The recent 2025 reforms to India’s Goods & Services Tax (GST) usher in a major shift: the multiple-slab system is replaced with two main rates — 5 % and 18 % — while a new 40 % “de-merit” rate applies to luxury and sin goods.
GST Rates: 0%
- 33 Life-saving drugs and medicines, Cancer medicines, Medication for rare diseases,
- Individual life insurance, Health policies
- Maps, Charts, Globes, Pencils, Sharpeners, Crayons, Pastels, Exercise Books, Notebooks, Erasers
- Ultra-High Temperature (UHT) milk, Chena or paneer, pre-packaged and labelled, Pizza bread, Khakhra, Chapathi or Roti
GST Rates: 5%
- Hair oil, Shampoo, Toothpaste, Toilet soap, Tooth brush, Shaving cream
- Butter, Ghee, Cheese & dairy spreads, Namkeens, Utensils
- Feeding bottles, napkins for babies and clinical diapers
- Sewing machines and parts
- Thermometer, Medical grade oxygen, All diagnostic kits and reagents, Glucometer and test strip
- Corrective spectacles
- Tractor tyres, parts, tractors
- Specified bio-pesticides, Micro-Nutrients
- Drip irrigation system and sprinklers
- Agricultural, horticultural or forestry machines for soil preparation
GST Rates: 18%
- Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1200 cc & 4000 mm)
- Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000 mm)
- 3 Wheeled Vehicles
- Motorcycles (350 cc & below)
- Motor Vehicles for the transport of goods
- Air Conditioners
- Televisions (above 32″) including LED & LCD TVs
- Monitors & Projectors
- Dish Washing Machines
- Road tractors of engine capacity more than 1800 cc
GST Rates: 40%
- Pan masala, Cigarettes, Gutka, Chewing Tobacco, Bidis
- Aerated waters containing added sugar or flavour, Caffeinated beverages, Non-alcoholic beverages
- Smoking pipes
- Motorcycles exceeding 350 cc
- Aircraft for personal use
- Yachts
- Revolvers and pistols
- Betting, casinos, gambling, horse racing, lottery and online money gaming
