New GST rates: Full list of items that have received rate cut

The GST Council has approved a major tax reform, simplifying the structure into just two slabs — 5% and 18%. The new rates will take effect from September 22, 2025, while a special 40% slab will remain for luxury and sin goods.

Union Finance Minister Nirmala Sitharaman said the decision was taken unanimously, with all states on board. “We have reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation cess,” she announced, emphasizing the focus on easing burden for the common man.

West Bengal minister Chandrima Bhattacharya stated that the reform will lead to an estimated revenue loss of ₹477 billion. Prime Minister Narendra Modi also welcomed the move, calling it a step towards benefiting households and small businesses.

GST rates: Items under 0%

33 Life-saving drugs, cancer medicines, rare disease medication
Individual life insurance, health policies
Maps, charts, globes, pencils, sharpeners, crayons, pastels, notebooks, erasers
UHT milk, paneer, pizza bread, khakhra, chapathi or roti

GST rates: Items under 5%

Hair oil, shampoo, toothpaste, soaps, shaving cream
Butter, ghee, cheese, dairy spreads, namkeens, utensils
Baby feeding bottles, napkins, clinical diapers
Sewing machines and parts
Thermometers, oxygen, diagnostic kits, glucometers
Corrective spectacles
Tractor tyres, parts, tractors
Bio-pesticides, micro-nutrients
Drip irrigation systems, sprinklers, forestry machines

GST rates: Items under 18%

Small cars (petrol, diesel, hybrid), motorcycles ≤350cc, 3-wheelers
Goods transport vehicles, air conditioners
Televisions above 32″, monitors, projectors
Dishwashing machines, road tractors (engine >1800cc)

GST rates: Items in 40%

Pan masala, cigarettes, gutka, chewing tobacco, bidis
Aerated waters, caffeinated and sweetened beverages
Motorcycles >350cc, personal aircraft, yachts
Revolvers, pistols, betting, casinos, gambling, horse racing, lottery, online gaming