The 56th GST Council Meeting, chaired by Finance Minister Nirmala Sitharaman on 3 September 2025, introduced the biggest GST reform since 2017. The reform, called the Next-Gen GST, takes effect from 22 September 2025.

The Council reduced taxes on essentials, agriculture, healthcare, and education, rationalized GST on automobiles and electronics, while increasing rates on sin and luxury goods.

Below is the complete item-wise list of GST rate changes (old vs new) from the official notification.

GST Implementation Timeline

• All service rate changes: Effective 22 Sept 2025
• All goods (except tobacco, pan masala, gutkha): Effective 22 Sept 2025
• Tobacco & related products: Continue at current rates until cess loan repayment is complete; revised rates to be notified later

GST Rate Changes by Category

Daily Essentials & FMCG

• Hair Oil, Shampoo – 18% → 5%
• Toothpaste, Tooth Powder, Dental Floss – 18%/12% → 5%
• Toilet Soap (bars, cakes, molded pieces) – 18% → 5%
• Shaving Cream, Aftershave Lotion – 18% → 5%
• Talcum Powder, Face Powder – 18% → 5%
• Butter, Ghee, Dairy Spreads – 12% → 5%
• Cheese – 12% → 5%
• Paneer (pre-packaged) – 5% → Nil
• Namkeens, Bhujia, Mixtures (pre-packaged) – 12% → 5%
• Khakhra, Chapathi, Roti – 5% → Nil
• Pizza Bread – 5% → Nil
• Paratha, Parotta, other Indian breads – 18% → Nil
• Pastry, Cakes, Biscuits – 18% → 5%
• Chocolates & Cocoa Products – 18% → 5%
• Ice Cream – 18% → 5%
• Fruit Juices, Packaged Tender Coconut Water – 12% → 5%
• Coffee & Tea Extracts – 18% → 5%
• Sauces, Seasonings, Curry Pastes – 12% → 5%
• Soups & Broths – 18% → 5%
• Drinking Water (20L bottles) – 12% → 5%
• Plant-based Milk Drinks, Soya Milk – 12%/18% → 5%
• Fruit Juice Drinks (non-carbonated) – 12% → 5%

Agriculture & Farming

• Tractors – 12% → 5%
• Tractor Tyres & Tubes – 18% → 5%
• Tractor Parts (clutch, brakes, radiators, gearboxes, wheels, silencers, hydraulics, fenders, etc.) – 18% → 5%
• Agricultural Diesel Engines – 18% → 5%
• Bio-Pesticides (Neem-based, Trichoderma, Bacillus, etc.) – 12% → 5%
• Micronutrients (as per Fertilizer Control Order) – 12% → 5%
• Drip Irrigation Systems & Sprinklers – 12% → 5%
• Mechanical Sprayers – 12% → 5%
• Soil Preparation Machines – 12% → 5%
• Harvesting & Threshing Machines – 12% → 5%
• Beekeeping, Poultry, Horticulture Machines – 12% → 5%
• Composting Machines – 12% → 5%

Healthcare & Medicines

• Individual Health & Life Insurance – 18% → Nil
• Thermometers – 12% → Nil
• Medical Grade Oxygen – 12% → 5%
• Diagnostic Kits & Reagents – 12% → 5%
• Glucometers & Test Strips – 12% → 5%
• Corrective Spectacles & Lenses – 12% → 5%
• Frames & Mountings for Spectacles – 12% → 5%
• Surgical Rubber Gloves – 12% → 5%
• Bandages, Dressings – 12% → 5%
• Surgical Catgut, Absorbable Sutures – 12% → 5%
• Essential Medicines (cancer, rare diseases) – 12% → 5% / Nil
• Ayurvedic, Homeopathic, Unani Medicines – 12% → 5%

Education & Learning Materials

• Maps, Charts, Globes – 12% → Nil
• Pencils, Crayons, Pastels, Chalks – 12% → Nil
• Exercise Books, Notebooks – 12% → Nil
• Erasers – 5% → Nil
• Graph Books, Laboratory Notebooks – 12% → Nil
• Mathematical Boxes, Geometry Boxes – 12% → 5%
• School Stationery Kits (boxes, compendiums) – 12% → 5%

Automobiles & Transport

• Petrol & Petrol Hybrid Cars ≤1200cc & ≤4000mm – 28% → 18%
• Diesel & Diesel Hybrid Cars ≤1500cc & ≤4000mm – 28% → 18%
• 3-Wheelers – 28% → 18%
• Motorcycles ≤350cc – 28% → 18%
• Goods Transport Vehicles – 28% → 18%
• Road Tractors (semi-trailers >1800cc) – 28% → 18%
• Ambulances – 28% → 18%
• Motorcycles >350cc – 28% → 40%
• Luxury Cars & SUVs (>4000mm or >1500cc) – 28% → 40%

Electronics & Appliances

• Air Conditioners – 28% → 18%
• Televisions >32” (LCD/LED) – 28% → 18%
• Monitors & Projectors – 28% → 18%
• Dishwashing Machines – 28% → 18%
• Solar Water Heaters – 12% → 5%
• Solar Cookers & Biogas Plants – 12% → 5%
• Lithium-ion Batteries & Power Banks – 28% → 18%
• Renewable Energy Devices (Solar, Wind, Waste-to-Energy, etc.) – 12% → 5%

Construction Materials, Textiles & Handicrafts

• Cement – 28% → 18%
• Coal, Lignite, Peat – 5% → 18%
• Handicrafts (Wood, Brass, Stone, Clay, Glass, Textiles) – 12% → 5%
• Paper Bags & Biodegradable Bags – 18% → 5%
• Handmade Paper & Boards – 12% → 5%
• Exercise Book Paper (uncoated) – 12% → Nil
• Footwear ≤₹2500 – 12% → 5%
• Apparel/Clothing ≤₹2500 – 12% → 5%
• Quilts ≤₹2500 – 12% → 5%
• Bamboo, Rattan, Cane Furniture – 12% → 5%
• Coir Products – 12% → 5%

Sin & Luxury Goods

• Pan Masala – 28% → 40%
• Gutkha, Zarda, Chewing Tobacco – 28% → 40%
• Cigarettes, Cigars – 28% → 40%
• Bidis – 28% → 18%
• Sugary Drinks & Aerated Beverages – 28% → 40%
• Caffeinated Beverages – 28% → 40%
• Luxury Cars & SUVs – 28% → 40%
• Motorcycles >350cc – 28% → 40%
• Yachts, Private Aircraft – 28% → 40%
• Alcohol (for human consumption) – Outside GST, state taxes apply
• Petrol & Diesel – Outside GST, state VAT/excise apply

The Next-Gen GST Reform 2025 delivers a sweeping overhaul of India’s indirect tax system. By reducing GST on essentials, farming tools, healthcare, education, and green technology, the government has provided relief for households, farmers, and students. At the same time, higher levies on sin and luxury goods aim to discourage harmful consumption and ensure revenue stability.

Effective from 22 September 2025, this reform is the most comprehensive GST restructuring since its launch in 2017.

Tags: GST rate changes 2025, Next-Gen GST reform, GST on essentials 2025, GST on agriculture, GST on healthcare, GST on education, GST automobiles 2025, GST electronics 2025, GST sin goods 2025