The GST Council, chaired by Finance Minister Nirmala Sitharaman, has simplified the tax structure into two slabs – 5% and 18%, replacing four earlier slabs.
The revised GST rates will come into effect from September 22, 2025, across India.
All new GST notifications will be published on the CBIC website for public access.
UHT milk exempted, plant-based milk at 5%, all Indian breads exempt, carbonated fruit drinks moved to higher GST.
All agricultural machinery and equipment now attract 5% GST instead of 12%.
Most medicines and medical devices taxed at 5% GST, with exemptions for some essentials.
GST on small cars reduced from 28% to 18%, making them more affordable.
Mid-size & big cars, SUVs, and large motorcycles above 350cc now taxed at 40% GST.
GST reduced on bicycles (5%), soap bars (5%), TVs & ACs (18%), making essentials more affordable.
Individual life & health insurance policies exempt. Corrective spectacles now at 5% GST.