India is on the verge of its biggest Goods and Services Tax (GST) revamp, which was launched in 2017 – informally known as GST 2.0. The reforms finalised at the 56th GST Council meeting will now simplify the current 4-slab system and convert it into two primary rates: 5% and 18%. A separate 40% “sin tax” has been kept for luxury and harmful goods. Along with this, vital items like milk, bread and important medicines will become tax-free from 22 September 2025, which will coincide with the beginning of Navratri. This step will transform compliance, consumer spending and affordability across the country.
| Items | From | To |
|---|---|---|
| Hair Oil, Shampoo, Toothpaste, Toilet Soap Bar, Tooth Brushes, Shaving Cream | 18% | 5% |
| Butter, Ghee, Cheese & Dairy Spreads | 12% | 5% |
| Pre-packaged Namkeens, Bhujia & Mixtures | 12% | 5% |
| Utensils | 12% | 5% |
| Feeding Bottles, Napkins for Babies & Clinical Diapers | 12% | 5% |
| Sewing Machines & Parts | 12% | 5% |
| Items | From | To |
|---|---|---|
| Tractor Tyres & Parts | 18% | 5% |
| Tractors | 12% | 5% |
| Specified Bio-Pesticides, Micro-Nutrients | 12% | 5% |
| Drip Irrigation System & Sprinklers | 12% | 5% |
| Agricultural, Horticultural or Forestry Machines for Soil Preparation, Cultivation, Harvesting & Threshing | 12% | 5% |
| Items | From | To |
|---|---|---|
| Individual Health & Life Insurance | 18% | Nil |
| Thermometer | 18% | 5% |
| Medical Grade Oxygen | 12% | 5% |
| All Diagnostic Kits & Reagents | 12% | 5% |
| Glucometer & Test Strips | 12% | 5% |
| Corrective Spectacles | 12% | 5% |
| Items | From | To |
|---|---|---|
| Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding - 1200 cc & 4000mm) | 28% | 18% |
| Diesel & Diesel Hybrid Cars (not exceeding - 1500 cc & 4000mm) | 28% | 18% |
| 3 Wheeled Vehicles | 28% | 18% |
| Motor Cycles (350 cc & below) | 28% | 18% |
| Motor Vehicles for transport of goods | 28% | 18% |
| Items | From | To |
|---|---|---|
| Maps, Charts & Globes | 12% | Nil |
| Pencils, Sharpeners, Crayons & Pastels | 12% | Nil |
| Exercise Books & Notebooks | 12% | Nil |
| Eraser | 5% | Nil |
| Items | From | To |
|---|---|---|
| Air Conditioners | 28% | 18% |
| Television (above 32") (including LED & LCD TVs) | 28% | 18% |
| Monitors & Projectors | 28% | 18% |
| Dish Washing Machines | 28% | 18% |