GST 2.0 Unveiled: Full list of items that have received a rate cut
GST Council Approves Two-Tier Tax Structure Of 5% And 18%: A big decision has been taken in the 56th meeting of the GST Council. In this meeting, chaired by Union Finance Minister Nirmala Sitharaman, the GST slabs have been reduced from four to just two. After the GST Council meeting, Nirmala Sitharaman said, ‘We have reduced the slabs. Now there will be only two slabs, and we are also considering the issues of compensation cess.
Now, what are the slabs in GST?
Now there will be only two slabs of GST – 5% and 18%, while the third slab will be special. He said that the 28% slab has been removed from GST. The new GST rates will be applicable from 22 September 2025.
full categorized list of items that have received a GST rate cut
GST Rate: 0% (Exempted Items)
These items are now tax-free under GST:
Health & Medicines:
- 33 Life-saving drugs and medicines
- Cancer medicines
- Medication for rare diseases
Insurance:
- Individual life insurance
- Health policies
Education Supplies:
- Maps, Charts, Globes
- Pencils, Sharpeners
- Crayons, Pastels
- Exercise Books, Notebooks
- Erasers
Food & Beverages:
- Ultra-High Temperature (UHT) milk
- Chena or paneer (pre-packaged and labelled)
- Pizza bread
- Khakhra
- Chapathi or Roti
GST Rate: 5%
Personal Care:
- Hair oil
- Shampoo
- Toothpaste
- Toilet soap
- Toothbrush
- Shaving cream
Food & Dairy:
- Butter
- Ghee
- Cheese & dairy spreads
- Namkeens
Household Items:
- Utensils
- Feeding bottles
- Napkins for babies
- Clinical diapers
Machinery & Tools:
- Sewing machines and parts
Medical Equipment:
- Thermometer
- Medical-grade oxygen
- All diagnostic kits and reagents
- Glucometer and test strips
- Corrective spectacles
Agriculture:
- Tractor tyres, parts, tractors
- Specified bio-pesticides
- Micro-nutrients
- Drip irrigation systems and sprinklers
- Agricultural, horticultural, or forestry machines for soil preparation
GST Rate: 18%
Vehicles:
- Petrol & Petrol Hybrid Cars (≤1200 cc & ≤4000 mm)
- Diesel & Diesel Hybrid Cars (≤1500 cc & ≤4000 mm)
- 3-wheeled vehicles
- Motorcycles (≤350 cc)
- Motor vehicles for goods transport
Electronics & Appliances:
- Air conditioners
- Televisions (above 32″), including LED & LCD TVs
- Monitors and projectors
- Dishwashing machines
Heavy Vehicles:
- Road tractors with engine capacity >1800 cc
GST Rate: 40% (Highest Slab / Sin Goods)
Tobacco & Related:
- Pan masala
- Cigarettes
- Gutka
- Chewing tobacco
- Bidis
Sugary & Caffeinated Drinks:
- Aerated waters with added sugar or flavor
- Caffeinated beverages
- Non-alcoholic beverages
Others:
- Smoking pipes
Luxury & Personal Vehicles:
- Motorcycles exceeding 350 cc
- Aircraft for personal use
- Yachts
Arms & Gambling:
- Revolvers and pistols
- Betting
- Casinos
- Gambling
- Horse racing
- Lottery
- Online money gaming
For the full list of items, click here.
Changes made keeping the common man in mind: Sitharaman
Finance Minister Nirmala Sitharaman said, ‘These reforms have been done keeping the common man in mind. Every tax imposed on the things of daily use of the common man has been reviewed, and in most cases, the rates have been drastically reduced. Along with farmers and the agriculture sector, the health sector will also benefit.’
On which items is now only 5% GST applicable?
The items on which GST has been reduced to 5% include hair oil, toilet soap, soap bars, shampoo, toothbrushes, toothpaste, bicycles, tableware, kitchenware, namkeen, bhujia, sauces, pasta, chocolate, coffee, and other household items.
On which things did GST end?
The items on which GST has been reduced from 5% to zero are ultra-high-temperature milk, chenna, and paneer. GST will be zero on all Indian breads. That is, whether it is roti or paratha or whatever, GST will be zero on all of them.
On which items 28% GST reduced?
Air conditioning (AC), TVs larger than 32 inches, all TVs will now be charged 18%, washing machines, small cars, and motorcycles worth Rs 350 or less. These will now be charged 18% GST instead of 28%.
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