New GST Rates List 2026: Updated Tax Slabs & Item-Wise Rates in India

GST was introduced in India in 2017 under the 'One Nation, One Tax' initiative, replacing indirect taxes like VAT, Service Tax, and Excise Duty. After years of the multi-tier system, the new GST rates list brings the most sweeping overhaul since inception — simplifying slabs, reducing the tax burden on everyday goods, and easing compliance for businesses.

In this guide, we cover every revised rate, slab-wise and item-wise, so your invoicing and return filing stays accurate throughout FY 2025-26.

What Changed in GST Rates and Why It Matters

The old GST structure had five slabs: 0%, 5%, 12%, 18%, and 28%. Businesses frequently struggled with classification disputes, inverted duty structures, and rising compliance costs. The five-tier system also created confusion when goods sat on the border between slabs.

The 56th GST Council meeting on September 3, 2025, chaired by Finance Minister Nirmala Sitharaman, approved major revisions under GST Reforms 2.0, effective September 22, 2025 (the eve of Navratri).

Here's how the structure changed:

The 12% and 28% slabs have been merged or reclassified. A new 40% sin goods slab now covers luxury items, tobacco, and aerated drinks. This two-tier simplification reduces classification disputes and helps businesses file GST returns faster with fewer errors.

New GST Rates List 2025 — Complete Item-Wise Rate Chart

The following is the complete new GST rates list 2025 finalised at the 56th GST Council meeting on September 3, 2025. Rates are effective from September 22, 2025.

Items with 0% GST (Nil / Zero-Rated)

These goods are fully exempt from GST under the revised structure:

• 33 life-saving drugs and medicines
• Cancer medicines; medication for rare diseases
• Individual life insurance and health insurance policies
• Maps, charts, globes
• Pencils, sharpeners, crayons, pastels
• Exercise books, notebooks, erasers
• Ultra-High Temperature (UHT) milk
• Pre-packaged and labelled chena or paneer
• Pizza bread, khakhra, chapathi / roti

Accurate HSN code tagging is critical for zero-rated items before you raise an invoice. Use the free HSN/SAC Code Finder to classify your products correctly.

Items with 5% GST

Essential goods and a wide range of commodities fall in the 5% bracket.

Food & Agriculture

• Live horses; condensed milk; dried nuts (almonds, hazelnuts, pistachios, pine nuts, etc.)
• Dried citrus fruits, dates, figs, mangoes, avocados, guavas
• Malt (roasted or not); starches, inulin; vegetable saps and extracts
• Bidi wrapper leaves (tendu); Indian katha
• Sausages and similar meat products; preserved meat and fish
• Extracts and juices of meat, fish, crustaceans
• Cocoa butter, fat, oil; cocoa powder; chocolates
• Pasta, noodles, couscous; pastry, cakes, biscuits, communion wafers
• Corn flakes, bulgar wheat, FRK; extruded savoury products
• Jams, jellies, marmalades; tomato and mushroom preserves
• Coconut water (packaged); coffee and tea extracts, chicory
• Namkeens, bhujia, mixtures (packaged); diabetic foods
• Drinking water (20L bottles); mineral and aerated (unflavoured) water
• Plant-based milk drinks; soya milk drinks
• Fruit pulp or juice-based non-carbonated drinks; beverages containing milk
• Ice cream and edible ice; texturised vegetable proteins (soya bari, mungodi)
• Refined sugar (flavoured, cubes); other sugars and syrups; sugar confectionery

Medicines & Healthcare

• All drugs and medicines (including Fluticasone Furoate + Umeclidinium + Vilanterol, Brentuximab Vedotin, Ocrelizumab, Pertuzumab, Faricimab, and others)
• Glands and other therapeutic organs/substances
• Anaesthetics; iodine; sulphuric acid; nitric acid; ammonia; medical-grade hydrogen peroxide; medical-grade oxygen; steam
• Micronutrients under Fertilizer Control Order 1985; gibberellic acid; natural menthol
• Wadding, gauze, bandages, dressings, plasters
• All diagnostic kits and reagents; feeding bottles and nipples
• Surgical rubber gloves; medical examination gloves
• Medicaments (multi-ingredient, Ayurvedic, Unani, Siddha, Homoeopathic, Bio-chemic)
• Pharmaceutical goods (catgut, sutures, adhesives, laminaria tents, haemostatics, sterile pharma items)

Personal Care

• Talcum powder, face powder; hair oil, shampoo
• Toothpaste, tooth powder, dental floss; toothbrushes
• Shaving cream, shaving lotion, aftershave
• Toilet soap (bars, cakes, moulded pieces or shapes)
• Handcrafted candles; napkins

Handicrafts, Furniture & Artware

• Idols of wood, stone (including marble), or metals (not precious)
• Pottery and clay handicrafts: kulhads, matkas, diyas, terracotta
• Bamboo, cane, rattan furniture (handicraft); wooden and metal handicraft furniture
• Brass, copper, iron handicraft items (urli, lamps, decorative diyas, bells, lanterns)
• Ceramic tableware and kitchenware (handmade, decorative)
• Musical instruments: tabla, mridangam, veena, sitar, flute, shehnai, dholak, etc.
• Handmade and handicraft toys; dolls and puppet handicrafts
• Educational toys (non-electronic, handmade); handicraft games and puzzles

Other Essentials

• Footwear priced up to ₹2,500; umbrellas; sewing machines
• Contact lenses, spectacle lenses, spectacles
• Playing cards, chess board, carom board, and other board games
• Electric vehicles (2W, 3W, 4W); cycles
• Handmade and hand-embroidered shawls; hats (knitted/crocheted)
• Mathematical boxes, geometry boxes, colour boxes
• Rubber bands; latex rubber thread; rear tractor tyres and tubes
• Silicon wafers; bio-pesticides (neem-based, Trichoderma, etc.)
• Antiques over 100 years old
• Marble and travertine blocks; granite blocks
• Paper sacks/bags and biodegradable bags
• Bamboo flooring; bamboo wood building joinery

Items with 18% GST

This slab covers non-essential goods, most consumer electronics, and key construction materials.

• Cement — Portland, aluminous, slag, super sulphate, and all other types
• Coal, briquettes, and other solid fuels from coal; lignite (excluding jet); peat
• Biodiesel (other than supply to OMCs for blending)
• New pneumatic tyres (excluding cycles, aircraft, tractor rear)
• Television sets (all sizes); air-conditioners; refrigerators; washing machines
• Dishwashers; vacuum cleaners; microwave ovens
• Electric cooking appliances — induction cookers, rice cookers, electric heaters
• Food grinders, mixers, juicers; hair dryers, straighteners, electric shavers; electric irons
• Lighting fittings and fixtures — decorative, household, commercial
• Motorcycles up to 350cc; scooters and mopeds; three-wheelers (autos, e-rickshaws)
• Cars (small and mid-size); ambulances; buses and trucks
• Tyres, tractor parts, and other auto components

Items with 40% GST (Sin & Luxury Goods)

The newly introduced 40% slab targets:

• Pan masala; gutkha; flavoured or sweetened waters (including aerated waters)
• Other non-alcoholic beverages; carbonated fruit beverages; caffeinated beverages
• Unmanufactured tobacco, tobacco refuse (other than leaves)
• Cigars, cheroots, cigarillos, cigarettes; other manufactured tobacco and substitutes
• Tobacco/nicotine products for inhalation (without combustion)
• Motorcycles above 350cc
• Aircraft — private jets, business aircraft, helicopters
• Yachts and pleasure vessels
• Revolvers and pistols

How to Calculate GST on Your Invoices

Every GST-registered business must show the applicable GST percentage and tax amount on every invoice raised.

The calculation is simple:

GST Amount = (Sales Price × GST Rate) ÷ 100 Invoice Total = Sales Price + GST Amount

Example: Goods worth ₹1,000 at 18% GST → GST = ₹180 → Total invoice amount = ₹1,180

When you're billing multiple items across different GST slabs, manual calculation becomes error-prone. Use the free GST Calculator to get instant, accurate results.For businesses generating invoices in bulk, Munim's billing software auto-applies the correct GST rate based on the HSN code — no manual entry, no slab confusion.

New GST Rates List PDF - How to Stay Updated

Many businesses look for a new GST rates list PDF to reference offline or share with their accounts team. Here is the official GST Rationalization notification that you can save by clicking on the print icon on the right side of the screen.

Conclusion

The GST Reforms 2.0 two-tier structure makes rate classification cleaner for most SMEs. But accurate invoicing and on-time return filing remain your responsibility — and any mismatch in GST rates can trigger notices or ITC reversals.

Whether you're filing GSTR-9 annual returns or generating day-to-day sales invoices, applying the correct rate from the new GST rates list 2025 is non-negotiable for compliance. The right software removes that risk entirely.Explore Munim pricing plans and see how affordable it is to automate your GST billing and return filing — built for Indian SMEs, CAs, and accountants.

FAQs on GST Rates 

1. What is zero-rated supply in GST?

Zero-rated supply means the goods or service attract 0% GST. Exports and supplies to SEZ units are also treated as zero-rated under GST law.

2. What is NIL-rated supply in GST?​

NIL-rated supply means the commodity is exempted from GST and effectively attracts 0% tax. The key distinction from zero-rated is that NIL-rated supplies don't qualify for ITC refunds on inputs.

3. What is the GST rate on essential commodities?

Unbranded and unpacked food grains and staples are exempt (0%). Branded or pre-packaged versions attract 5%.

4. What is the GST rate on mobile phones?

GST on smartphones in India is 18%.

5. What is the GST rate on gold?

3% GST applies on gold purchases in India (this rate was not revised under GST Reforms 2.0).

6. How are GST rates decided? 

The GST Council reviews rates periodically. Representatives from the Centre and all State governments meet to revise slabs based on economic conditions and industry requirements.

7. What is the GST rate on bread?​

In India, 3% GST is levied on Gold purchase.

About the author

Mehul Jagwani

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Mehul is a seasoned content writer with a passion for simplifying complex accounting and GST topics. With a keen interest in entrepreneurship and business management, he specializes in creating informative and engaging content for themunim.com. His goal is to help businesses understand and implement accounting and GST software solutions effectively. When he's not crafting content, Mehul enjoys exploring new places and spending time with his Golden Retriever.