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

India’s indirect tax continues to evolve, and FY 2025 brought another round of rationalisation. For readers hunting for new GST rates, this guide compiles the new gst rates list in one place and explains how the slabs map to everyday goods and services. Think of it as a plain-English explainer written for a busy taxpayer who just wants to know: what changed, which items moved, and how it affects bills. This gst new update recaps the slabs (0%, 0.25%, 3%, 5%, 18%, 28% and a new 40% band for select “demerit” items), the direction of rate cuts, and how the 40% slab is meant to simplify erstwhile cess. In short, anyone looking up new gst rates for 2025 will find a practical, itemised view below.

GST Reforms 2025: Key Changes in GST Rates Across Categories

The headline takeaway is simplification. Several essentials remain at 0% or 5%, the mainstream consumption band continues at 18%, and the legacy mix of “28% + compensation cess” has, for specified categories, been recast into a single 40% slab to reduce arithmetic on invoices. The new gst rates are therefore easier to read in a new gst rates list, while select mass-use categories saw calibrated reductions to support affordability.

New GST Rates in India (Effective September 22, 2025)

Below is a quick gst rate list of slabs and their broad use-cases as per the latest gst new update.

Note: Descriptions are indicative. Actual classification follows notified HSN codes and official circulars.

Decrease in the GST rates

Recent rationalisation focused on items with broad social or economic impact. The table below highlights representative reductions.

Actual eligibility depends on detailed notifications; buyers should check the exact HSN/SAC.

Kinds of GST rates and structures in India

India’s GST is a destination-based tax collected in three flavours: CGST (Central), SGST (State) for intra-state supplies, and IGST for inter-state supplies or imports. When a bill shows 18%, it is typically split as 9% CGST + 9% SGST for intra-state transactions; for inter-state, IGST appears at 18%. Input Tax Credit (ITC) allows businesses to offset tax paid on inputs against output liability, ensuring GST is charged only on value added.

The slab design pursues three goals. First, equity: essentials sit at 0% or 5% to limit burden on households. Second, neutrality: the broad 18% band covers most goods/services to keep compliance simpler. Third, discouragement: demerit items attract a higher rate—historically 28% plus a compensation cess. Under the 2025 streamlining, some of these categories are grouped into a single 40% slab, making invoices cleaner than the old “base rate + cess” format. As readers go through the new gst rates list, they will notice this shift wherever a single number replaces the earlier dual structure.

Finally, a composition scheme still exists for smaller taxpayers, who may pay a lower flat rate (without ITC) in exchange for simpler returns. The scheme’s percentages and thresholds are notified from time to time and are separate from the consumer-facing slab story.

Here is an overview of GST rates:

This snapshot helps anyone comparing slabs before diving into item-wise details.

List of Items Taxed at 0% GST Rate

List of Items Taxed at 5% GST Rate

List of Items Replaced from 12% GST Rate to 5% GST Rate

This captures representative items that moved down in the latest gst new update to ease household budgets and support sectors with broad impact.

List of Items Taxed at 18% GST Rate

18% is the “workhorse” slab. Many common goods and services appear here in the new gst rates.

List of Items Replaced from 28% to New 40% and 18% GST Slabs

The reform recasts former “28% + cess” goods and separates out certain items that could remain at 18% based on policy rationale. Illustrative mapping:

List of Items Taxed at 40% GST Rate

Wherever notified, the single 40% slab substitutes the prior combination of 28% plus compensation cess.

List of Items Taxed at 3% GST Rate

List of Items Taxed at 0.25% GST Rate

How the 40% GST Slab Replaces Cess?

This quick reference shows how the new gst rates simplify billing where cess once applied.

Traders should still confirm exact notifications for the specific HSN code they sell or buy.

Conclusion

For households and small businesses, 2025 is mostly about clarity. The new gst rates keep essentials soft, retain a broad 18% standard band, and fold former “28% + cess” stories into a cleaner single number for specified goods. If a buyer needs the new gst rates list for planning purchases or preparing quotes, the tables above provide a ready reckoner. Because rate notifications can be granular, one should always cross-check the exact HSN classification before raising invoices. Treated as a living gst rate list, this page helps navigate the gst new update without jargon while anchoring decisions in the slabs that matter.

FAQs

Q1. What are new GST rates?

The new gst rates continue across 0%, 0.25%, 3%, 5%, 18%, 28% and—where notified—40% for select demerit items. The idea is to keep essentials light, maintain 18% as the default, and replace “28% + cess” with a single figure in specific cases. For a quick view, see the new gst rates list tables above.

Q2. Is GST still 9% in 2025?

 Nine percent by itself isn’t a consumer slab; it’s the half-share of CGST or SGST when the overall rate is 18%. For intra-state supplies, 18% appears as 9% CGST + 9% SGST. So yes, you will still see “9%” components on an 18% bill, but the slab for the item remains 18%.

Q3. Which items have 28% GST?

Some consumer durables and entertainment-related categories remain at 28% where no 40% substitution has been notified. Others previously at 28% may now be at 18% or 40%, depending on the item. The category-wise tables above show illustrative placements.

Q4. What is GST 1% and 5%?

“1%” typically refers to composition-scheme percentages for eligible small taxpayers (subject to conditions and no ITC). “5%” is a standard slab used for essentials such as passenger transport, certain food items, and specified medicines. Always check the exact HSN/SAC and the latest circulars before billing.

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