On 17-9-2025, the Ministry of Finance notified the new rates of Goods and Services replacing the rates notified in the year 2017 on 28-6-2017 to streamline the tax structure and provide relief to consumers. The new rates will come into effect from 22-9-2025.
The new GST Rates are now categorized in 7 schedules:
|
Schedule |
CGST Rate |
Total Rate |
|
Schedule I |
2.5% |
5% |
|
Schedule II |
9% |
18% |
|
Schedule III |
20% |
40% |
|
Schedule IV |
1.5% |
3% |
|
Schedule V |
0.125% |
0.25% |
|
Schedule VI |
0.75% |
1.50% |
|
Schedule VII |
14% |
28% |
Earlier the GST Rates were categorized in 6 schedules:
|
Schedule |
CGST Rate |
Total Rate |
|
Schedule I |
2.5% |
5% |
|
Schedule II |
6% |
12% |
|
Schedule III |
9% |
18% |
|
Schedule IV |
14% |
28% |
|
Schedule V |
1.5% |
3% |
|
Schedule VI |
0.125% |
0.25% |
Key Features:
-
Rates on many essential and common household goods and services have been reduced to 5% as Schedule I now covers 516 items.
-
The slab of 6% rate has been completely removed.
-
18% rates applicable on consumer electronics and compact cars.
-
40% slab has been introduced which cover the luxury items such as:
-
All goods (including aerated waters), containing added sugar or other sweetening matter or flavored;
-
Other non-alcoholic beverages [other than those specified in Schedule I of this notification];
-
Caffeinated Beverages;
-
Carbonated beverages of fruit drink or carbonated beverages with fruit juice;
-
Motor cars and other motor vehicles principally designed for the transport of persons), including station wagons and racing cars except for some categories which belong under the 18% rate slab;
-
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;
-
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 1500 cc or of length exceeding 4000 mm;
-
Motorcycles of engine capacity exceeding 350 cc;
-
Aircrafts for personal use;
-
Yachts and other vessels for pleasure or sports;
-
Revolvers and pistols with exemption on some;
-
Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof;
-
Specified actionable claim- betting, casinos, gambling, horse racing, lottery, online money gaming.
-
-
Pearls, gold and silver jewelry are now covered under Schedule IV with a rate of 3%.
-
Schedule V prescribes the lowest rate of 0.25% on precious stones and diamonds.
-
Schedule VI covers all the special category goods except for the ones specified in Schedule V (Rough/ simply sawn/industrial/ non-industrial diamonds and synthetic/ reconstructed/ semi-precious stones).
-
Schedule VI now covers all the items related to tobacco and pan masala with a rate of 28%.
New rates vs old rates:
|
Goods/ Services |
New Rate |
Old Rate |
|
Ultra-High Temperature (UHT) Milk |
Nil |
5% |
|
Cheese, butter |
5% |
12% |
|
Diabetic food |
5% |
18% |
|
Toothpaste |
5% |
18% |
|
Dental floss |
5% |
28% |
|
Shaving Cream |
5% |
28% |
|
Candles |
5% |
12% |
|
Feeding bottles |
5% |
12% |
|
Rear Tractor Tyres |
5% |
18% |
|
Handbags and shopping bags of cotton/ jute |
5% |
18% |
|
Tableware and kitchenware |
5% |
18% |
|
Carpets |
5% |
12% |
|
Textile wall coverings |
5% |
12% |
|
Sewing needles |
5% |
18% |
|
Perfumes |
18% |
28% |
|
Fireworks, signalling flares, fog signals |
18% |
28% |
|
Wall papers |
18% |
28% |
|
Artificial flowers |
18% |
28% |
|
Ceramic items |
18% |
28% |
|
Glass mirrors |
18% |
28% |
|
Glucometer |
5% |
12% |
|
Coal |
18% |
5% |
|
Soya Milk drinks |
5% |
12% |
|
Dish Washing Machine |
18% |
28% |
|
Laundry Washing Machine |
18% |
28% |
|
Air conditioner |
18% |
28% |
|
Refrigerators |
18% |
28% |
|
Stove |
5% |
12% |
|
Hair Dryer/ Curlers |
18% |
28% |
|
Utensils of iron and steel |
5% |
12% |
Launching soon: GST Rate Finder 2.0 on SCC Online Tax Edition.
To know more about GST please click here: GST Rates 2.0