129	Live horses
2	2515 12 10	Marble and travertine blocks
3	2516	Granite blocks
4	29061110	Natural menthol
5	29061110, 30, 3301	Following goods from natural menthol namely: Menthol and menthol crystals Peppermint (Mentha oil) Fractionated/ de-terpinated mentha oil (DTMO) De-mentholised oil(DMO) Spearmint oil Mentha piperita oil
6	3701	Photographic plates and film for x-ray for medical use
7	3705	Photographic plates and films, exposed and developed, other than cinematographic film
8	3706	Photographic plates and films, exposed and developed, whether or not incorporating sound track or consisting only of sound track, other than feature films
9	3818	Silicon wafers
10	3926	Plastic beads
11	4007	Latex Rubber Thread
12	4016	Rubber bands
13	6602	whips, riding-crops and the like
14	6909	Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic
15	7015 10	Glasses for corrective spectacles and flint buttons
16	7020	Globes for lamps and lanterns, Founts for kerosene wick lamps, Glass chimneys for lamps and lanterns
17	7310, 7323, 7612, or 7615	Milk cans made of Iron, Steel, or Aluminium
18	7317	Animal shoe nails
19	8306	Bells, gongs and the like, non-electric, of base metal; statuettes and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; metal bidriware
20	8420	Hand operated rubber roller
21	9001	Contact lenses; Spectacle lenses
22	9003	Frames and mountings for spectacles, goggles or the like, and parts thereof
23	9404	Coir products [except coir mattresses]
24	9607	Slide fasteners and parts thereof

(12% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	29061190	Other than natural menthol
2	29061190, 30, 3301	Following goods made from other than natural menthol, namely: Menthol and menthol crystals Peppermint (Mentha oil) Fractionated/ de-terpinated mentha oil (DTMO) De-mentholised oil(DMO) Spearmint oil Mentha piperita oil
3	33074100	Odoriferous preparations which operate by burning (other than agarbattis, lobhan, dhoop batti, dhoop, sambhrani)
4	3826	Biodiesel (other than biodiesel supplied to Oil Marketing Companies for blending with High Speed Diesel)
5	Any Chapter	Goods specified in the List required in connection with : (1) Petroleum operations undertaken under petroleum exploration licenses or mining leases, granted by the Government of India or any State Government to the Oil and Natural Gas Corporation or Oil India Limited on nomination basis, or (2) Petroleum operations undertaken under specified contracts, or (3) Petroleum operations undertaken under specified contracts under the New Exploration Licensing Policy, or (4) Petroleum operations undertaken under specified contracts under the Marginal Field Policy (MFP), or (5) Coal bed methane operations undertaken under specified contracts under the Coal Bed Methane Policy.

(28% to 40%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	9302	Revolvers and pistols, other than those of heading 9303 or 9304
2	9614	Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof

Gst Rate Changes On Construction Sector

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	68	Sand lime bricks or Stone inlay work

(From 28% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	2523	Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers

Gst Rate Changes On Handicrafts Sector

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	44, 68, 83	Idols of wood, stone [including marble] and metals [other than those made of precious metals]
2	6802	Statues, statuettes, pedestals; high or low reliefs, crosses, figures of animals, bowls, vases, cups, cachou boxes, writing sets, ashtrays, paper weights, artificial fruit and foliage, etc.; other ornamental goods essentially of stone
3	6913	Statues and other ornamental articles
4	9601	Worked ivory, bone, tortoise shell, horn, antlers, mother of pearl, and other animal carving material and articles of these materials, articles of coral (including articles obtained by moulding)
5	9701	Paintings, drawings and pastels, executed entirely by hand, other than drawings of heading 4906 and other than hand-painted or hand-decorated manufactured articles; collages, mosaics and similar decorative plaques
6	9702	Original engravings, prints and lithographs
7	9703	Original sculptures and statuary, in any material
8	9705	Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest [other than numismatic coins]
9	9706	Antiques of an age exceeding one hundred years
10	3406	Handcrafted candles
11	4202 22,4202 29, 4202 31 10, 4202 31 90, 4202 32,4202 39	Handbags including pouches and purses; jewellery box
12	4416, 4421 99 90	Carved wood products, art ware/decorative articles of wood (including inlay work, casks, barrel, vats)
13	4414	Wooden frames for painting, photographs, mirrors etc
14	4420	Statuettes & other ornaments of wood, wood marquetry & inlaid, jewellery box, wood lathe and lacquer work [including lathe and lacquer work, ambadi sisal craft]
15	4503 90 90 4504 90	Art ware of cork [including articles of sholapith]
16	6117, 6214	Handmade/hand embroidered shawls of sale value exceeding Rs. 2500 per piece
17	6802	Carved stone products (e.g., statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
18	68159990	Stone art ware, stone inlay work
19	691200 10, 6912 00 20	Tableware and kitchenware of clay and terracotta, other clay articles
20	6913 90 00	Statuettes & other ornamental ceramic articles (incl blue potteries)
21	7009 92 00	Ornamental framed mirrors
22	7018 90 10	Glass statues [other than those of crystal]
23	7020 00 90	Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ]
24	7326 90 99	Art ware of iron
25	7419 80	Art ware of brass, copper/ copper alloys, electro plated with nickel/silver
26	7616 99 90	Aluminium art ware
27	8306	Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchloga artware, idol, Swamimalai bronze icons, dhokra jaali)
28	940510	Handcrafted lamps (including panchloga lamp)
29	940150, 9403 80	Furniture of bamboo, rattan and cane
30	9503	Dolls or other toys made of wood or metal or textile material [incl wooden toys of sawantwadi, Channapatna toys, Thanjavur doll)
31	9504	Ganjifa card
32	9601	Worked articles of ivory, bone, tortoise shell, horn, antlers, coral, mother of pearl, seashell other animal carving material
33	9602	Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac)
34	9701	Hand paintings drawings and pastels (incl Mysore painting, Rajasthan painting, Tanjore painting, Palm leaf painting, basoli etc)
35	9703	Original sculptures and statuary, in metal, stone or any material
36	4802	Handmade Paper and Paper board

Gst Rate Changes On Other Machinery

(12% to 5%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	8401	Fuel elements (cartridges), non-irradiated, for nuclear reactors

(28% to 18%)

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
1	8407	Spark-ignition reciprocating or rotary internal combustion piston engine [other than aircraft engines]
2	8408	Compression-ignition internal combustion piston engines (diesel or semi-diesel engines)
3	8409	Parts suitable for use solely or principally with the engines of heading 8407 or 8408
4	8413	Pumps for dispensing fuel or lubricants of the type used in filling stations or garages [8413 11], Fuel, lubricating or cooling medium pumps for internal combustion piston engines [8413 30]
5	8507	Electric accumulators, including separators therefor, whether or not rectangular (including square) other than Lithium-ion battery and other Lithium-ion accumulators including Lithium-ion power banks
6	8511	Electrical ignition or starting equipment of a kind used for spark-ignition or compression-ignition internal combustion engines (for example, ignition magnetos, magneto-dynamos, ignition coils, sparking plugs and glow plugs, starter motors); generators (for example, dynamos, alternators) and cut-outs of a kind used in conjunction with such engines

Gst Rate Changes On Other Proposals

GST 28%/18% to 5%

S.No	Chapter / Heading / Sub-heading / Tariff item	Description of goods
1.	8806	Unmanned aircrafts

IGST 18% to Nil

S.No	Chapter / Heading / Sub-heading / Tariff item	Description of goods
1.	49	Technical documentation in respect of goods exempted under notification No. 19/ 2019-Customs dated 06.07.2019.
2.	71	Natural Cut and Polished Diamonds up to 25 cents (1/4 carats) imported under Diamond Imprest Authorization Scheme
3.	Any chapter	Works of art and antiques
4.	88, 8536	Flight Motion Simulator and its parts
5.	88, 8536	Target Motion Simulator and its parts
6.	Any chapter	Parts, sub-assemblies of HACFS
7.	84, 85	Low noise amplifier (Hermetic sealed), vent guide assembly-Return, vent guide assembly-supply, vent guide assembly-NBC for MRSAM system
8.	84, 85, 87, 90, 93	Parts and sub-assemblies of IADWS
9.	88	Military transport aircraft (C-130, C-295MW)
10.	89	Deep Submergence Rescue Vessel
11.	89	Unmanned Underwater vessels/platforms
12.	8807	Ejection Seats for fighter aircrafts
13.	8506	High performance batteries for drones and specialised equipment
14.	8525	Communication devices including software defined radios with component and accessories
15.	9019, 9020	Air diving, rebreather sets, diving systems, components and accessories
16.	89	Sonobuoys for naval air assets
17.	93	Ship launched missiles
18.	93	Rockets with calibre more than 100mm
19.	88	RPA (Remote Piloted Aircraft) for military use
20.	Any chapter	Parts, sub-assemblies, spares, accessories, tools, testing equipment, literature for goods like artillery weapons, rifles, aircrafts etc. except for 12.7mm SRCG, 155mm/45 Cal. Dhanush, L-70 Gun, L-70 Gun, AK-630 Naval Gun, L-70 Gun, Light machine gun, MAG Gun.

*To be effective from a date to be notified based on discharging of entire loan and interest liability on account of compensation cess.

Gst Rate Changes On Services

TRANSPORTATION SECTOR

S.No.	Entry	From	To
1	Supply of Air transport of passengers in other than economy class	12% with ITC	18% with ITC
2	Supply of Passenger transport by any motor vehicle where fuel cost is included	5% with ITC of input services (in the same line of business) 12% with ITC	5% with ITC of input services (in the same line of business) 18% with ITC
3	Supply of transport of goods in containers by rail by any person other than Indian Railways	12% with ITC	5% without ITC 18% with ITC
4	Supply of transportation of natural gas, petroleum crude, motor spirit, high speed diesel or ATF through pipeline	5% without ITC	5% without ITC 12% with ITC 18% with ITC
5	Supply of Transport of goods by GTA	5% without ITC (RCM/FCM)	5% without ITC (RCM/FCM) 12% with ITC 18% with ITC
6	Supply of Renting of any motor vehicle (with operator) of any motor vehicle designed to carry passengers where the cost of fuel is included in consideration	5% with ITC of input services (in the same line of business)	5% with ITC of input services (in the same line of business) 12% with ITC 18% with ITC
7	Supply of Renting of goods carriage (with operator) where fuel cost is included in consideration	12% with ITC	5% with ITC of input services (in the same line of business) 18% with ITC
8	Supply of Multimodal transport of goods within India	12% with ITC	5%, where no leg of transport is through air, with restricted ITC (i.e. 5% of input services of goods transportation). 18% with ITC

JOB WORK SECTOR

S.No.	Entry	From	To
1	Supply of services by way of job work in relation to umbrella	12% with ITC	5% with ITC
2	Supply of job work services or any treatment or process in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @(12%) 5%	12% with ITC	5% with ITC
3	Supply of job work in relation to bricks which attract GST at the rate of 5%	12% with ITC	5% with ITC
4	Supply of job-work services in relation goods falling under Chapter 30 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) (pharmaceutical products)	12% with ITC	5% with ITC
5	Supply of job-work services in relation to Hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975	12% with ITC	5% with ITC
6	Supply of job-work not elsewhere covered (residual entry)	12% with ITC	18% with ITC

CONSTRUCTION SECTOR

S.No.	Entry	From	To
1	Composite supply of works contract and associated services, in respect of offshore works contract relating to oil and gas exploration and production in offshore area	12% with ITC	18% with ITC
2	Composite supply of works contract involving predominantly earth work (that is, constituting more than 75per cent. of the value of the works contract) provided to Government	12% with ITC	18% with ITC
3	Composite supply of works contract provided by a sub-contractor to the main contractor providing services at Sl. No. 2 above to Government	12% with ITC	18% with ITC

LOCAL DELIVERY SERVICES

S.No.	Entry	From	To
1	Local delivery services (This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 996813 – under the Group Postal and Courier Services)	18% with ITC	18% with ITC (no change)
2	Supply of local delivery services through Electronic Commerce Operator (ECO)	Not currently notified under section 9(5) of the CGST Act	Rate of GST at 18%. Local delivery services, to be notified under section 9(5) of the CGST Act in cases where the person supplying such services through electronic commerce operator is not liable for registration under GST The applicable rate on such services to be 18%. Local delivery services provided by and through ECO to be excluded from the scope of GTA services.

OTHER SERVICES

S.No.	Entry	From	To
1	Supply of Service of third-party insurance of “goods carriage”	12% with ITC	5% with ITC
2	Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less.	12% with ITC	5% with ITC
3	Services by way of treatment of effluents by a Common Effluent Treatment Plant;	12% with ITC	5% with ITC
4	Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common bio-medical waste treatment facility to a clinical establishment.	12% with ITC	5% with ITC
4	Supply of “hotel accommodation” having value of supply of a unit of accommodation less than or equal to seven thousand five hundred rupees per unit per day or equivalent	12% with ITC	5% without ITC
5	Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both;	12% with ITC	18% with ITC
6	Support services to exploration, mining or drilling of petroleum crude or natural gas or both.	12% with ITC	18% with ITC
7	Beauty and physical well-being services falling under group 99972 [This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 9997]	18% with ITC	5% without ITC

(28% to 40%)

S.No.	Entry	From	To
1	Admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL.	28% With ITC	40% with ITC
2	Services by a race club for licensing of bookmakers in such club.	28% With ITC	40% with ITC
3	Leasing or rental services, without operator, of goods which will attract (28%) 40% GST	28% With ITC	40% with ITC
4	Specified Actionable Claims (betting, casinos, gambling, horse racing, lottery, online money gaming) defined as goods (Corresponding changes in the lottery valuation rules are also being carried out)	28% With ITC	40% with ITC

Services Proposed to be exempted

LIFE AND HEALTH INSURANCE

S.No.	Entry	From	To
1	All individual health insurance, along with reinsurance thereof	18% with ITC	Exemption
2	All individual life insurance, along with reinsurance thereof	18% with ITC	Exemption

✅ Conclusion

The Next-Gen GST reforms 2025 mark a significant milestone in India’s tax system, bringing simplicity, transparency, and fairness to GST compliance. With a two-slab rate structure (5% for essentials, 18% for sta

Gst Rate Changes On Other Machinery

ndard goods, and 40% for sin/luxury items), consumers benefit from lower prices on daily essentials, healthcare, and packaged foods, while insurance exemptions enhance financial security.

Businesses and MSMEs gain from streamlined compliance, faster provisional refunds, and the operational GSTAT tribunal, enabling easier dispute resolution and improved cash flow. Reduced GST on agricultural inputs, machinery, and renewable energy equipment supports farmers, rural growth, and sustainable industrial development.

Overall, these reforms create a balanced ecosystem that empowers consumers, boosts MSME competitiveness, strengthens fiscal stability, and promotes inclusive economic growth across India.

 

Want to Raise money for your company through SME IPO? Read More