{"id":360682,"date":"2025-09-18T17:30:37","date_gmt":"2025-09-18T12:00:37","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=360682"},"modified":"2025-09-19T09:56:32","modified_gmt":"2025-09-19T04:26:32","slug":"new-gst-rates-notifed-wef-22-september","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/09\/18\/new-gst-rates-notifed-wef-22-september\/","title":{"rendered":"New GST Rates effective from 22-9-2025: Major reform to ease consumer burden and simplify tax structure"},"content":{"rendered":"
\n

On 17-9-2025, the Ministry of Finance<\/span> notified the new rates of Goods and Services<\/span> 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<\/span>.<\/p>\n

The new GST Rates are now categorized in 7 schedules:<\/h3>\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n\n
\n

Schedule<\/p>\n<\/td>\n

\n

CGST Rate<\/p>\n<\/td>\n

\n

Total Rate<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule I<\/p>\n<\/td>\n

\n

2.5%<\/p>\n<\/td>\n

\n

5%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule II<\/p>\n<\/td>\n

\n

9%<\/p>\n<\/td>\n

\n

18%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule III<\/p>\n<\/td>\n

\n

20%<\/p>\n<\/td>\n

\n

40%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule IV<\/p>\n<\/td>\n

\n

1.5%<\/p>\n<\/td>\n

\n

3%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule V<\/p>\n<\/td>\n

\n

0.125%<\/p>\n<\/td>\n

\n

0.25%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VI<\/p>\n<\/td>\n

\n

0.75%<\/p>\n<\/td>\n

\n

1.50%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VII<\/p>\n<\/td>\n

\n

14%<\/p>\n<\/td>\n

\n

28%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Earlier the GST Rates were categorized in 6 schedules:<\/h3>\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n
\n

Schedule<\/p>\n<\/td>\n

\n

CGST Rate<\/p>\n<\/td>\n

\n

Total Rate<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule I<\/p>\n<\/td>\n

\n

2.5%<\/p>\n<\/td>\n

\n

5%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule II<\/p>\n<\/td>\n

\n

6%<\/p>\n<\/td>\n

\n

12%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule III<\/p>\n<\/td>\n

\n

9%<\/p>\n<\/td>\n

\n

18%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule IV<\/p>\n<\/td>\n

\n

14%<\/p>\n<\/td>\n

\n

28%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule V<\/p>\n<\/td>\n

\n

1.5%<\/p>\n<\/td>\n

\n

3%<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VI<\/p>\n<\/td>\n

\n

0.125%<\/p>\n<\/td>\n

\n

0.25%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Key Features:<\/h3>\n
    \n
  1. \n

    Rates on many essential and common household goods and services have been reduced to 5% as Schedule I<\/span> now covers 516 items.<\/p>\n<\/li>\n

  2. \n

    The slab of 6% rate has been completely removed<\/span>.<\/p>\n<\/li>\n

  3. \n

    18% rates applicable on consumer electronics and compact cars.<\/li>\n<\/p>\n

  4. \n

    40% slab<\/span> has been introduced which cover the luxury items such as:<\/p>\n