Prime Minister Narendra Modi had earlier promised a Diwali gift for the people of India, which has now been delivered through the introduction of Next-Gen GST Reforms. First announced on the 79th Independence Day in 2025 and later approved during the 56th GST Council meeting chaired by Finance Minister Nirmala Sitharaman, the new GST rate structure provides relief on daily essentials, healthcare, education, agriculture, automobiles, and electronic appliances.
The reforms focus on simplifying the tax system, rationalising GST rates, correcting inverted duty structures, and widening exemptions for essential services. Citizens, farmers, MSMEs, and small businesses are expected to benefit, while the overall economy will see reduced costs and improved compliance. According to the PIB, the new GST rate changes for goods and services will take effect on 22nd September 2025.
New GST Rate List 2025
Save Big on Daily Essentials
| 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% |
Uplifting Farmers & Agriculture
| 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 (Soil Prep, Cultivation, Harvesting & Threshing) | 12% | 5% |
Relief in Healthcare Sector
| Items | From | To |
|---|---|---|
| Individual Health & Life Insurance | 18% | Nil |
| Thermometer | 12% | 5% |
| Medical Grade Oxygen | 12% | 5% |
| All Diagnostic Kits & Reagents | 12% | 5% |
| Glucometer & Test Strips | 12% | 5% |
| Corrective Spectacles | 12% | 5% |
Affordable Education
| Items | From | To |
|---|---|---|
| Maps, Charts & Globes | 12% | Nil |
| Pencils, Sharpeners, Crayons & Pastels | 12% | Nil |
| Exercise Books & Notebooks | 12% | Nil |
| Eraser | 5% | Nil |
Automobiles Made Affordable
| Items | From | To |
|---|---|---|
| Petrol & Petrol Hybrid, LPG, CNG Cars (≤ 1200 cc & 4000mm) | 28% | 18% |
| Diesel & Diesel Hybrid Cars (≤ 1500 cc & 4000mm) | 28% | 18% |
| 3 Wheeled Vehicles | 28% | 12% |
| Motor Cycles (350 cc & below) | 28% | 12% |
| Motor Vehicles for Transport of Goods | 28% | 18% |
Save on Electronic Appliances
| 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% |
