GST Council Approves 5 %, 18 %, 40 % Slabs from Sept 22 — Here’s the Full List
Key Highlights
- New GST slabs: Now only 5 % and 18 % for most goods and services, plus a 40 % rate for sin and luxury items. Slabs of 12 % and 28 % are discontinued.
- Effective date: From September 22, 2025, aligning with the start of Navratri.
- What’s now cheaper:
- 5 %: Hair oil, soap bars, toothpaste, toothbrushes, shampoos, packaged snacks, chocolates, ghee, cornflakes, instant noodles, namkeen, sauces, pasta, agricultural tools, handicrafts, tables, kitchenware. Some essentials like UHT milk, roti, paneer and health insurance are tax-free (0 %).
- 18 %: Air conditioners, TVs, dishwashers, small cars (petrol ≤1200cc, diesel ≤1500cc), motorcycles ≤350cc, ambulances, three-wheelers, cement.
- 40 %: Tobacco products (cigarettes, gutka, pan masala), aerated drinks, high-end cars above 1500cc.
- Insurance update: All individual life and health insurance policies are now exempt (0 %) from GST.
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Editor Insights
This simplifies GST in a big way. Two slabs are easier to follow. It cuts taxes on essentials and keeps sin goods expensive. The move lowers costs for families and may boost festive demand. But the rise in luxury tax helps balance revenue. Businesses must update billing systems before September 22. Watch the GST portal for official notifications.
More Details at a Glance
| Category | New Rate | Examples |
|---|---|---|
| Essentials | 0 % | Roti, paneer, UHT milk, life and health insurance |
| Daily Use Items | 5 % | Soap, shampoo, toothpaste, instant noodles, snacks, kitchenware |
| Durables & Vehicles | 18 % | ACs, TVs, small cars, motorcycles, ambulances, cement |
| Sin & Luxury | 40 % | Cigarettes, aerated drinks, cars above 1500cc |
Source & Attribution
This article reflects data from government briefings and trusted media: Times of India, and Press Information Bureau (PIB).
Disclaimers
This article uses public, published sources. GST reforms take effect only after official Government notification (CBIC gazette). For business decisions, verify CBIC updates or consult a tax professional. EveningHeadline.com is not responsible for actions based on informal or mistaken interpretation.
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