REDUCTION IN GST RATES FROM SEPTEMBER 22, 2025

Rationalisation of the current 4-tiered tax rate structure into a citizen-friendly ‘Simple Tax’ – a 2 rate structure with a Standard Rate of 18% and a Merit Rate of 5%; a special de-merit rate of 40% for a select few goods and services

EXEMPTIONS IN GST W.E.F SEPTEMBER 22, 2025 Exemption of GST on all individual health insurance policies (including family floater policies and policies for senior citizens) and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country

Exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country.

REDUCTIONS  IN GST RATES FROM 12% TO 5% W.E.F SEPTEMBER 22, 2025

Reduction of GST from 12% to 5% on “Hotel Accommodation” services having value less than or equal to Rs. 7,500 per unit per day or equivalent

Reduction of GST from 12% to 5% on agricultural goods, such as tractors, agricultural, horticultural or forestry machinery for soil preparation or cultivation, harvesting or threshing machinery, including straw or fodder balers, grass or hay mowers, composting machines etc

Reduction of GST from 12% to 5% on labour intensive goods such as Handicrafts, Marble and travertine blocks, granite blocks, and Intermediate leather goods Reduction of GST from 12% to 5% on renewable energy devices and parts for their manufacture

Reduction of GST from 12% to 5% on various medical equipment and supplies devices such as wadding gauze, bandages, diagnostic kits and reagents, blood glucose monitoring system (Glucometer) medical devices, etc Reduction of GST from 12% OR 18% to 5% on almost all of the food items such as packaged namkeens, Bhujia, Sauces, Pasta, Instant Noodles, Chocolates, Coffee, Preserved Meat, Cornflakes, Butter, Ghee, etc.    Reduction of GST on all other drugs and medicines from 12% to 5%.

Reduction of GST from 18% OR 12% to 5% on a host of common man items such as, hair oil, toilet soap bars, shampoos, toothbrushes, toothpaste, Bicycles, Tableware, kitchenware, other household articles, et al Reduction of GST from 18% to 5% on beauty and physical well-being services used by common man including services of gyms, salons, barbers, yoga centres, etc

Reduction of GST from 18% to 5% on various medical apparatus and devices used for medical, surgical, dental or veterinary usage or for physical or chemical analysis

REDUCTIONS  IN GST RATES FROM 28% TO 18% W.E.F SEPTEMBER 22, 2025

Reduction of GST from 28% to 18% on Air-conditioning machines, TVs~32 inch (all TVs now at 18%), Dishwashing machines, Small cars, Motorcycles equal to or less than 350 CC

Reduction of GST from 28% to 18% on buses, trucks, ambulances etc Reduction of GST from 28% to 18% on Cement

Reduction of GST from 28% to 18% on Small Cars and Motorcycles equal to or below 350cc

REDUCTIONS  IN GST RATES FROM 5% TO NIL W.E.F SEPTEMBER 22, 2025

Reduction of GST from 5% to NIL on Ultra-High Temperature (UHT) milk, Prepackaged and labelled chena or paneer; All the Indian Breads will see NIL rates (Chapati or roti, paratha, parotta, etc)

Reduction of GST from 12% to NIL on 33 lifesaving drugs and medicines and from 5% to NIL on 3 lifesaving drugs & medicines used for treatment of cancer, rare diseases and other severe chronic diseases. Uniform rate of 18% on all auto parts irrespective of their HS code; Three-Wheelers from 28% to 18%